Hong Kong: Private sector life insurer Reliance Life Insurance has said it will turn profitable in the current financial year and is eyeing an over Rs 300-crore profit in 2011-12.

Speaking about the financial health of the company, Reliance Life said the profitability and capital efficiency of the company has improved a lot in the last 24 months.

"In 2009-10, the loss was reduced by 80 per cent over the previous year. In the last financial year, the loss was brought down even further by 55 per cent. As a result, there has been no capital infusion since August 2010," Reliance Life Insurance Executive Director and President Malay Ghosh said.

The company has also drawn plans to revisit its business strategy this fiscal by focusing on product mix, new distribution model and increased rural penetration.

On new product strategy, Ghosh said, "The strategy will focus more on protection than investment and the company has filed two new riders that gives customers the option of increasing protection at a nominal cost".

The company is awaiting regulatory approvals for the same, he said.

Reliance Life is introducing a 'family income benefit' rider, which will give a family over 12 per cent of the sum assured annually. This will be for the next 10 years or balance policy term, whichever is longer, in case of death of the life assured.
This will be in addition to the life cover under the base policy.

The company also plans to launch another rider which will ensure that in case of unfortunate loss of life of the insured, apart from the life cover under the basic plan, the family will also continue to get full survival and maturity benefits of the policy.

Reliance Life had launched its first reimbursement health policy last year. The company plans to launch another simplified policy with a fixed benefit this year.

It is also looking at launching an improved competitive credit shield product that can be bundled with loans of any type on a voluntary basis by the customer to cover the loan outstanding in case anything happens to the loanee.

(Agencies)