'We will make our venture profitable in five years'

Star Union Dai-ichi Life Insurance (SUD), the twenty-second life insurance company in the country floated by Bank of India, Union Bank of India and Japanese insurer, Dai-ichi, is targeting a premium of Rs 500 crore within one year of its operation and a break even in five years.

Moreover, the company was working on huge recruitment drive for various posts. Besides, Dai-ichi was likely to add technology and efficiency to the joint venture.

Speaking to FE, Katsutoshi Saito, president, Dai-ichi Mutual Life Insurance Company, which was holding a stake of 26% in SUD, said "We are willing to increase our stake from existing 26% to 49% in the JV subject to the decision to be taken by the government in this direction." The regulatory authority expects the life insurance venture profitable within five years of its operation. "So, we will have to make this venture profitable too during the same period of time," says Saito.

He agreed that the conditions of the life insurance companies in Japan were not good at present thanks to the global meltdown. The country's GDP growth, which was currently pegged at -2%, was likely to further worsen during 2009-10 when another -2% of GDP growth will be added to it. So, we are also influenced by it, he says.