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United India posts 14 % rise in premium income

— PHOTO: BIJOY GHOSH

RETAIL SECTOR DRIVES GROWTH: G. Srinivasan (left), Chairman and Managing Director, United India Insurance Company, with A. Asthana, Director and General Manager, addressing a press conference in Chennai on Monday.

CHENNAI: Public sector insurer United India Insurance Company recorded a gross direct premium of Rs. 4,277.77 crore in 2008-09 against Rs. 3,739.56 crore in the previous year, a growth of 14 per cent. Business accretion of Rs. 538.21 crore was the highest in the industry which has 16 players and two solely in health insurance.

Addressing presspersons here on Monday, G. Srinivasan, Chairman-cum-Managing Director, said the company reversed the trend in 2008-09 and increased its market share to 13.98 per cent from 13.33 per cent. He said this was the first time a public sector insurer had increased its market share amidst stiff challenges from private players after the market was opened up.

Mr. Srinivasan said the company had grown in all its geographical regions and in all classes of business. The growth had been driven by retail sectors such as health, motor and other miscellaneous lines.

The company could come up with improved results which saw its underwriting losses come down to Rs. 546.79 crore in 2008-09 from Rs. 853.35 crore in 2007-08 due to the measures adopted to offset the impact of the troubled investment climate. As a result, he said, the company could register a profit after tax of Rs. 476.05 crore against Rs. 631.62 crore. Investment income had dropped to Rs. 1,048.56 crore from Rs. 1,517.65 crore.

Total investments went up to Rs. 8,369 crore from Rs. 8,042 crore but the yield on mean fund basis fell to 12.25 per cent from 19.79 per cent in a weak market. The net worth went up to Rs. 3,628 crore from Rs. 3,246 crore, a growth of 11 per cent.

The board has recommended a dividend of Rs. 96 crore on a paid-up capital of Rs. 150 crore to the Central Government. Mr. Srinivasan said the company would continue to focus on retail lines and reach a premium of Rs. 4,800 crore in 2009-10.

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