Royal Sundaram posts FY13 net profit of Rs 55 cr

The insurer also infused additional capital of Rs 40 crore

Private general insurer Royal Sundaram Alliance Insurance Company posted a Profit after Tax (after absorption of pool loss) of Rs 54.67 crore for financial year 2012-13, seeing a growth over last year. In 2011-12 period, the company had posted profits (after absorption of pool losses) of Rs 22 lakh. The insurer has also infused additional capital of Rs 40 crore.

The company has written Rs. 1,560 crore of premium income during FY13. The solvency margin is 1.44 times as against the stipulated 1.40 times. Ajay Bimbhet, Managing Director, said, “Despite the tough external factors around the economy last year, Royal Sundaram has been able to deliver positive performance. We took a conscious decision from an underwriting perspective to assess risks more closely and focus on profitable growth. I am happy that our efforts have helped us to achieve underwriting profits too during this year.”

In terms of the strategy going forward, he said that they would continue their focus in growing retail business, with greater emphasis on retail health and SME business. Bimbhet added that they will also maintain their prudence in underwriting commercial business on profitable lines.

Royal Sundaram absorbed Rs 164.1 crore towards the Motor Pool losses in FY13 as against Rs. 222.49 crore in FY12. The total paid up capital of the Company is currently Rs 315 crore. The general insurer posted a Profit Before Tax (after absorption of pool loss) of Rs 63.26 crore for FY2012-13, as compared to a loss of Rs 45 lakh in 2011-12.