New India Assurance sees its global premium growing to Rs 25,000 cr in FY18

Insurer targets 25% growth in overseas operations in 5 years, IPO expected in 6-8 months

New India Assurance Co Ltd is targeting its global premium to go up to Rs 25,000 crore in 2017-18, anticipating the year could offer better growth. The company said that it is also looking at increasing the contribution of its overseas business from the current 18 per cent to 25 per cent in next five years.

G Srinivasan, chairman-cum-managing director of the company said that the company is in sunc with its plans to reach a global premium of Rs 21,000 crore by the end of the current fiscal, and its initial public offering (IPO) is expected to be ready in six to eight months.

"We are expecting the global premium for the year to be around Rs 25,000 crore in 2017-18," said Srinivasan. Process for the proposed IPO has been started and the company expects that going public, which as per the direction of the government, would increase the profile and branding of the company.

He added that currently 18 per cent of its business comes from overseas and the company is targeting to increase it to 25 per cent of the business in next five years. It already has a presence in 28 countries and has a license to start operations in Myanmar. Besides, the company is looking at starting operations in Dubai, in the Middle East. At present the company as presence in regions and countries including UK, Middle East, Japan, Australia and Newzealand, among others. With the expansion, it will have presence in 35 countries in five years, he added.

In 2017-18, the company will add another 300 more micro offices along with existing 1,400 micro offices in India. It will also increase its digital selling in a big way, added Srinivasan.

As on December 31, 2016, the company has registered a nine month global premium of Rs 15,543 crore and a growth of 21.11 per cent. Further, with a profit after tax of Rs 455 crore, the company has a net worth including fair value of Rs 30,845 crore and an asset base of Rs 64,392 crore.

The company today launched New India Premier Mediclaim Policy to address the need of the market for a sum insured of Rs 15 lakh to Rs 1 crore. This product will meet the perceived needs of niche segment who are High Net-worth Individuals, he said.