Private insurer IndiaFirst Life Insurance, which has a paid up capital of Rs 430

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crore, is planning to infuse another Rs 120 crore to fund its expansion plans and to maintain solvency margin.

"We are planning to infuse Rs 120 crore in the first quarter (April-June) taking the total capital to Rs 550 crore to fund our expansion plans, including setting up of Financial Planning Centres, and solvency capital requirements," IndiaFirst Life Insurance Managing Director and CEO P Nandagopal said here.

Further capital infusion depends on the growth of business, he added.

The focus of the 17-month-old company in FY 12 will mainly be on maintaining cost and increase productivity that will help it to reach the break even target within five years of operations.

"We are one of the most cost efficient insurance firms in the country with an operating expense ratio of 19 per cent. We are planning to bring it down further to around 15 per cent in FY 12," he said.

The private insurance firm collected Rs 704 crore premium from new business and is planning to double this in the current financial year, Nandagopal said.

He said the insurer, which has 1,200 direct workforce, is planning on a marginal addition of another 300 in FY 12.

IndiaFirst Life Insurance is a joint venture between two of India's largest public sector banks - Bank of Baroda and Andhra Bank -- along with the UK's leading risk, wealth and investment company, Legal & General.