Future Generali eyeing Rs 4,000 cr of gross written premium

The company says its open for partners to expand distribution network in the country

Future Generali India Insurance Company Ltd, a JV between Future Group and global insurer Generali, has set a target to increase its Gross Written Premium (GWP) to around Rs 4,000 crore by end of 2019. The general insurer is planning to capitalise on Future group's retail network and add 2,000 agents and 10-15 new offices ever year to support the growth.

K G Krishnamoorthy Rao, managing director and CEO, Future Generali India Insurance Company Ltd said that the company closed 2014-15 with a GWP of around Rs 1,480 crore and reported profit of Rs 60.29 crore.

"We consider this as good performance at a time when the industry was going through tough time," said Rao, adding that till two years back the industry was growing at around 20%, and last year it was in single digits. So far, during the current fiscal industry growth was around 11%.

The general insurance industry is closely linked with economy and GDP and growth depends on how the new projects and expansion happens in the country.

"The current growth is mainly due to motor insurance, not due to new vehicles or people, but an increase in third party premium.  The growth also came from group and government schemes. These segments may push the growth, but profitability won't be much," said Rao.

The company has set a target for GWP, of 20% growth in 2014-15 and 25% growth for the next fiscal.

On capital, Rao said at present the company is well capitalised and that its paid up capital is Rs 710 crore and with profit flow back the growth plans can be achieved.

Rao who preferred not to comment about the L&T Future Generali JV talks being called off said the company is open for mergers or to join hands with companies who can add value, especially on distribution side.

He said technology will be another thrust area for the company.

At present around Rs 4-5 crore, largely renewals, are coming through online. In the next three years the company is eyeing around Rs 100 crore from online and from the referral data, which the company will get from its Future Group's retail stores.

The company is also working and want to join hands with more MFIs to increase its presence in rural parts of the country.