Thaindian News

Chennai, May 3 (IANS) Government-owned non-life insurer United India Insurance Company Ltd. is targeting gross premium of around Rs.8,000 crore for the current fiscal, up from Rs.6,376.66 crore the company earned during 2010-11.

“The market is growing at around 20 percent. Hence, we are confident of achieving our target,” company Chairman and Managing Director G. Srinivasan told IANS.

He said the company’s transformation initiative - Unisurge - is fetching good results in terms of bulk as well as retail premium.

Last fiscal, the company accounted Rs.586.63 crore from large corporates and brokers, while improving the premium collection from agency vertical to Rs. 2530.77 crore through 35,000 active agents.

United India closed fiscal 2010-11 with a gross premium of Rs. 6,376.66 crore and a net profit of Rs.130.54 crore against Rs.5,239.05 crore and Rs.707.79 crore logged in the previous fiscal.

“The net profit came down due to wage revision, enhanced pension and gratuity provisions amounting to around Rs.500 crore and increased provision of motor third party losses to the tune of Rs.400 crore,” Srinivasan said.

Last year, United India’s investment income went up by around Rs.174 crore to Rs.1,831.80 crore.

On portfolio-wise premium income, Srinivasan said fire insurance fetched Rs.805.33 crore, marine/transit insurance Rs.501.53 crore and miscellaneous Rs.5,069.80 crore.

“The re-insurance outgo is similar to last year’s figures,” he added.

Queried about portfolio-wise underwriting results (premium-claims+expenses) he said the fire insurance portfolio is positive while it is an underwriting loss in the other two business segments.

“The underwriting loss in the miscellaneous portfolio is mainly due to the increased provision for the motor third party losses,” Srinivasan said.