New India Assurance FY15 net profit up by 31%

Insurer had net profit of Rs 1,431 cr for FY15 compared to Rs 1,089 cr in FY14

New India Assurance, the country's largest general insurer, has posted a 31% increase in its net profit for the financial year 2014-15.

The insurer had net profit of Rs 1431 crore for FY15 compared to Rs 1089 crore in FY14. The global business (premium) including Indian and abroad stood at Rs 16,050 crore showing a growth of 12.2%.

G Srinivasan, chairman and managing director of New India said that they have set a target of Rs 18,000 crore global (India plus abroad) premium for FY16 and Indian premium of Rs 15,000 crore. He said that they were planning to have reinsurance operations in GIFT City in Gujarat.

The combined ratio of the company was at 115.19 at end of March 31, 2015. Srinivasan added that motor and health will be their focus areas for this fiscal.

As on March 31, 2015, the market share of the Company stood at 16.44%, up from 15.82% at end of FY14. The company expects 14% growth in premium in FY16, with 10-12% coming from corporate business and 20% from retail business.

New India has increased its foot prints globally, by opening a representative office in Myanmar & its Trinidad & Tobago subsidiary expanding to Guyana as well. Today the company has presence in 27 countries, through direct operations, subsidiaries and its associates.

Srinivasan said that their Dubai Regional office is getting formed and New India Assurance is approaching Qatar Financial Centre for license to operate. The foreign operation's turnover (without subsidiaries and associates) grew to Rs 2,841 crore (rupee equivalent).