Insurance company Max New York Life is looking to enter the mutual fund business in India. The move is part of the company's strategy to diversify from its existing line of business. The company, which is also looking to offer pension products over the next few months, may even consider an Indian listing of the entity after the next two years.
"The mutual fund market in India is diversified with only a few players so there is an opportunity and we will look at it," Max New York Life MD Gary Bennett. There are 30 players in the mutual fund industry in India and the total assets under management of the industry as on 31 March 2007 is Rs 3,26,388 crore, according to the web site of Association of Mutual Funds of India.
Max New York Life, one of the 16 private players in the life insurance business, accounts for 6% of the 30% market share that private players have. Seventy per cent market share in life insurance is still with state-owned behemoth Life Insurance Corporation.
The company, which hopes to break-even by the year 2008, is considering listing its insurance business at the domestic stock exchange. "Even though there are no immediate plans, if the business reaches a critical size, we will look at a listing of the insurance venture in India," added Mr Bennett.
The company is looking at offering pension products to private employees over the next few months. Indian regulations do not allow private companies to offer pension products to government employees.
Pension products can only be offered to employees in the private sector. Currently, HDFC Standard Life offers pension products.
The insurer is planning to introduce its distribution model in Gujarat, Haryana and Maharashtra to up its penetration in the rural market. The company has already penetrated the rural market in Punjab and has tied up with 22 co-operative banks across India.
Max New York Life currently has 1 million customers in force, 25,000 agents and 2,500 agency managers.
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