HDFC ERGO General hopes to breakeven by FY12

HDFC ERGO General Insurance, which expects to chart 35 per cent growth in premium collections in 2010-11, aims to achieve breakeven next fiscal.

"We expect to breakeven in 2011-12," said HDFC ERGO General Insurance Managing Director Ritesh Kumar.

At the same time, the company expects 35 per cent growth in the premium collections during the current fiscal. "We would be happy to grow at 30-35 per cent during the current fiscal," he said.

Set up in 2002, HDFC Ergo General Insurance is a 74:26 joint venture between housing finance entity HDFC Ltd and German insurance firm ERGO.

The company collected a Rs 928 crore premium in 2009-10, a growth of 165 per cent in comparison to the previous year.

Asked about the reasons for presenting a conservative outlook for the current fiscal, he said it was on account of a high base in the previous year. However, the growth in premium collection in absolute terms would be similar to last year.

In the first two months of the current fiscal, the company has mobilised a premium of Rs 235 crore, compared to Rs 136 crore in the same period last fiscal, translating into a growth of 73 per cent, he said on the sidelines of HDFC ERGO's Power Industry Forum.

Asked about capital infusion, Kumar said the company pumped in Rs 215 crore last fiscal and it will continue to invest more as and when required.

Last month also, the company infused Rs 45 crore, he said.