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Private general insurer Bharti Axa General Insurance will gradually reduce its dependence on motor insurance segment and will focus more on commercial and health insurance lines in its bid to derisk its growth prospects, a top company official said.
"We will focus more on commercial and health insurance segments going ahead to increase their share in overall business. This will help us to reduce dependence on motor segment," Bharti Axa General Insurance MD and CEO Amarnath Ananthanarayanan told reporters here.
During April-December period of current financial year, while motor insurance contributed around 73% of the overall business, health and personal accident contributed 13% and commercial lines at 11%.
In general insurance industry, motor insurance segment contributes around 45% of the total business.
When asked about the loss ratio, a critical indicator of profitability of a general insurance firm, he said loss ratios are likely to be better in this fiscal compared to previous fiscal.
The general insurance firm said that it will come up with new customised offerings for dealers and retail customers in motor insurance segment in the current year.
"We will also file two new products in the health insurance segment in 2014," Ananthanarayanan said.
He also said that the company would expand its footprint in the country with opening of 29 branches in 2014.
Talking on the profitability, Ananthanarayanan said the company would be profitable on entity level in the next financial year.
Bharti AXA General Insurance is the joint venture between Bharti Enterprises and AXA group of France, in which 74% stake is being held by Bharti group.
It has a premium collection of Rs 1,183.55 crore during April-January period of this fiscal.
