Max India sees 6-bln-rupee loss in FY09 in insurance biz

NEW DELHI Oct 23 (Reuters) - Max India Ltd (MAXI.BO) is likely to post a loss of 6 billion rupees in its life insurance business in the current financial year as it ramps up investment in expanding the unit, its chairman said on Thursday.

The business, which contributes about 84 percent of Max's revenue, is likely to break even in March 2012 quarter, Analjit Singh told an investors conference call, a day after publishing its July-September quarter results.

Max India saw its net profit for the quarter falling 30.6 percent to 117.3 million rupees from 169.2 million rupees in the year ago period. Net sales for the quarter rose 41 percent to 1.02 billion rupees from 726 million rupees a year ago.

"This is because ramp up taking place in Max New York Life (MNYL) and the amount of investment is increasing," Singh said.

"We have invested more in MYNL in the last six months than we have done in any other previous six months period," he said.

Max India will also roll out its health insurance business in next 12 months. In July, the company formed a health insurance joint venture with UK's Bupa Finance Plc for the business.

"We are on the eve of submitting our application to IRDA (Insurance Regulatory and Development Authority) and we hope to be out in the field about 12 months from now," he said. (Reporting by Rakesh Sharma; editing by Sunil Nair)