Tata AIG hopes to log underwriting profit this fiscal
Mumbai: Private sector general insurer Tata AIG is likely to log in an underwriting profit, excluding the third-party motor pool, in the current financial year, a top company official has said.
"We are likely to post an underwriting profit in the current financial year if we exclude the third-party motor pool," company's president for insurance M Ravichandran told PTI.
According to the company, it had an underwriting profit of Rs 52 crore in the first nine months of the current fiscal that excludes the third party motor pool segment.
The general insurer had posted an underwriting loss of Rs 5 crore in FY'12 and Rs 40 crore in FY'11 (both excluding the motor pool business).
However, the company has not revealed the losses on the motor insurance in the past or the likely loss in the current fiscal.
The purpose of the third-party declined motor pool is to ensure availability of third-party motor cover to commercial vehicle owners at reasonable prices.
"Our focus is to make every segment a profit centre," Ravichandran said, adding that the company is hopeful that losses from the third-party motor pool will come down for the industry.
Referring to capital infusion in the current fiscal from promoters, the Tata Group-controlled company said parent firms had infused Rs 55 crore in the first nine months of the fiscal to support business growth.
While capital infusion in FY'12 stood at Rs 85 crore it was Rs 65 crore in FY'11.
Ravichandran, however, said the company would not require much capital support next fiscal as it hopes to mobilise money to fund future growth internally.
Tata AIG had a gross written premium collection of Rs 1,540.95 crore in April-December period this fiscal, a growth of 26 percent over the corresponding period last fiscal.
Tata AIG General Insurance is a joint venture between the Tatas and the US-based insurer AIG in where the Indian conglomerate holds the majority 74 percent stake.