Bajaj Allianz to boost capital base by 5 bln rupees

MUMBAI, June 12 (Reuters) - Bajaj Allianz Life Insurance Co Ltd plans to scale up its capital base by 5 billion rupees during the current fiscal as demand for insurance increases in the fast growing economy, a senior official said on Thursday.

Its current capital base is 12.10 billion rupees and the company earned a premium income of 97 billion rupees during the last fiscal, Chief Executive Officer Kamesh Goyal said.

The premium income includes fresh premium income of 67 billion rupees and more than 90 percent of its business comes from unit-linked insurance plans (ULIP), he said.

The company is a joint venture between India's No.2 motorcycle maker Bajaj Auto (BAJA.BO: Quote, Profile, Research) and German insurer Allianz SE (ALVG.DE: Quote, Profile, Research).

The German firm holds 26 percent in the JV, the maximum a foreign firm can hold in an Indian insurance company. The new investment would be made in proportion to their stakes, he said.

Bajaj Allianz gets about a quarter of its business through corporate agency tie-ups, Goyal told reporters at a press meet to announce a distribution deal with travel services firm, Thomas Cook (India) Ltd (THOM.BO: Quote, Profile, Research), which has 160 branches across India. (Reporting by Kaustav Roy and Jasudha Kirpalani; Editing by Harish Nambiar)