Iffco-Tokio Sees 131% More Premium Income

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Iffco-Tokio General Insurance Co Ltd has targeted a 131 per cent rise in premium income in the current financial year to March 31, 2003, according to CEO & MD Ajit Narain. Iffco-Tokio is the joint venture between Indian Farmers Fertiliser Co-operative Ltd (Iffco) and Tokio Marine & Fire Insurance Co Ltd of Japan.

"We have achieved a premium income of Rs 80.12 crore during the fiscal to March 31, 2002 and we hope to increase the figure to around Rs 185 crore by the end of the current fiscal," Mr Narain told reporters here Friday.

He said till the first six months of the current financial year to September 30, 2002, Iffco-Tokio has booked a premium income of Rs 112 crore, out of which around Rs 87 crore or 78 per cent came from the commercial line of business.

Mr Narain said Iffco-Tokio has booked a net profit of around Rs 2.3 crore during the financial year to March 31, 2002. "The net profit figure as of the six-month period to September 30, 2002 has been Rs 9 crore," he said.

Although Mr Narain refused to spell out any specific figure of targeted net profit by the end of the current fiscal, he said the figure is expected to be around eight per cent of the gross premium. He claimed that Iffco-Tokio is one of the few insurance companies to show profit in its first full year of operation.

"This year, Iffco-Tokio will surpass its past year achievements by effectively operating in this highly competitive insurance market," he said.

Mr Narain said although during the previous as well as the first six months of the current fiscal, Iffco-Tokio has booked majority of its premium from the commercial line of business.

In the recent past, the management has decided to shift its focus to personal lines.

"Over a period of time we have plans to become one of the major players in personal lines of business and the plan is in line with our long-term commitment of sustenance and profitability in the industry," he said.Mr Narain said Iffco-Tokio is parking its investments in a safe destination namely government securities and government bonds. "Right now we are not in favour of risky ventures like shares, debentures and call money markets."

He further claimed that Iffco-Tokio enjoys 18 per cent share among the private players in the general insurance market.