Bharti Axa General eyes 45% premium growth in FY13

Bharti Axa General Insurance is looking at posting 45% growth in gross premium collection in the next financial year.

"With the declined risk pool system along with the possibility of an upward revision of premium in the commercial vehicles space, we hope to post a 40-45% growth in premium collection during the next fiscal," the private-sector general insurer's CEO Amaranath Ananthanarayanan told PTI.

The Insurance Regulatory and Development Authority (Irda) had decided to dismantle third party motor pool system, replacing it with declined risk pool, effective next fiscal.

Under the third-party motor pool, all commercial third-party premia are pooled and losses arising due to commercial third-party motor portfolio are shared among all general insurance players as per their market share.

However, in the declined risk pool system, insurers will have the right to refuse a vehicle insurance, which will be subsequently insured from the declined pool.

About other focused areas in the next fiscal, Ananthanarayanan said apart from the motor space, health will be another target area for the company.

"At present, the motor and health insurance contribute about 90% of the total premium collection. Going forward, our major focus will continue in these segments."

According to Irda data, the premium collection by Bharti Axa rose around 58% in the April-February period to Rs 774 crore compared to Rs 492 crore a year ago.

The firm has earlier said it aims to cross Rs 800-crore premium collection by end of the current fiscal.

The company is a joint venture between Bharti Enterprises and Axa Group of France in which 74% stake is held by Bharti Group.