Chennai, May 13 (UNI) Insurance major United India Insurance Company Limited has achieved a net profit of Rs 631.62 crore during 2007-08, an increase of 19.5 per cent over last year.
The company, one of the largest non-life insurance service provider in the country, ended the year with a premium of Rs 3,739.56 as against Rs 3,498.77 crore in 2006-07.
The growth has come against the backdrop of detariffing by the Regulator in the Fire and Engineering Lines of Business, which has resulted in a sharp drop in rates in these segments, UII Chairman and Managing Director G Srinivasan told reporters here today.
The Directors have recommended a dividend of 84 per cent, amounting to Rs 126.33 crore for the year ended March 31 this year.
Mr Srinivasan attributed the positive results to improved claims management and administration coupled with prudent underwriting norms adopted by the company.
He said the company also leveraged the momentum of the capital market during 2007 to its advantage through careful and value-oriented investing and booking a profit of Rs 901 crore by sale while the market value of the equity portfolio has increased by Rs 1,584.14 crore during the year.
Income from investment was Rs 656.00 crore in 2007-08 as against Rs 621.18 crore last year, with the mean yield on investment at 8.04 per cent.
Mr Srinivasan said the company has increased its Net Worth by Rs 483.83 crors to Rs 2,761.86 crore. The Solvency Ratio was 3.29 at the end of the year which is significantly higher than the requirement (1.5) prescribed by the Regulator.
The Company retains its focus on the rural and social sector and has provided insurance cover to more than 2,50,000 families affected by tsunami and to nearly four lakh persons below the poverty line.
To tap the vast potential in the personal insurance line of business, the company, in addition to 1,069 operating offices, opened more than 250 micro offices to offer insurance services at rural and semi-urban centres.
United India plans to open 50 more such offices in 2008-09.
Additionally, 23 micro insurance products are now being offered through the Company's tie up with NGOs. The company has also tied up with scheduled banks and NBFCs for corporate agency and for providing insurance cover to their clients.
UNI GV SJ 1916