ING Life to invest Rs 2.40 bn for expansion plans

ING Life India, part of the ING Group, has announced its 5-year growth ambition, including growing the business by 5 times and growing its customer base to 5 million. The company will be infusing fresh capital of Rs 2.40 billion in FY 2010-11 to fund its expansion.Unveiling the 5-year ambition for ING Life India, Tom McInerney, COO - ING Insurance said, ``ING sees its Asia-Pacific businesses to lead the growth in insurance worldwide. Within ING Asia-Pacific, India is uniquely placed and a frontrunner of this growth. We have a huge opportunity in this market and we are committed to see this business grow.``ING Life India`s 5-year ambition will be driven by expanding its distribution network, improving its productivity and building efficiencies. ING Life currently has a strong captive distribution network, including its tied agency force and bancassurance. It has a presence panning 232 cities across the country, with over 55,000 tied agents and a strong Bancassurance partner, ING Vysya Bank.Explaining the plan, Kshitij Jain, MD & CEO, ING Life India said, ``Over the last 18 months, we had focused on consolidating our business and strengthening its foundation. The company is ready to embark on its next phase of growth. This growth will come from expanding our current distribution network and building further on our productivity. We are targeting to grow our Business by 5 times and achieve a customer base of over 5 million in the next 5 years.``Explaining the company`s focus on driving efficiency, Jain said, ``We have built an efficient business, and will continue to drive this as an important focus area. The board has approved the infusion of Rs 2.40 billion additional capital in 2010-11 to fund the next phase of growth.``ING Life India`s total premium income (TPI) has grown CAGR 40% in the last 5 years, closing at Rs 16.43 billion for FY 2009-10. Its asset under management has shown a significant growth at CAGR 66%, and the company now manages over 45 billion. ING Life India`s declining opex/TPI ratio is a result of its sharp focus on managing its business efficiently. Declining opex/TPI ratio is a key indication of efficiency in life insurance business. ING Life India today has presence across 232 cities. The company is capitalized at over Rs 12 billion, with a solvency margin of 2.21 times.