BHARTI AXA GENERAL PLANS CAPITAL INFUSION OF RS 645 CRORE

Mumbai: Bharti AXA General Insurance, the latest entrant in the general insurance business in the country, is planning capital infusion of Rs 645 crore over the next five years. Announcing the commencement of its operations here today, Milind Chalisgaonkar, chief executive officer said the general insurance market in India has strong growth potential. He said the two joint venture partners, namely, Bharti Enterprises which has 74 per cent stake in the company and AXA, a major insurance player internationally holding 26 per cent stake have already invested Rs 130 crore in the venture. The insurance regulations require minimum capital of only Rs 100 crore. Responding to queries on the quantum of business the company is targetting, he said he would not like to make forward looking statement. He also pointed out there is no formula that a company could generate a certain level of business based on the capital invested. He, however, indicated a company could possibly generate business which is four to five times the capital. There are 25 crore middle class people. The parent company Bharti has 72 million consumers and Bharti group's reach would be leveraged to grow business, he said. He said the company will offer products to cover property, motor, health, personal accident across rural, urban and commercial segments. It is the third JV Bharti has entered into with AXA. Earlier, the company had entered into JV with AXA for life insurance and for an asset management company.

Source: PTI, The Economic Times, Asian Age, The Hindu Business Line, The Hindu, The Telegraph, The Statesman, Business Standard, Deccan Chronicle, Daily News & Analysis