Royal Sundaram net profit zooms 144%
Business Line, 15 May, 2007
Royal Sundaram Alliance Insurance Company Limited has reported 144 per cent growth in net profit to Rs 21 crore during its seventh year of operations ended March 31.
The company earned premium income of Rs.600.58 crore, a growth of 30 per cent over the previous year.
Personal insurance accounted for Rs 391 crore while commercial insurance contributed Rs 210 crore to premium income.
Motor insurance accounted for 51 per cent of the total premium, fire and engineering insurance 922 per cent), accident and health (21 per cent), while marine insurance accounted fro three per cent.
Mr.Antony Jacob, Managing Director, attributed the growth in profit to improved claims management, good risk management on the underwriting and technical side and good expense and investment management. He added that investments in people and on `tariff abolition project'' over the past few years had helped the company.
On whether the company had made an underwriting profit, Mr. Antony said: `No, we are almost there. Our underwriting losses have come down from about Rs 11 crore to 5.5 crore this year. We should reach underwriting break-even soon.'' On contribution of investment income, he said that in the previous fiscal, it had risen to Rs 32 crore (Rs 21 crore).