Oriental net down 14% to Rs 284 crore
The Oriental Insurance Company has reported a 14% decline in net profit at Rs 284 crore in ‘05-06 from Rs 330 crore in ‘04-05.
By TNN |
NEW DELHI: The Oriental Insurance Company has reported a 14% decline in net profit at Rs 284 crore in ‘05-06 from Rs 330 crore in ‘04-05. OIC attributed the decline in net profit to continuous loss in motor insurance business, health insurance business and on account of the losses incurred due to claims in Mumbai floods.
With general insurance detariffed from January ‘07, the premium rates for health policies and motor insurance are expected to go up given the huge losses general insurers are witnessing in these segments.
The company is planning to hike premium rates for its Individual Mediclaim Policy by up to 30% for people in the higher age group. The premium income of the company grew by 16.8% to Rs 3,610 crore during the last fiscal as compared to Rs 3,090 crore in ‘04-05.
The fall in net profit was due to underwriting loss of Rs 750 crore as the company witnessed higher claims in health and motor business, besides settlements of claims by victims of last year’s Mumbai floods. But the loss was offset by a profit of Rs 1,100 crore from investments in equity, mutual funds and bonds, Oriental Insurance Company CMD M Ramadoss said here after announcing the financial results for ‘05-06.
He said that the company targets 10% growth in premium income at Rs 3,900 crore and 5% growth in net profit at Rs 300 crore this fiscal.
“We have set a target of Rs 3,900 crore gross premium for ‘06-07, but we are hopeful of crossing Rs 4,000 crore, up from Rs 3,610 crore in ‘05-06,” Ramadoss said. OIC has identified the thrust areas like aviation, oil and energy and liability business for premium growth. OIC has announced a dividend of Rs 50 crore to the Union government.
OIC expects premium collection from the country to go up to Rs 3,884.87 crore in ‘06-07 and overseas operations to contribute around Rs 92 crore. The company plans to expand its overseas operation by adding two more branches in Middle-East region. The three overseas branches of the insurer — in Kuwait, Dubai and Nepal — have made a profit of Rs 18 crore.
With general insurance detariffed from January ‘07, the premium rates for health policies and motor insurance are expected to go up given the huge losses general insurers are witnessing in these segments.
The company is planning to hike premium rates for its Individual Mediclaim Policy by up to 30% for people in the higher age group. The premium income of the company grew by 16.8% to Rs 3,610 crore during the last fiscal as compared to Rs 3,090 crore in ‘04-05.
The fall in net profit was due to underwriting loss of Rs 750 crore as the company witnessed higher claims in health and motor business, besides settlements of claims by victims of last year’s Mumbai floods. But the loss was offset by a profit of Rs 1,100 crore from investments in equity, mutual funds and bonds, Oriental Insurance Company CMD M Ramadoss said here after announcing the financial results for ‘05-06.
He said that the company targets 10% growth in premium income at Rs 3,900 crore and 5% growth in net profit at Rs 300 crore this fiscal.
“We have set a target of Rs 3,900 crore gross premium for ‘06-07, but we are hopeful of crossing Rs 4,000 crore, up from Rs 3,610 crore in ‘05-06,” Ramadoss said. OIC has identified the thrust areas like aviation, oil and energy and liability business for premium growth. OIC has announced a dividend of Rs 50 crore to the Union government.
OIC expects premium collection from the country to go up to Rs 3,884.87 crore in ‘06-07 and overseas operations to contribute around Rs 92 crore. The company plans to expand its overseas operation by adding two more branches in Middle-East region. The three overseas branches of the insurer — in Kuwait, Dubai and Nepal — have made a profit of Rs 18 crore.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
