New India Q1 premium income crosses Rs 3,000 cr

Last Updated: Sun, Jul 14, 2013 09:14 hrs

Country's largest general insurer New India Assurance has notched up a gross written premium (GWP) collection of over Rs 3,000 crore in the first quarter and hopes to achieve the Rs 15,000 crore premium growth target this fiscal, despite the recent slowdown in automobile sector.

"In the first quarter, the company has crossed Rs 3,000 crore of premium income. We have seen a slight slowdown in June, mainly because of drop in automobile sales and also the ongoing slowdown," company's Chairman and Managing Director G Srinivasan told PTI on the sidelines of an event over the weekend here.

He, however, said the company is confident of achieving its Rs 15,000 crore premium income target due to a good start in the first quarter and expectation of a bounce back in the economy in the remaining parts of the year.

Growth of the general insurance industry has fallen from an average of around 18-20 per cent to around 12 per cent in June due to falling sales of automobile, impacting the motor insurance segment, which has a major share in the overall business for most industry players.

Talking about expectation of investment income this fiscal, Srinivasan said while the company hopes to book higher profit from fixed income investments this fiscal, returns from equities will depend on market dynamics.

"Current year, we certainly expect improvement in the interest, dividend income because the base investments go up. So, we expect an increase in fixed investment income. In case of equity investment, it is a function of the market," the Chairman said.

He also said the general insurer hopes to achieve underwriting breakeven over the next three years. The company plans to increase its agency force to one lakh agents by FY'15.

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