New India set to double growth rate

India's largest non-life insurance company, the New India Assurance Company, has changed its operational strategy - moving away from rather a cautious approach to a more aggressive one - as it aims to more than double its growth rate in the current financial year.

The New India Assurance has targeted global business income of over Rs 5,640 crore in 2005-06. This reflects an overall growth rate of 10.64 per cent as against last year's actual growth of 3.69 per cent.

"We were very cautious in the past. This year, we will be more aggressive," said R Beri, chairman-cum-managing director, the New India Assurance.

The company has targeted domestic premium income of Rs 4,700 crore in 2005-06, reflecting a growth rate of 11.61 per cent. Last fiscal, its domestic business crossed Rs 4,200 crore, registering a growth of just 4.08 per cent.

Similarly, from its foreign operations, New India is aiming to mop up Rs 946 crore in premium income as against Rs 892.35 crore in 2004-05, a targeted growth of 9 per cent.

"Since the beginning of the fiscal till August 31, we have registered a growth rate of 9.8 per cent," said Beri.

The company is also adopting a more aggressive stance in international operations, as it aims to open one new branch every year, taking business income from foreign operations to Rs 1,500 crore by 2009-10.

Over the last couple of years, New India has preferred to adopt a more cautious approach as compared to its peers in the industry. Last year, Beri had said the company was consolidating its position, preferring to look at its bottomline as it exercised prudent underwriting.

Meanwhile, New India has witnessed a 31.85 per cent decline in its net profit to Rs 402.23 crore, on the back of higher tax liability. This follows profit from the sale of equity investment amounting to Rs 611 crore, which, according to the Income-Tax authority, had to be taxed.