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Sun Life Assurance waiting to invest $ 50 million in insurance

Sun Life Assurance Company of Canada has said it has committed $ 100 million investment to India as the insurance sector is being thrown open for foreign investment through enactment of a new legislation.

The company has already developed a working relationship with the A V Birla Group under which two joint ventures have established successful businesses in India. These joint ventures are in the areas of asset management, securities brokerage and financial services.

Sensing that the insurance reforms have cleared most of the road-blocks, Sun Life Assurance has moved Vijay Singh, vice president, to Bombay. Singh will prepare ground for commencement of the company's business in India.

''We have already invested $ 50 million in these joint ventures and are committed to bring in another $ 50 million once the IRDA Bill is passed and the policy framework is ready,'' Singh, vice president-India, said.

The bill pending in the Lok Sabha provides for 26 per cent equity by overseas investors.

Sun Life Assurance, which will begin business in India with the life and general insurance, is giving a lead time of about a year after the statute is enacted. ''We hope to start here from the fourth quarter of the year 2000,'' Singh said.

He said some of the quality staff could be taken from the Life Insurance Corporation of India and the General Insurance Corporation of India. ''But we do not intend to build our business around that model.''

Through the existing joint ventures with the Birlas, Sun Life Assurance has established its base in the Indian market. ''We have already have 14 locations to do business from,'' Singh said.

Sun Life Assurance's mutual fund with the Birlas has emerged as the top performing fund in the country. The fund booked maximum returns for its investors.

UNI

Business