Growth in premium collection of general insurers halved

General coverage sector insurance premium aggregation growing dipped to 12.6% inch fiscal twelvemonth 07-08 from 22.3% inch FY 06-07.

The turn in the narrative however was that mediocre growing was restricted to state-owned companies. Most private insurance companies managed to set on a good show, with Reliance General Insurance registering a insurance premium growing of 113%.

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The growing charge per unit of the non-life insurance industry have taken a whipping at the custody of the free pricing policy. The policy removed the cap and gave companies the freedom to make up one's mind coverage insurance premiums and higher growing based on earlier years.

In the listing of major insurers, Reliance was followed by Cholamandalam General Insurance with 79%, piece Asian Insurance registered a negative growing of -1.86%.

Overall, the general coverage industry managed a insurance premium aggregation of Rs 28,130 crore in FY 07-08 — 12.6% More than it had achieved during FY 06-07.

During FY 06-07 the industry managed insurance premium of Rs 24,975 crore and registered a growing charge per unit of 22.3%.

The private sector companies which registered good concern with insurance insurance premium aggregation to the melody of Rs 11,231 crore, had focused more than on retail concern and better marketing, and had achieved a 28% growing in premium aggregations during financial 2008.

They had achieved Rs 8,716 crore the former year, in FY 2007. With growing inch premiums, the share of private sector inch insurance premium aggregation have surged to 40% in FY 07-08 from 35% in FY 06-07, additional a twelvemonth back it was 27%.

Reliance General coverage (RGI) managed a gross insurance insurance premium aggregation of Rs 1,946.4 crore during FY 07-08 with 113% growing in premium. The company collected Rs 912 crore last FY.

Business of Cholamandalam General Insurance's concern also grew by 79% from its aggregation of Rs 563.7 crore in insurance premium during FY 07-08.

In FY 06-07, the company collected Rs 314 crore. Bajaj Allianz full full general coverage managed 33% growing with coverage insurance premium aggregations of Rs 2,404 crore, while ICICI Langobard general insurance managed only a 11% growing with its premium aggregation of Rs 3,345 crore during FY 07-08.

Sandeep Bakhshi, MD, ICICI Langobard General Insurance Company Ltd said the industry is expected to turn at the charge per unit of 10% inch the approaching years.

Strengthening statistical distribution web and introducing new merchandises are fuelling the insurance premium growing in private sector which is to stay the focusing point for any company to pull off steady growing charge per unit in future is well, he said. "Investment in health-related merchandises and choosing the right portfolio of products, proper hazard direction are indispensable to keep long-term profitability," Bakhshi added.

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Meanwhile, the public sector companies managed to turn by lone 4% inch insurance premium in the same period. It collected Rs 16,899 crore in FY 07-08, while it was Rs 16,259 a twelvemonth ago. Except Asian Insurance, which registered a autumn of 2% inch insurance insurance premium aggregations during FY 07-08, all the other populace sector companies maintained a premium growing of 5-7%.

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HDFC records 40% jump in Q4 net

Mumbai, April 30 The nett net income of the Housing Development Finance Corporation Limited (HDFC) for the one-fourth ended March 31, 2008 increased by 40% to Rs 768.12 crore as against Rs 550.05 crore in the corresponding one-fourth last year.

The lodging finance major which announced its consequences on Wednesday reported a nett net income of which increased by 55% to Rs. 2,436.25 crore in 2007-08 as compared with Rs 1,570.38 crore in the former year.

HDFC's board of managers urge payment Rs 25 (per share) of dividend for the twelvemonth ended March 31, 2008 of as against Rs 22 per share in the former year.

This net income before taxation for 2007-08 is inclusive of net income on sale of a portion of the Corporation's investing in its subsidiaries, HDFC Standard Life Insurance Company Limited, HDFC ERGO General Insurance Company Limited and the full sale of its retentions in its associate company, Intelenet Global Services Private Limited amounting to Rs 636.26 crore.

Konrad D'Souza, senior full general director (treasury), HDFC said, "In the last fiscal, we recorded net income worth Rs 293 crore through derived functions trading."

He said HDFC is expecting a 25% growing in loan expenses in the current fiscal. "The existent estate lag witnessed in certain pockets in tellurium state have not affected our business," said D'Souza.

HDFC's spreading on loans over the cost of adoptions for the twelvemonth stood at 2.32% arsenic against 2.18% inch the former year.

The loan portfolio of the company stood at Rs 74,104 crore as against Rs 57,988 crore in the former year, showing an addition of 28% and income from trading operations for the twelvemonth stood at Rs 8,036.42 crore against Rs 5,458.98 crore a twelvemonth ago. Loan expenses during the twelvemonth were Rs 32,875 crore as against Rs 26,178 crore in the former year, representing a growing of 26%.

Meanwhile, gross non-performing loans as on March 31, 2008 amounted to Rs 621.01 crore, which is like to 0.84% of the portfolio as against 0.92%, former year. HDFC's working capital adequateness ratio stood astatine 16.8% at the twelvemonth end.