United Insurance net soars 122%

Chennai-based United India Insurance Co Ltd (UI) has reported a jump of 122.49 per cent in net profit to Rs 380.45 for the year ending March 31, 2004. The board of directors have recommended a dividend of 30 per cent amounting to Rs 30 crore for 2003-04.

Addressing a press conference V Jagannathan, CMD, UI, said, "We were able to achieve the highest ever profits due to prudential underwriting norms. This increase in profits has been achieved despite pruning certain segments of business and after providing for the VRS expenditure."

UI's gross premium increased to Rs 3063.47 crore in 2003-04 from Rs 2969.63 crore in 2002-03 while net premium increased to Rs 2151.36 in 2003-04 compared to Rs 2,092 crore the previous year.

The company had settled 7,73,349 claims involving an outgo of Rs 2,062 crore for the year ending March 31, 2004. Operating expenditure increased by 28.1 per cent to Rs 797 crore in 2003-04.

This includes the VRS expenditure of Rs 106 crore. The company would be setting aside Rs 70 crore every year for its VRS payout.

The company's investment income increased from Rs 488.39 crore in 2002-03 to Rs 569.34 crore in 2003-04. It had booked a profit of Rs 359.86 crore against a book value of the portfolio at Rs 1,116.75 crore.

Health portfolio increased its contribution from 8.49 per cent to 9.13 per cent of the total premium income, while aviation segment increased its contribution from 0.93 per cent to 1.03 per cent.

However, motor, fire and miscellanous portfolio share to the premium income increased only marginally. Two segments which showed a decline in their contribution to premium was marine and engineering.