Internal accruals alone enough to fund growth: Tata AIG
Mumbai: Private sector general insurer Tata AIG has said it may not require fresh capital infusion from parent companies since its internal acrruals would take care of its future growth.
"On a normal growth trajectory, our internal accruals will take care of our future growth," Tata AIG Chief Executive Kaushal K Mishra said.
Mishra said that the company would be able to fund its growth through internal accruals, but added that a growth of more than 25 percent growth in business may require funding support from its parent companies.
The company, which received a capital infusion of around Rs 55 crore last year, has shown underwriting profit in the first half of the fiscal.
It posted a 17.3 percent rise in premium collection to Rs 1,277 crore in the first half of the current financial year.
While its underwriting profit stood at Rs 19 crore in the current fiscal, against Rs 5 crore last fiscal, the combined ratio stood at 97 percent during this period.
The combined ratio is the key profitability indicator in the general insurance industry and any figure lesser than 100 indicates profitability.
Referring to product launches, he said that the company would look at segments in health and finance, among others.
"We have some ideas. We plan to come up with new product launches in health, financial space and marine cargo," Mishra said.
Tata AIG General Insurance is a joint venture between the Tata Group and the American International Group (AIG) in which Tata holds a majority stake.