By IANS,
Chennai : Cost-cutting measures by private life insurer HDFC Standard Life Insurance Co. is likely to reduce its planned capital infusion by around Rs.100 crore to Rs.250 crore this fiscal, a top official said Monday.
“The cost-cutting measures are likely to cut the amount of fresh capital required this fiscal to Rs.250 crore as against the initial estimate of Rs.350 crore,” said Pranesh Parasnis, principal officer and executive director of HDFC Standard Life.
“We have set a growth target of around 15 percent (for the current fiscal), which requires additional funds for meeting the acquisition costs and solvency norms,” Parasnis told reporters after launching the company’s two new policies here.
“The shareholders already brought in Rs.50 crore last month.”
According to him, the company through bulk purchases and reverse auction process has achieved cost savings of 20-40 percent across different items.
HDFC Standard Life is revamping its product base by launching new policies, taking into account customers’ changing preferences as well as the new policy charges norms of the insurance regulator.
“We will launch three more products under the Super Series this fiscal – one endowment policy and two policies that require limited underwriting norms,” Parasnis said.
“We hope to earn 25 percent of the premium from this new series.”
The new products with a lower minimum annual premium is expected to increase the company’s policy persistency ratio that dropped by 8 percent to 85 percent last fiscal as compared to the year before.
The Mumbai-based insurer is planning to hit capital markets in 2012.