Canara HSBC OBC Life Insurance posts maiden profit in 5th year of operation

India Infoline News Service | Mumbai |

Canara HSBC OBC Life Insurance garnered premium income of Rs. 3.44 billion in March 2013 and closed the fiscal with Rs. 19.12 billion, issuing 390,974 policies since launch

Canara HSBC Oriental Bank of Commerce Life Insurance reported its maiden profit of Rs. 235 million in FY12-13, its fifth year of operations.

Distributing exclusively through its shareholder-banks and associates, Canara HSBC Oriental Bank of Commerce Life Insurance’s achievements demonstrate the strength of the bancassurance model in efficiently reaching both urban and rural customers through the reach of the banks' branch networks.

Strong focus on need-based selling and regular collection of renewal premiums has ensured that the business remains stable and sustainable. For FY 2012-13, 13th-month persistency (a measure of how many policies remain in-force) stood at 75.3% and 25th-month persistency stood at 87.7%, amongst the highest in the industry.

Canara HSBC Oriental Bank of Commerce Life Insurance garnered premium income of Rs. 3.44 billion in March 2013 and closed the fiscal with Rs. 19.12 billion, issuing 390,974 policies since launch. The Company also exceeded its rural and social sector sales goals for FY12-13, as it has done in all previous years.

Canara HSBC Oriental Bank of Commerce Life Insurance has a strong solvency ratio at 384% against the regulatory requirement of 150%.  Owing to sound financial management and cost efficiencies built in from day one, the Company has one of the lowest Opex to premium ratios in the industry, at 13%.

John Holden, CEO, Canara HSBC Oriental Bank of Commerce Life Insurance, said, “While a lot has changed in the last five years, we are confident of sustained profitable growth; we have the right business model and we have the right business partners.  Our focus on regular premium policies, which is closely aligned to the long-term nature of life insurance, has ensured continuous inflows and helped to build sustainable income to support the cost base, delivering a path to profitability.  Our philosophy is based on propositions aligned to the core needs of customers, which don't change even if the platform or product structure does and we welcome the pro-consumer product regulations introduced by the IRDA.”

Mr Holden added, “It is indeed encouraging to see our Company on a firm footing with a strong and now profitable growth trajectory, in such a short span. Our achievement is a result of the commitment of our banks and employees in meeting the insurance needs of their customers.”
 

 

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