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Reliance GI, Universal Sompo log profits in FY14

Growth has been quite diversified with focus on new segments like health, weather and liability insurance, says chief executive, Reliance GI

Press Trust of India  |  Mumbai 

Despite tough market conditions, private players General and have reported net for the last fiscal driven by higher investment income and rise in the premium collections.

While the GI posted net of Rs 64.1 crore in 2013-14 after a gap of six years, against a net loss of 92.8 crore in 2012-13, reported its maiden net of Rs 11 crore in FY14.

"Gross premium collection of General rose about 20% in FY14 to Rs 2,442 crore, which was one of the highest growth rates in the industry," its chief executive Rakesh Jain told PTI. Its premium growth was highest among the top 10 industry players, he added.

He said: "Growth has been quite diversified with focus on new segments like health, weather and liability Efficient strategy and improved agency productivity contributed to the profitable growth in FY14. We expect the high growth rate to continue in this fiscal with a focus on the bottom line."

Reliance General has a market share of 7.5% in terms of gross written premium among the private players.

"Return on investment was 8% and this is expected to significantly improve going forward as the earlier losses were on account of third-party motor pool was fully taken into consideration in FY14," Jain said.

The company sold nearly 37 lakh policies during the year with a 27% rise on a year-on-year basis.

At the end of March 2014, the investment book stood at Rs 3,843 crore and increase of 18% over the last fiscal.

Another private sector player which has turned profitable on completion of five years of its operation is General Even though the company incurred an underwriting loss of Rs 65 crore in FY14, it was investment income of Rs 74 crore which drove profitability.

Universal Sompo is a joint venture between Allahabad Bank, Indian Overseas Bank, Karnataka Bank, Dabur Investments and Sompo Insurance Inc of Japan.

First Published: Sun, July 06 2014. 14:30 IST