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Jayant Dua appointed MD of Birla Sun Life

Description  :  Corporate
Date  :  Aug-05-2010

Birla Sun Life Insurance (BSLI) is a subsidiary of Aditya Birla Nuvo.

It has appointed Jayant Dua as its managing director with retrospective effect from July 1.

Meanwhile, before this, Dua was the president and CEO of the Aditya Birla Group's electrical insulator manufacturing arm named Aditya Birla Insulators.

The life insurance industry, however, ended a decade-long journey in 2010.

It has more challenging opportunities ahead.

In the meantime, Jayant's varied exposure in several businesses will help BSLI achieve its goals ahead.

BSLI is a joint venture between the Aditya Birla Group and Canada's leading financial services firm Sun Life.

It had a total AUM of Rs 16,000 crore and a robust capital base of Rs 2,450-crore as of March 31, 2010.

On the other hand, Dua had been associated with several companies of the Aditya Birla Group for the last 14 years.

He has handled businesses such as sales, marketing, strategy and IT.

Earlier, it was said that Birla Sun Life Insurance plans to inject capital of Rs 175 crore by this fiscal end.

The company, which at present, is capitalised to the extent of Rs 2,325 crore, is also lining up funds of another Rs 500 crore in the financial year 2011.

According to Mr Vikram Kotak, Chief Investment Officer (CIO), Birla Sun Life Insurance, the firm should be closing the financial year 2011 with a capitalisation of Rs 3,000 crore.

Besides this, the firm is also expanding its agent force to two lakh from the current 1.8 lakh in 12 months.

On the industry scenario, Mr Kotak said "The current industry growth is at 29 per cent on year-on-year basis. The increasing distribution reach and investment performance may lead the industry to grow between 18 per cent and 20 per cent in the next five to 10 years,".

On the other hand, Aditya Birla Nuvo is planning to infuse over Rs 800 crore in its life insurance arm, Birla Sun Life Insurance (BSLI), by this fiscal end.

Out of the Rs 800 crore, the company is planning to inject Rs 400 crore into BSLI in the current quarter depending on growth.

Aditya Birla Nuvo Chief Financial Officer Sushil Agarwal said, "It (investment of Rs 400 crore) has been targeted that way, but all will depend on what kind of growth we will achieve in this quarter in our life insurance business,". He also added that the company may make an investment of Rs 375 crore in the next fiscal depending on its requirements.

So far, this fiscal the company has pumped Rs 200 crore into BSLI and its current capital base is Rs 2,100 crore, he said.

The private insurer is a joint venture between the Aditya Birla Group and Canada-based financial services company Sun Life Financial Inc.

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