Reliance Capital inches up on good performance of general insurance unit in Q1

The announcement was made during trading hours today, 12 July 2013.

Meanwhile, the S&P BSE Sensex was up 257.86 points or 1.31% at 19,933.92.

On BSE, 8.93 lakh shares were traded in the counter as against average daily volume of 11.08 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 1.41% at the day's high of Rs 384.40 so far during the day. The stock lost as much as 1.46% at the day's low of Rs 373.50 so far during the day. The stock had hit a 52-week high of Rs 508 on 7 January 2013. The stock had hit a 52-week low of Rs 297.05 on 26 March 2013.

The stock had outperformed the market over the past one month till 11 July 2013, surging 15.85% compared with the Sensex's 2.78% rise. The scrip had also outperformed the market in past one quarter, jumping 19.54% as against Sensex's 6.12% gain.

The large-cap company has equity capital of Rs 245.63 crore. Face value per share is Rs 10.

Reliance General Insurance Company's (RGIC) health insurance premium surged 110% to Rs 169 crore in Q1 June 2013 over Q1 June 2012. RGIC, part of Reliance Capital, is one of India's top private sector general insurance companies with gross direct premium of over Rs 2010 crore for the year ended 31 March 2013. It offers a comprehensive range of products under motor, health, commercial lines.

Mr. Rakesh Jain, CEO, RGIC said, "Our strategy to change business and product mix, optimise use of technology, manage costs and expand our retail agent base has helped us achieve a significant turnaround in performance. We are focusing on non-motor insurance segment, individual agency and online channels to drive our growth, and have reduced our dependence on motor insurance as compared to the corresponding quarter last year. We are targeting to add over 3,000 agents to reach 15,000 retail agents by end of this fiscal".

RGIC expects to achieve a positive bottom line in Q1 June 2013, as against net loss in the corresponding quarter last fiscal. RGIC had already posted positive bottom line in Q3 December 2012 and Q4 March 2013 through sourcing of quality business, better pricing in motor and health insurance segments, and enhanced retail agent force, RGIC said in a statement.

Reliance Capital's consolidated net profit fell 19.5% to Rs 265 crore on 13.8% decline in total income to Rs 1691 crore in Q4 March 2013 over Q4 March 2012.

Reliance Capital, a part of the Reliance Group, is one of India's leading private sector financial services companies.

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