Reliance Capital expects turnaround in insurance business in 2015Mumbai: Confident about further growth in its mutual fund and securities market businesses, financial sector conglomerate Reliance Capital expects a turnaround in its life insurance business as well in 2015.Besides, the group should record faster
Mumbai: Confident about further growth in its mutual fund and securities market businesses, financial sector conglomerate Reliance Capital expects a turnaround in its life insurance business as well in 2015.
Besides, the group should record faster growth in its general insurance venture this year, Reliance Capital CEO Sam Ghosh said.
He said the 2014 has been very good for Reliance Capital in areas like mutual funds and brokerage businesses, although growth was somewhat stagnant in the life insurance segment.
"I expect the growth trends to continue in the mutual fund and broking businesses, while life insurance should see an uptick. Besides, general insurance should also see faster growth in 2015," Mr Ghosh told PTI in an interview.
Speaking about the business outlook for 2015, he said there is "a lot of positivity around and the same should result in good growth in commercial finance, SME finance and other businesses as well".
Mr Ghosh also said Reliance Capital would continue with its ongoing policy of exiting from the day-to-day operations of non-core businesses and there could be more divestments of such assets in 2015.
However, it may not be complete exits from such ventures and the group would rather focus on exiting the management of such ventures while retaining some as financial investments, he added.
On the overall economy, Mr Ghosh said the government is doing all the right things and therefore the economy should prosper and the same would reflect in the markets as well.
"The services sector is already seeing an uptick and the manufacturing is also expected to grow going forward," he said.
Reliance Capital, industrialist Anil Ambani-led business conglomerate Reliance Group's financial services arm, is also likely to soon divest more equity in its life insurance venture to its foreign partner Nippon Life (which currently holds a 26 per cent stake).
Besides, Reliance Capital also plans to rope in foreign partners for its health insurance and general insurance ventures. Taking an ordinance route, the government has permitted up to 49 per cent foreign investment in insurance.
Reliance Capital has interests in asset management and mutual funds, life and general insurance, commercial finance, equities and commodities broking, among others.
It had reported a 20 per cent increase in second quarter net profit at Rs 217 crore, helped by robust growth in mutual fund, commercial finance and general insurance businesses.
Total income rose 12 per cent to Rs 2,084 crore for the quarter ended September 30.
As it awaits final RBI guidelines to apply for a universal banking license, Reliance Capital has also roped in Sumitomo Mitsui Trust Bank of Japan as a long-term strategic partner.