R-Cap Q1 consolidated net up 30%

Reliance Capital, part of billionaire Anil Ambani's group companies, on Saturday said its consolidated net profit for the quarter ended June 30 increased 30 per cent from a year ago to Rs 45 crore. The earnings growth was driven by higher profitability of the life insurance arm and increase in revenues of commercial finance and general insurance businesses.

The company's consolidated total income was at Rs 1,676 crore in the first quarter, up 12 per cent from the corresponding period last year. Its net worth increased 50 per cent to Rs 11,754 crore at the end of June. The total assets of the company rose 15 per cent to Rs 37,555 crore. The investment portfolio of listed equities at cost was estimated at Rs 1,839 crore.

The company clarified it has not raised any fixed deposits from the public.

INSURANCE BUSINESSES
Reliance Life Insurance's profit more than doubled to Rs 19 crore as the company strengthened its position in the private sector life insurance industry with a market share of five per cent. The firm's total premium, net of reinsurance, was Rs 810 crore in the first three months this year.

The first quarter consolidated earnings of Reliance Capital include consolidation of its 38 per cent stake in the life insurance company. The insurance company had a distribution network of 1,230 offices at the end of June, 2012.

It also reduced the number of its agents by 33 per cent year-on-year to 120,000 based on the performance.

Reliance General Insurance, which has a market share of over eight per cent, incurred a loss of Rs 20 crore on account of provisioning for the third party motor claim reserves. Its gross written premium, however, increased to Rs 564 crore during the quarter from Rs 526 crore a year ago.

OTHER BUSINESSES
The commercial finance business' total income expanded by 19 per cent to Rs 495 crore, while its profit before tax increased by 13 per cent to Rs 66 crore driven by growth in interest income.

In asset management business, the pre-tax profit fell by 17 per cent to Rs 59 crore as income declined by 9 per cent to Rs 152 crore due to reduced capital market activities.