Anup Rau quits Reliance after 3 years of heading the company as CEO
Reliance Life has taken some hits last financial year, market share reduced to 2% from 2.9%, and loss of revenue from unclaimed premium. Anup Rau appointed as CEO in 2013 turned in his resignation papers according to a source people who is aware of this development.
Rau succeeded Malay Ghosh who was president and executive director of Reliance Life Insurance. Rau was previously with HDFC Life heading sales & distribution. Source tells that Rau put in his papers due to some differences over business objectives. Rau was focused on improving reserves and persistency.
With increase in foreign direct investment from 26% to 49%, Indian Insurers are being squeezed by HDFC Life, Prudential, and Max. This led to a fight to get customers by providing the best experience, product, & better settlement. Few looked for short term profits while others looked for long term association. On the whole it was a messy situation and Indian Insurers had to beat down large funded organizations to get customers.
Anup Rau is not responding to calls or messages and the company has declined to comment on this issue.
Like all other insurers, Reliance Life also took a hit due to the regulatory changes and strict accounting norms.
“In accordance to the regulatory changes, as a measure of conservatism, we have consciously decided to make a one-time exceptional increase in our reserves,” said Sam Ghosh ED and group CEO of Reliance Capital during FY 16 earnings call. “Also, improvement in persistency in the non-par segment has led to increased reserving requirements.”