LIC HFL Financial and United India Insurance ties-up

United India Insurance Company Ltd and LIC HFL Financial Services Ltd, a fully owned company of LIC Housing Finance Ltd, on Monday announced a strategic tie-up to distribute non-life insurance products at an event in Mumbai on Monday.
As per the terms of agreement, LIC HFL Financial Services will undertake non fund-based activities like marketing of housing loans, insurance products, credit cards, mutual funds and other third-party products. The company has established marketing units at 33 different centres across the country.
RR Nair, director and chief executive officer (CEO) of LIC Housing Finance, said, “Our main focus is on retail and we aim to provide innovative products at economic prices.”
Shobana Murli, CEO of LIC HFL, announced their stated goal was to reach 20,000 homes this financial year.
The government-owned United India is one of the fastest growing non-life insurance majors in the country, second in terms of business net worth (which is currently pegged over Rs 4,000 crore) and solvency margins (3.41 per cent). The company posted a net profit of Rs 707.79 crore in 2009-10.
As per the current norms of the insurance regulator, a company is permitted only two tie-ups – one with a general product firm and another with a life insurance company.
LIC HFL Financial Services can already boast of being the frontrunner in terms of disbursements and sanctions for home loans for 2009-10. Currently, the firm receives 10-12 per cent of its business through corporate agents. A LICHFL Financial Services official said that the company expects to achieve business worth Rs 1,000 crore within a year of its launch.
”For the financial year 2009-2010, the firm saw a net worth of Rs 3,000 crore, with a target to touch Rs 6,000 crore by FY 2010-2011. Of this, Rs 1,000 crore would be attributed to new business generated by this association.” said Nair. “The non-life insurance market is growing in tandem with the economy. Great growth prospects are also seen in the retail segment,” he added.