IDBI Fortis Life eyes over 74% rise in premium in FY10

IDBI Fortis Life Insurance Ltd expects premium incomes to rise over 74% in 2009-'10, a top official said on Wednesday.

IDBI Fortis is a joint venture between Belgian insurance group Fortis and Indian banks IDBI Bank and Federal Bank.

"In the first half of the year (fiscal) we have seen a 74-per cent rise in premium incomes. We expect a similar trend to continue in the next half," said GV Nageswara Rao, managing director and chief executive.

In 2008-'09, the insurer that begun operations on March 2008, earned Rs3.28 bn from premium income. It also hopes to break even in the next 6-7 years, Rao said. Its current paid-up capital was at Rs4.5 bn.

Life insurance penetration in India is about 4% of GDP, in terms of total premiums underwritten in a year.

India's current laws cap foreign investment in insurance at 26% and prevents insurers from entering the stock market in the first 10 years of their operations in the country.

The parliament is considering a law to raise the foreign-investment limit to 49%.