The Hindu : Business : Star Health posts Rs. 3.16 cr. profit

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Star Health posts Rs. 3.16 cr. profit

Special Correspondent

To write Rs. 400 cr. premium income

CHENNAI: Star Health and Allied Insurance Co. has reported a modest profit of Rs. 3.16 crore for the year ended March 31, 2008. The company has done so in the first full year of its operations itself. The company under wrote a premium income of Rs. 168.19 crore during 2007-08, as against Rs. 22.51 crore for the 10-month period in 2006-07.

Addressing a press conference here on Wednesday, V. Jagannathan, Chairman and Managing Director, said Star Health was hoping to write a premium income of Rs. 400 crore this year. “We have already written a premium income of around Rs. 200 crore this year,” he said.

Mr. Jagannathan said the company could report profit primarily because its income from investment, which was worth Rs. 9.20 crore during 2007-08. Star Health’s investment book size was around Rs. 150 crore as at the end of March 2008, he said. The CMD was confident that this year the company would make profits from under writing as well.

Once the premium income written crossed the Rs. 500-crore-mark, the company might have to bring in fresh capital, he said. At present, the company has a capital base of Rs. 108 crore. An additional fund infusion of around Rs. 50 crore would be required in that event, he added. Mr. Jagannathan said the insurance scheme for AIDS patients would be formally launched in Bangalore on August 13. The scheme for providing ‘out-patient’ cover, now operational in Tamil Nadu, would be extended to people in Delhi and Bangalore, he added.

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