In a release from BusinessStandard.com, an online publication of business news in India, it was reported that Bharti AXA General Insurance, an Indian insurance provider, predicts its turnover will increase 70 percent in the next fiscal year, 2010-2011 as a result of distributing its products through microfinance institutions (MFIs). While it is cited that more than 55 percent of the company’s premium revenue comes from motor insurance, it predicts expansion in the microinsurance sector will boost overall revenue.
Bharti AXA has teamed up with two Indian MFIs, Anjali Microfinance and Arohan Financial Services, to distribute its products, particularly in the rural regions of East and Northeast India.
“Micro Insurance products reach only two per cent of the rural population in the country, and there is a huge potential market that needs to be tapped. We believe in exploring the potential of the untapped markets like Orissa [Eastern India]. Through tie-ups with micro-finance institutions and NGOs (non-governmental organizations), we intend to break through this market, as we are well equipped to handle a large number of customers,” says Amarnath Ananthanarayan, chief executive officer at Bharti AXA.
About Bharti AXA General Insurance:
Bharti AXA Life is a life insurance provider that was started in 2006. It consists of the Paris-headquartered AXA Group, and Bharti Enterprises, an Indian business group with interests in telecom, agricultural business, financial services and retail. The joint venture has a 74 percent stake held by Bharti and 26 percent stake held by AXA Asia Pacific Holdings Ltd. (APH).
About Anjali Microfinance:
Anjali Microfinance is a microfinance institution, established in 2010, with a focus in eastern, northeastern and central India. It offers microcredit loans and microinsurance packages. It primarily loans to women and cites a mission statement of gender empowerment.
Anjali Microfinance does not report to the MIX Market.
About Arohan Financial Sevices:
Arohan Financial Services is a microfinance institution (MFI) based in Kolkata, India. It offers loans and life insurance primarily in urban areas of eastern India. It was founded in 2006. According to the MIX Market, the microfinance information clearinghouse, Arojan had USD 8.7 million in total assets, a USD 8.2 million gross loan portfolio and 86,273 borrowers as of 2009. In the same year it reported 3.53 percent return on assets (ROA and 14.93 percent return on equity (ROE).
By Matthew Fox, Research Associate
Sources and Additional Resources:
BusinessStandard.com: Bharati AXA Eyes 70 percent Surge in Turnover:http://www.business-standard.com/india/storypage.php?autono=399340
Bharti AXA Life Insurance:http://www.bharti-axalife.com/index.aspx
MicroCapital Universe: Anjali Microfinance:https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Anjali+Microfinance
MicroCapital Universe: Arohan Financial Services:https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Arohan
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