Royal Sundaram FY'12 premium collection up 29% at Rs 1,479.79 crore
Vinod Dasari, managing director, Ashok Leyland, told NDTV Profit that the company is planning to make about 36,000 vehicles in FY13-14. “We are happy about the exports market that we have developed. Southern markets are seeing revival,” he added.
Private general insurance player Royal Sundaram Alliance Insurance on Monday reported a 29 per cent growth in its total premium collection at Rs 1,479.79 crore in the financial year 2011-12.
The company's gross (total) written premium collection stood at Rs 1,143.99 crore in the previous year, Royal Sundaram Alliance said in a release.
Royal Sundaram Alliance also recorded a Profit After Tax (after motor pool loss) at Rs 0.22 crore as against a loss of Rs 20.1 crore in the previous financial year.
The Insurance Regulatory Development Authority (IRDA) decided to dismantle the Indian Motor Third Party Pool with effect from March 31, 2012 by way of orders issued on December 23, 2011, January 3, 2012 and March 22, 2012. The regulator also advised absorption of the losses of Third-Party Motor Pool as per the prescribed methodology in the order. Based on this, Royal Sundaram's minimum required claims provision for FY 2011-12 was Rs 117.74 crore.
However, the company, as a matter of prudence, has provided for a higher amount of Rs 222.49 crore towards the Motor Pool losses so that the quantum of losses to be absorbed in the next 2 years stands reduced.
"It is quite satisfying that we have been consistently out pacing the industry growth. Our current year's growth is reflected in all lines of business and attributed to our prudent underwriting practises. Despite the challenges faced, we have been able to keep pace with the growth," company Managing Director Ajay Bimbhet said.
Shareholders of Royal Sundaram had infused an additional capital of Rs 64 crore (including a share premium of Rs 24 crore), during March 2012 in order to maintain the stipulated solvency margin and address the capital requirement position impacted due to absorption of the losses from Motor Third Party Pool.
"Royal Sundaram has maintained a solvency margin of 1.36 times as against 1.30 times, stipulated by the regulator for FY12," Bimbhet said. Talking about portfolio performance and strategy, Bimbhet said, government initiated health scheme RSBY and other rural insurance business has been significant contributor of the company's overall growth.
"Going forward, we will continue our focus in further developing the growth in Retail business, with greater emphasis on Retail Health Insurance business and SME business. We are prepared to deliver value for money propositions to our customers with a comprehensive product suite and excellent service," he added. The company is a joint venture between Sundaram Finance and Royal & Sun Alliance Insurance Plc, UK.