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Hiking the FDI limit in insurance to 49 per cent is a welcome move, P Nandagopal, MD and CEO, IndiaFirst Life Insurance, said.
According to him, with the IPO market turning stagnant, pushing for FDI in insurance might give the sector a required fillip. However, IndiaFirst does not see “any immediate requirement for capital” infusion in the company.
“As on date we are adequately capitalised. But we may require growth capital later; but not for day-to-day operations,” Nandagopal told newspersons on the sidelines of the Indian Chamber of Commerce (ICC) organised insurance summit.
With a paid-up capital of ₹475 crore, IndiaFirst is promoted by two public sector banks — Bank of Baroda and Andhra Bank — and Legal & General, a UK-based risk, investment and wealth management company.
Bank of Baroda holds 44 per cent stake in IndiaFirst, while Andhra Bank and Legal & General hold 30 per cent and 26 per cent, respectively.
According to the MD, the company is targeting to break even around November this year. “Maybe we can break even by November this fiscal,” he said.
Currently, around 80 per cent of the company’s business is through the bancassurance model (the sale of insurance and pension products through a bank) while the remaining 20 per cent is through agencies.
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