Oriental Insurance profit up 75.15% in FY 06-07

New Delhi, July 6 (UNI) The Oriental Insurance Company Limted today said its profits have increased by 75.15 per cent to Rs 497.27 crores in the current fiscal.

The Profit Before Tax (PBT) of the company increased by 88.4 per cent to Rs 629.64 crores for fiscal 2006-07 and the company declared a 100 per cent dividend for the period.

The dividend declared was 50 per cent last year.

Addressing a Press Conference here, Oriental CMD M Ramadoss said expenses of the management fell by Rs 97 crore and added that the savings have been affected because of wage arrears paid out last year.

He said the solvency ratio was up from 1.97 per cent to 2.17, as against the IRDA requirement of 1.5.

Mr Ramdoss said Oriental recorded the highest growth in the Public Sector in terms of gross premium growth of 11.4 per cent.

Gross Premium was up by Rs 411 crore and net premium by Rs 379 crores.

He said the company has decided on retention of a higher premium of 71.62 per cent and Net Earned Premium was up by Rs 335 crores.

Operating Profit more than doubled in the period from Rs 144.38 crores in 2006-06 to Rs 298.34 crores during 2006-07.

Talking about the agenda for the future, Mr Ramadoss said the company plans to maintain a profit growth rate of 10 per cent, make Motor TP and Health portfolio profitable in the years to come; continue to be lead insurers in mega risks and keep the focus on retail business like health and personal accident and rural covers.

UNI