Tata AIG net profit up 11%

Tata AIG General Insurance Company has posted a net profit of Rs 13.6 crore for 2005-06 compared with Rs 12.2 crore for 2004-05 thus recording 11 per cent growth. Profit before tax was Rs 26.9 crore.

Premium income grew to Rs 606 crore from Rs 469 crore in 2004-05, recording 29 per cent growth. Out of the total premium, the consumer lines business accounted for 56 per cent and corporate business accounted for 44 per cent.

The company continues to develop additional web-enabled products for policy booking and issuance at its points of sale.

It has launched Webpos - a web-enabled policy issuance system for issuance of motor policies and proposes to add further products to this system during 2006-07.

During 2005-06, Tata AIG General issued 5,95,000 policies settled 72,456 claims amounting to Rs 315.5 crore (increase of 88 per cent over the previous year). The company has further enhanced its claim settlement performance with a claim settlement ratio of 91 per cent.

It has settled 2,700 claims amounting to a total pay-out before reinsurance of Rs 140 crore resulting from the Mumbai floods.

Tata AIG General currently has 36 offices in 27 cities and sells its products through diverse distribution channels consisting of agents, brokers, direct/ telemarketing, bancassurance, worksite marketing, affinity partners and direct customer contacts.

Dalip Verma, managing director, Tata AIG General Insurance Company, said, "Overall, we are pleased with the results which reflect good premium growth in all lines of business. We maintain a disciplined approach to underwriting which is reflected in the loss ratios being the lowest in the industry."