Mumbai, July 28 (IANS) Private life insurer Reliance Nippon Life Insurance Company Ltd is targeting to expand its distribution network by acquiring a public sector bank promoted life insurer, a top company official told analysts on Friday.
The top management of Reliance Capital and its subsidiaries spoke to analysts a day after the company declared its results for the first quarter ending June 30, 2017.
“We also plan to expand our distribution network through M&A (merger and acquisition) opportunities with PSU (public sector undertaking) bank-owned life companies,” Ashish Vohro, CEO of Reliance Nippon Life, told analysts.
Queried about the life insurer’s individual agency-based distribution model, he said there is substantial non-bancassurance business and many players are revamping their distribution model.
“Clear turnaround has been achieved in the operations in Q1 FY18. There is a sharp improvement across all Key Performance Indicators, including new business and persistency,” Vohra said.
Anmol Ambani, Executive Director, said: “We are on track on the process of demerger and independent listing of Reliance Home Finance over the next few months.”
He said the listing of Reliance Nippon Life Asset Management and Reliance General Insurance would happen in FY18 and would unlock substantial value for all stakeholders.
Ambani said the total income of Reliance Capital for the first quarter increased by 33 per cent to Rs 49 billion, and profit rose by 15 per cent to Rs 2.4 billion.
“In terms of operating performance, all businesses have achieved significant growth in topline and a strong improvement in profitability,” he added.
The top management of the company told analysts that Reliance Capital will treble lending book in small and medium enterprises and consumer finance to Rs 50,000 crore in the next three years.
Similarly, the housing finance company would also reach an asset under-management (AUM) of Rs 50,000 crore in three year’s time.
According to officials, Reliance Capital will leverage technology and digital platforms in a big manner for accelerated growth in the lending business and simultaneously will focus on underserved tier 2 and tier 3 towns and cities for achieving targeted growth in the lending business.
On Thursday, Reliance Capital reported a 15 per cent rise in consolidated net profit at Rs 238 crore in the first quarter. Its net profit stood at Rs 207 crore in the year-ago period.
Total income stood at Rs 4,857 crore for the quarter as against Rs 3,663 crore in the same quarter a year ago.
As on June 30, 2017, the net worth of the company stood at Rs 16,777 crore, an increase of seven per cent.
Meanwhile, the Reliance Capital scrip shot up to touch a high of Rs 713.90 in BSE on Friday.
Post Source: Ians feed