LONDON, May 16, 2001 (PRIMEZONE) -- Old Mutual's (LSE:OML) life assurance joint venture in India, OM Kotak Mahindra ("OMKM') today announced the launch of its first products for the Indian Market. The launch date was chosen to coincide with the 156th anniversary of the founding in Cape Town South Africa of Old Mutual plc, one of its two shareholders.
In the first instance, the Company will be offering three products - OM Endowment Plan, OM Moneyback Plan and OM Insurance Bond.
- OM Endowment Plan provides basic life cover with a significant investment content. - OM Moneyback Plan covers the life of the policyholder but with a difference. Every five years on the policy anniversary the policy will pay out a guaranteed cash sum. On maturity, the policyholder will get the benefits guaranteed plus declared bonus accruals. In the event of death, the beneficiary will receive the entire sum assured plus a guaranteed increase in benefits initially set at 7% per annum. - OM Insurance Bond provides life cover through a single premium policy. The plan operates as a fixed deposit that aims to double the initial investment at maturity. In the case of death, the beneficiary collects a specified death benefit. The OM Insurance bond will be an alternative for investors to bank or finance company deposits and is particularly suitable for individuals who seek to invest a lump-sum.
The products will offer policy enhancements such as Term Cover and Accidental Death Benefit designed to enhance value for customers.
OMKM has opened branch offices in Mumbai and Delhi. Offices in Bangalore and Calcutta are to follow shortly. The company will be expanding its operations throughout the country and plans on having offices in 13 cities by March 2002.
In the past few months OMKM has recruited and trained a specialized distribution force of life assurance advisors to sell its policies and further recruitment is planned over the next two years. The company places a particular emphasis on training, and has brought in resources from Old Mutual in South Africa to assist in this process. In addition to distribution via its own tied agents, OMKM plans to use corporate agents, insurance brokers (when allowed) and eventually, the Internet to distribute its products.
Notes to Editors
OMKM is a joint venture in India between Kotak Mahindra Finance Limited and Old Mutual plc. The Kotak group is one of India's largest financial services groups, offering a wide range of financial products and services. With a group net worth of over Rs.7,500 million, it caters to a customer base of over 500,000 and has joint ventures with leading international players such as Goldman Sachs, for investment banking and brokerage and Ford Credit International for automobile finance.
Old Mutual plc is an international financial services group based in London, with expanding operations in life assurance, asset management, banking and general insurance. Old Mutual is listed on the London Stock Exchange and also on the Johannesburg, Namibian, Malawi and Zimbabwe stock exchanges. It has total assets under management, as of December 31, 2000, of US$ 252 billion.