New India remains numero uno among general insurers

The New India Assurance Company has maintained its lead and has ended the financial year 2005 with a premium income of over Rs 5,107 crore. This includes Rs 4,207 crore of domestic insurance business and over Rs 900 crore from overseas operations.

Though this represents a growth of about 4 per cent over last year against the industry growth rate of an upward of 15 per cent, New India continued to retain its leadership by a wide margin.

Among private insurance players, ICICI Lombard General Insurance closed the year with a premium income of about Rs 890 crore, followed by Bajaj Allianz General Insurance's Rs 855 crore.

According to industry sources, National Insurance Company, which took over New India late last year, managed to close the fiscal with a premium income of about Rs 3,830 crore, about Rs 1,200 crore less than the industry leader.

Oriential Insurance Company managed to close the year with a premium income of Rs 3,038 crore from domestic operations plus an additional Rs 70-odd crore from its overseas branches. United India Insurance closed fiscal with a premium income of approximately Rs 2,956 crore.

National Insurance downgraded: Rating agency Icra has downgraded the National Insurance Company, citing a sharp decline in the company's profitability.

The rating has been downgraded to iAA+ from iAAA. Icra said it is also concerned about the qualifications made by the auditors with regard to the valuation of the company's liabilities towards its policyholders.

Icra also believes that, with the operating environment getting increasingly competitive, the profitability of the company could come under further pressure unless it takes measures to improve its underwriting practices, prune costs and improve claim management and service standards.

The company's strong national franchise and presence, its access to a strong and liquid investment portfolio and its healthy capitalisation levels, however, provide Icra with comfort.