Liberty Videocon insurance eyes Rs 100-cr premium in 1st yr
Chennai: Private sector insurer Liberty Videocon General Insurance is eyeing Rs 100-crore gross written premium in its first year of operations, a top official said on Friday.
Liberty Videocon General Insurance Company is a joint venture between Videocon Industries Ltd and Liberty Citystate Holdings Pte Ltd, a group company of US-based Liberty Mutual Group.
"We are looking at Rs 100-crore Gross Written Premium (for financial year ending March 2014). We are not looking at an aggressive growth. We will be investing in building our own infrastructure ... To build the company ...," Roopam Asthana, CEO and Director of the company told reporters here.
The company, which began its operations early this year, currently has presence in eight locations and intends to increase it to 25 in 2014.
"By next (calender) year, we hope to grow to about 25 branches. We are looking at a two-fold growth in our topline. A year after that we hope to have 45 branches...," he said.
Started with an initial capital of Rs 350 crore from its two promoters, he said the company hopes to achieve break even in six years.
"When we reach PBT (profit before tax) of Rs 1,200 crore (we should break even). We will have to infuse close to Rs 600 crore of capital (to break even in six years time)," he said.
Observing that the company was experimenting with introduction of new technologies, Asthana said it had tied up with car dealers to offer a unique service by allowing car users to "pay insurance as you drive" using a telematics device installed in their cars.
"We will be one of the first (insurance providers) to offer this service. We are currently offering this service in Mumbai and Ahmedabad. To start with, we are looking at offering this service in 1000 cars in one year...," he said.
According to him, customers with the "telematics" device installed in their cars would have the option to pay the insurance as per their daily usage of their vehicle.
On revenue generation, he said 60 percent of its revenues would be contributed through motor and health insurance and the remaining from "other" segments.