New India Assurance targets net profit of Rs600 cr this fiscal

New India Assurance targets net profit of Rs600 cr this fiscal Bhubaneswar: The largest general insurer New India Assurance has targeted a net profit of Rs 600 crore this fiscal and planned expansion of its foreign operations in 2013-14.

"The company is expected to make a net profit of about Rs 600 crore during 2012-13 recording a big jump from last year's Rs 179.31 crore," Chairman cum Managing Director of New India Assurance G Srinivasan told reporters here.

After a lean phase, the company's registered a robust third quarter results with profit after tax of Rs 517 crore as against a loss of Rs 177 crore in the corresponding period of previous fiscal, he said.

New India has registered a gross premium in India of Rs 8,542.86 crore during 2011-12 against Rs 7,097.14 crore during 2010-11, Srinivasan said, adding together with overseas premium, the company has reached a gross premium of Rs 10,073.88 crore in 2011-12.

Stating that a premium target of Rs 12,000 crore has been set by the end of the current financial year, the CMD said New India has become the first Indian non-life insurance company to cross the Rs 10,000 crore premium mark.

Maintaining that operational efficiency had increased this year with lesser claims and management expenses, Srinivasan said the company plans to increase the number of agents from around 45,000 to one lakh in two years.

The company witnessed a considerable increase in its investment income, which grew by more than Rs 300 crore to Rs 2,055 crore in first three quarters this year against Rs 1,709.14 crore reported in the same period last fiscal.

"There is increase in the investment income due to improved market conditions. We hope this trend will continue," Srinivasan said.

Describing New India as the only internationally rated direct insurer in the country, he said the company plans to foray into markets of Canada, Qatar and Myanmar to expand its foreign operations in the next fiscal.

Observing that New India's overseas operations commenced way back in 1920, Srinivasan said at present the company has its presence in 20 countries, which includes network of nine branches, seven agencies, one associate company and three subsidiary companies.

Referring to company's strengths, he said it has largest number of offices in India and abroad with trained and technically qualified staff in 1,085 fully computerised offices across the country.

The company's assets stood at a staggering Rs 42162.74 crore as on March 31, 2012.

Srinivasan said it has overseas presences countries like Japan, UK, Middle East, Fiji and Australia with strong global re-insurance facilities.

On the focus areas, Srinivasan said the company would focus on all lines of business with special emphasis on retail, SME and personal line of business. The company is going to launch its online services soon.

Referring to Odisha, he said the company is catering to the insurance needs of the people through its wide network of offices including one regional office, ten divisional offices, 24 branch offices and 18 micro offices.

There are plans to open more micro offices shortly in rural and remote areas of Odisha to reach the underprivileged, Srinivasan said.

Under Rashtriya Swasthya Bima Yojana Policy, a health insurance scheme of the central government, the company is providing health insurance cover to BPL families in five districts of Angul, Dhenkanal, Nawarangpur, Keonjhar and Jagatsinghpur, he said, adding New India has already covered 5,39,290 BPL families of the state under the scheme.

PTI