27 May, 2013
• Company declares Gross Written Premium (GWP) of Rs. 1560 crore
• Infuses additional capital of Rs. 40 crore
• Company reinforces its focus on profitable business and retail lines
May 27, 2013: Royal Sundaram Alliance Insurance Company Limited (www.royalsundaram.in), a joint venture between Sundaram Finance and Royal & Sun Alliance Insurance plc, UK, announced its annual results for the year ended March 31, 2013.
The Company has written Rs. 1560 crore of premium income during FY13.
The Company has also recorded a healthy Profit after Tax (after absorption of pool loss) of Rs. 54.67 crore while the Profit before Tax (after absorption of pool loss) stood at Rs. 63.26 crore. The solvency margin is 1.44 times as against the stipulated 1.40 times
Speaking on the performance, Mr. Ajay Bimbhet, Managing Director, said, “Despite the tough external factors around the economy last year, Royal Sundaram has been able to deliver positive performance. We took a conscious decision from an underwriting perspective to assess risks more closely and focus on profitable growth. I am happy that our efforts have helped us to achieve underwriting profits too during this year.”
Rs. In Crore
Rs. In Crore
|Profit Before Tax (after absorption of pool loss)||63.26||(0.45)|
|Profit After Tax (after absorption of pool loss)||54.67||0.22|
Commenting on the strategy, Mr. Bimbhet said, “We will continue our focus in growing retail business, with greater emphasis on retail health and SME business. We will also maintain our prudence in underwriting commercial business on profitable lines. We are well prepared to deliver greater value proposition to our customers with our comprehensive product suite, excellent service standards and of course, realistic pricing.”
Motor Third Party Pool Loss
Royal Sundaram absorbed Rs. 164.10 crore towards the Motor Pool losses in FY13 as against Rs. 222.49 crore in FY12.
The Shareholders of Royal Sundaram infused an additional capital of Rs. 40 crore (which includes Rs. 15 crore of share premium). The total paid up capital of the Company is currently Rs. 315 crore.
“The shareholders are confident about Royal Sundaram’s performance and growth aspirations. We intend to utilise this additional capital to bolster our business further." said Mr. Bimbhet.
About Royal Sundaram
Royal Sundaram Alliance Insurance Company Limited is a joint venture between Sundaram Finance and RSA Insurance plc, UK, where the former holds 74% and the latter holds 26% of the equity. Royal Sundaram is the first private non-life Insurance Company licensed to operate in India.
Royal Sundaram offers a range of innovative general Insurance products which includes Motor, Health, Personal Accident, Home and Travel Insurance for individual customers. The Company's Accident & Health claims process received ISO 9001-2008 certification for effective customer service delivery. For Commercial clients, Royal Sundaram offers a wide range of specialised insurance covers in Fire, Marine, Engineering, Liability and Business Interruption risks. Royal Sundaram also offers specially designed products to the Small and Medium enterprises and Rural customers. Royal Sundaram currently has over 5 million customers, over 1700 employees and its products are distributed in over 180 cities across India, through Agents, Distribution Partners, Affinity Partners and Brokers.
About Sundaram Finance
Sundaram Finance, a Non-Banking Finance Company, is one of the most respected financial services companies in India. It finances the entire range of commercial vehicles, passenger cars, construction equipment & tractors. The Group's operations also extend to Insurance, Asset Management, Home loans, Business Process outsourcing and Infotech Solutions. Sundaram Finance has a Nationwide presence with over 500 branches and over half a million customers and depositors who are serviced by over 2500 employees. Sundaram Direct, its retail distribution arm offers multiple choices of various financial products like, loans, life & general insurance, mutual funds, deposits etc., to its customers through out India.
With a 300 year heritage, RSA is one of the world's leading multinational quoted insurance groups. It has the capability to write business in over 130 countries and major operations in the UK, Scandinavia, Canada, Ireland, Asia and the Middle East, Latin America and Central and Eastern Europe. Focusing on general insurance, it has around 23,000 employees and, in 2010, its net written premiums were £7.5 billion.
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