Bharti Axa GI hopes to cut underwriting losses in FY14
Mumbai: Bharti Axa General Insurance is hopeful of trimming its underwriting losses in the next financial year and increasing the investment income, a top executive said on Monday.
"We hope that underwriting losses will be lower in the next financial year and we are on track to break even by December 2014," Bharti Axa General Insurance Chief Executive Amaranath Ananthanarayanan said here.
According to the company, the underwriting losses came down to Rs 176 crore in the first nine months of current fiscal as against Rs 187 crore in corresponding period year-ago.
Ananthanarayanan added that the data points were not comparable for the two periods due to changes in the motor pool norms.
On investment income, he said it was likely to be better in 2013 compared to 2012.
"We expect investment income to grow by around 15 percent in 2013," Chief Financial Officer Sampath Kumar said.
Most general insurers are making profit out of their investment income with no contribution from core operations due to losses incurred in the third-party motor pool business.
As per the industry, this is likely to change in the next two years with the implementation of declined motor pool system along with better pricing in other segments.
On growth, Ananthanarayanan said the company aims to attain growth of 35 percent in revenue next financial year.
Bharti Axa General Insurance is the joint venture between Bharti Enterprises and French firm Axa group in which 74 percent stake is being held by Bharti group.