In an interview with TOI, Hans de Kuiper, global CEO, Ageas Group, said India remains a priority market where the focus is firmly on scaling up existing operations rather than contemplating exits.
The insurer is currently ranked 12th in life insurance (Ageas Federal Life) and 15th in non-life insurance (Royal Sundaram General), and, along with its partner Federal Bank, is targeting to break into the top 10 in life insurance.
“India is a key growth market for us and our priority is to expand our existing business rather than looking at exits,” he said, adding: “We are growing faster than the market and remain open to inorganic or new distribution opportunities to accelerate this journey.”
He stressed that “as long as returns are attractive, we will continue to deploy capital to support growth,” while ruling out listing plans in the near term, noting, “We are long-term investors and are not thinking about public offerings or exits at this stage.”
“On distribution, De Cuyper said bancassurance remains central to the group’s strategy in India despite regulatory concerns over mis-selling. “Bancassurance remains a strong and relevant model, as banks are well placed to provide integrated financial advice,” he said, while acknowledging that “concerns about mis-selling are valid, but they are not limited to bancassurance.”High valuations in India’s insurance sector reflect underlying rather than excess growth potential, De Cuyper said. “The high multiples underscore the significant growth opportunity in the market,” he said, adding that over time “margins are expected to benefit from scale given the fixed cost nature of the business,” along with a shift towards higher margin protection products. He also highlighted the “significant rise” in the superannuation and superannuation sectors, and said the group would be open to entering this space “if the right opportunity arises”.
“Welcoming the regulatory changes, he said the shift to risk-based capital and IFRS, especially IFRS 17, is a “positive step” that will “improve transparency and provide a clearer view of the fundamental performance of long-term insurers.”Regarding products, he said unit-linked insurance plans are evolving with better regulatory oversight. “ULIPs are an evolving sector and it is encouraging to see regulation moving in the right direction,” he said.Regarding commissions, he called for a balanced approach to regulation.