Royal Sundaram insurance grew 45 pc for FY 05-06

Mumbai, May 10: Retail and commercial insurance major Royal Sundaram Alliance Insurance Company Ltd today said that the company's premium income for the FY 2005-06 zoomed up to Rs 461 crore as compared to Rs 335 crore during the same period in the previous fiscal, an increase of 38 per cent.

The company's profit before tax for the same period was Rs 10 crore.

In the retail sector, the company has achieved a gross profit of Rs 293 crore for the financial year (FY) 2005-06, a growth of 45 per cent. Similarly, the commercial insurance sector has contributed Rs 168 crore the company's total income, a growth of 27 per cent.

During FY 05-06, the market share of Royal Sundaram has grown to 2.2 per cent of the overall market share.

Commenting on the the performance and achievement of profit, Royal Sundaram Managing Director Antony Jacob said ''The fiscal year 2005-2006 has been a winning year for the company. We faced various challenges like the Mumbai floods, but overcame these challenges and recorded a profit better than what we achieved in the last fiscal.

We have successfully built relationship with over 1.3 million customers so far and our growing client base is a testimony to our efforts at providing quality service and need-based products.'' The motor insurance segment, one of the largest portfolios of Royal Sundaram, has contributed 51 per cent of the total profit.

Among the other portfolios, fire contributed 20 per cent, personal accident and health five per cent and 11 per cent respectively, while engineering six per cent and marine four per cent.

The company offers Livestock Insurance, Health Insurance, Micro Enterprise Insurance and rural specific products. Apart from these, Royal Sundaram's Gramin Arogya Raksha, a unique health insurance scheme for the benefit of the rural sector, covers critical illness, hospital cash and personal accident.

UNI