New Delhi: Even as competition in the insurance sector is on the rise, Max New York Life Insurance Co, one of the top five private life insurance firms in India, has announced plans to tap the financially weaker segments of the country through a new insurance and savings scheme called Max Vijay. On the sidelines of the launch of Max Vijay, Analjit Singh, chairman of Max India, spoke to Joe C Mathew and Prashant Sahu about the company's future plans. Excerpts:Will the government's proposed plans to raise the foreign direct investment (FDI) limit from 26 per cent to 49 per cent impact Max India?
It will allow New York Life to exercise an option to increase its equity stake in Max New York Life Insurance Co. But there will not be any impact on the joint venture business. We have already announced aggressive growth plans. The move will not have any impact on the five or six large insurance companies in India.
However, for second-tier life insurance firms, where the domestic partners are not very active, this might lead to more activity and aggression in the business. There must be some other foreign insurance companies who are waiting for this to happen to announce their plans for India. In any case, competition will increase and size of the business will grow. Overall, it is a positive for the industry.
How important is the life insurance business for Max India?
Life insurance business accounts for almost 75 per cent of Max India's revenues. It will continue to be our major revenue source. We want to be a $5-billion company by 2011-12, and two-thirds of that should come from this business. We are targeting to achieve revenue in excess of $1.7 billion by the end of March 2009.
How do you differentiate yourself from other private life insurance players?
Unlike others, Max is a pure life insurance player. For all the other existing players, the life insurance business is one among many things. For me, Max India being just a holding company, life insurance is the biggest business. You have also announced a joint venture with UK's leading insurance player BUPA for the health insurance sector. How do you intend to go forward?
There are only two or three standalone health insurance players, who have also just started. So it is too early to comment on their performance. Max Bupa Health Insurance will have a very clear business plan. Others might have announced their plans first. But it is not enough to announce it and fire. You have to aim. We are aiming (firming up business plans) for 17 months so that when we fire, we go.
How is your healthcare business?
We have big growth plans for Max Healthcare. Four new hospitals, three in Delhi and one elsewhere in the North are coming up. We are growing in the super-specialty area and will be the biggest private player that provides comprehensive healthcare at a single hospital. There were reports about Max India planning to list of each of its business arms as separate entities in the stock exchanges. Your comments.
The report was incorrect. I had said that we will list them at some point in time. It could be two years or 12 years. Right now we are not listing. I guarantee you that we are not listing them at least for the next few years.
What about your speciality plastic business? Any plans to divest unrelated segments as your focus is now on healthcare service, and the life and non-life insurance segments?
I agree that it is an odd ball in our business mix. But it is a very successful business. It is going on very well on its own. Let it continue.
Source: Business Standard
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