The Hindu : Business : United India clocks 22 per cent rise in gross premium income

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Tuesday, May 04, 2010
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Business

United India clocks 22 per cent rise in gross premium income

Corporate Reporter

Leveraging technology: G. Srinivasan (left), CMD, United India Insurance Company, with Milind Kharat, Director and General Manager,

CHENNAI: United India Insurance Company has reported a good performance for the second year in succession by clocking 22.4 per cent growth in premium income with the gross domestic direct premium at Rs. 5,239.05 crore against Rs. 4.277.77 crore in the previous fiscal.

Addressing presspersons here on Monday, G. Srinivasan, Chairman-cum-Managing Director, said the accretion of Rs. 961.28 crore to its premium for 2009-10 was the highest in the industry.

While the company earned Rs. 1,688.57 crore through investment operations (Rs. 1,086.94 crore), a growth of 55.4 per cent, underwriting losses stood at Rs. 880 crore (Rs. 540.99 crore).

The company had increased its market share despite intense competition from private and government-owned market players, Mr. Srinivasan said.

The market share stood at 14.59 per cent against 13.71 per cent in the previous year.

It issued 18.71 million policies and handled 1.17 million claims during the year.

The profit before taxation for the year under reference increased by 63.6 per cent to Rs. 822.84 crore from Rs. 502.91 crore.

The net profit after tax was up by 48.7 per cent to Rs. 707.09 crore from Rs. 476.05 crore.

95 per cent dividend

The directors have recommended a dividend of 95 per cent to the Government of India.

The company continued its focus on micro offices by adding 92 micro offices to its network. The plan was to achieve a turnover of Rs. 6,000 crore in 2010-11 with focus on retail business.

The drive to recruit more active agents, opening more service hubs, consolidating micro office network, introducing new and innovative products and leveraging technology would help the company in achieving the target, the CMD said.

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