Royal Sundaram premium income up 30 p.c
The Hindu, 15 May, 2007
Royal Sundaram Alliance Insurance Company Limited has reported a 168 per cent growth in profit before tax for the year ended March 2007 at Rs.27.18 crore, up from Rs. 10.16 crore in the preceding year.
This performance, based on a 30 per cent growth in revenues, results in a 16 per cent post-tax return on equity during 2006-07, says a release from the company.
Royal Sundaram Alliance Insurance Limited is a joint venture between Sundaram Finance and Royal and SunAlliance, where the former holds 74 per cent and the latter 26 per cent. The company has a paid-up capital of Rs. 140 crore.
Royal Sundaram has written a total premium of Rs. 600.58 crore (Rs. 460.85 crore). This represents an overall premium growth of 30 per cent. Out of this premium income, the contribution of personal insurance is Rs. 391 crore, a 40 per cent growth. Commercial insurance has contributed Rs. 210 crore.
Motor insurance is the largest portfolio contributing 51 per cent of the total premium (50 per cent in 2005-06). Fire and engineering have contributed 22 per cent (25 per cent).
Accident and health have contributed 21 per cent (16 per cent). Rural business continues to exceed the minimum requirements five per cent and contributes eight per cent of the total premium, the release added. "Our strategy of focussing on profitable segments and delivering customer delight, supported by technical leadership, is beginning to deliver results," the release quoted Antony Jacob, Managing Director, as saying.