Second largest public sector general insurer Oriental Insurance today said it expects a decline in its profit by about Rs 300 crore during the year ended March 2009."Our profit would be reduced this time by about Rs 300 crore due to reduction investment income," Oriental Insurance Chairman and Managing Director M Ramadoss told reporters here.
The company had posted a profit before tax (PBT) of Rs 453 crore in 2007-08, he said, adding, so PBT would be in the range of Rs 100-150 crore in FY'09.As the return from the both equity market and debt market has taken a hit during the fiscal, it will have impact on the profitability of every company, he added.
During the year the company made investment of Rs 175 crore in the equity market.The company collected a premium of Rs 4,075 crore during the financial year 2008-09, registering a growth of 4.5 % over the last year.
The insurer register about 35% growth in health insurance portfolio while motor insurance remained flat.Asked about growth in premium collection during the current financial year, Ramadoss said, "We are targeting a growth of 7-8 per cent subject to no economic recession."
Oriental Insurance collected Rs 3,960 crore from domestic operations while overseas operation contributed Rs 125 crore to the gross premium.
Meanwhile, the company introduced core software in all branches and extension counter numbering 1,018 enabling customers to pay premium and lodge claim at any office.
The software developed at a cost of Rs 150 crore will help reduce the claim settlement time substantially, Ramadoss said, adding, it will help in cost saving for the company as well.The software also provides a web based interface that allows policy holders to access their policies instantly online, registering complaints and tracking them online.
On the premium income from Indian Premier Leauge (IPL), Ramadoss said it expects about Rs 3 crore premium from high-profile 20:20 cricket tournament.Owners of all the teams have taken insurance cover for personal accident, terrorism as well as loss of baggage for their members, he said. Of the 8 teams playing in IPL beginning on April 18 in South Africa, he said, adding, the sum assured and the premiums vary from players to players