State-owned National Insurance Company has recorded 18.8 per cent growth in gross premium collection at Rs 14,282 crore for the fiscal ended March 2017.The Kolkata-based insurer had mobilised gross premium of Rs 12,019 crore in the previous fiscal. At the same time solvency margin, the key indicator of an insurer’s financial health, of the company improved from 1.26 per cent to 1.90 per cent.
Insurance regulator IRDAI stipulates that an insurer should maintain solvency margin of 1.5 per cent. Since the solvency margin had fallen below the stipulated level, Insurance Regulatory and Development Authority of India (IRDAI) had asked the company to initiate corrective action and improve solvency margin. According to official sources, the networth of the company at market value also improved to Rs 9,544 crore as against Rs 8,764 crore recorded in the previous year.
In January this year, the Union Cabinet had approved the listing of general insurance companies on stock markets. The government, which currently holds 100 per cent in five public insurers — New India Assurance, National Insurance, United Insurance, Oriental Insurance and reinsurance company General Insurance Corporation — is looking to raise Rs 11,000 crore by selling its stake in general insurers. The government had approved dilution of up to 25 per cent equity stake in the five companies in tranches.