Public general insurers' net up in FY13

Growth backed by growth in premium and reduction in losses

Thanks to growth in premium collection and reduction in losses, public general insurers have reported a rise in their net profits for the just-concluded financial year.

Insurers, including the New India Assurance, United India Insurance, and Oriental Insurance, have seen an increase in profit after tax figures for FY13.

Public general insurer New India Assurance has posted PAT of Rs 843.6 crore for FY13, compared to Rs 179.3 crore in FY12. The company collected total premiums of Rs 10,038 crore in India, recording a growth rate of 18 per cent over the previous financial year. The firm’s foreign operations, spread over 22 countries, generated a premium of Rs 2467 crore, up 17.6 per cent over the previous financial year.

United Indian Insurance Company has posted a growth of 36 per cent in PAT at Rs 527 core for FY13, against Rs 387 crore for FY12.

The company on Thursday announced the premium has gone up 13 per cent at Rs 9,266 crore during FY13. According to chairman and managing director Milind Kharat, the firm’s underwriting losses came down in FY13 compared to FY12.

Similarly, Oriental Insurance almost doubled its PAT in FY13, at Rs 794.7 crore.

For most public general insurers, underwriting losses have come down significantly due to the dismantling of the third-party motor pool for commercial vehicles. This was replaced by the declined risk pool from April 1, 2012.