Growth in motor, health segments raises UII net 3%

Written by fe Bureau | Chennai | Updated: Oct 28 2014, 07:38am hrs
Public sector insurer United India Insurance (UII) has reported a R376.24-crore net profit for the first half of this fiscal, a marginal hike of 3.2% from the R364.54 crore it earned in the year-ago period.

Aided by strong growth in the motor (18%), health (22%) and fire (5.6%) categories, the companys business grew 11% to R5,291 crore in H1, against the industrys average of 8% in the same period, Milind Kharat, chairman and managing director of UII, said on Monday.

Kharat said UII hoped to end the fiscal by doing business worth R11,000 crore, against R9,770 crore in 2013-14. Despite settling claims of R402 crore including Jammu and Kashmirs flood-related claims of R300 crore and expected claims of R750 crore to R800 crore for the damage caused by the Hudhud cyclone in Andhra Pradesh (R10 crore settled so far), the company plans to post a profit after tax of over R650 crore in this fiscal, against R570 crore last year, Kharat said. Kharat said the company has so far received claims worth R414 crore for the Hudhud cyclone in Andhra Pradesh and these were expected to cross the R750-R800 crore mark. In Andhra Pradesh, majority of the claims would be from industries such as Visakapatnam Steel Plant, surrounding power plants and other industries; we are yet to receive claims from them. Through efficient claims management, we will be able to reduce claims ratio from 83.75% to 81.70% in H1, he said.

The company had a solvency ratio of 2.63, as against regulatory requirement of 1.50. The market value of total investments stood at R25,586 crore and the net worth stood higher at R5,738 crore, Kharat said.

Asked if the motor and health categories will continue to do well, Kharat said: We will focus more on these verticals, apart from retail, MSMEs and rural areas. Our agent strength will touch 80,000 by the end of this fiscal," he said. The company will also open 200 micro offices n tier-4 towns.