11 May, 2011
Healthy top-line growth registered with Gross Written Premium (GWP) of Rs. 1147.09 crore
Profit Before Tax (before motor pool loss) grew by 18 percent to Rs. 60.93crore
Company strengthens the focus on retail lines of business
Chennai, May 10, 2011: Royal Sundaram Alliance Insurance Company Limited (www.royalsundaram.in), the first private sector general insurance company in India to be licensed, announced their annual results for the year ending March 31, 2011.
The Company has posted a top-line growth of 25 percent with a Gross Written Premium (GWP) of Rs 1147.09 crore, during the financial year 2010-11, as compared to the GWP of Rs. 915.56 crore, in the previous year.
The Company has also recorded a healthy Profit Before Tax (before motor pool loss) of Rs. 60.93 crore, registering a growth of 18 percent over the last year.
The Company infused additional capital of Rs. 65 crore (including premium), taking the total paid up capital and premium to Rs.275 crore. The solvency margin is at 1.56, above the stipulated norms.
Royal Sundaram, with its strong distribution and affinity partners, has expanded its business during the year 2010-11 to over 180 cities and towns, across the country. The Company's network has grown to 84 branches pan India with addition of three new branches during the financial year 2010-11.
The Company serviced over 46 lakh customers across the country during the year. The number of policies increased by more than 36 percent during the year with 17 lakh policies being issued compared to 12.5 lakh during the previous year.
The Company continues to exceed its obligations under the Rural and Social Sectors. Royal Sundaram has also been providing health insurance cover, under the government sponsored Rashtriya Swasthya Bima Yojna (RSBY), to the BPL families in eight districts of Bihar. The Company has renewed MoU with the Government for three districts, while there is still time left for the rest of the districts to complete one year. The Company covered 8.68 lakh BPL families under the scheme in financial year 2010-11.
Portfolio Out of the total premium of Rs. 1147.09 crore, Personal Insurance contributed Rs.749.48 crore during the financial year 2010-11, registering a growth of 31.8 percent over the previous year. Commercial Insurance contributed Rs. 156.24 crore during the financial year 2010-11, registering a growth of 8.5 percent over the previous year. Commercial Vehicle Insurance contributed Rs. 241.37 crore during the financial year 2010-11, registering a growth of 18.9 percent over the previous year.
April'10 - March'11
(Rs. in crore)
April'09 - March'10
(Rs. in crore)
|Premium Income||Rs. 1147.09||Rs. 915.56||25|
Profit Before Tax
(Before motor pool loss)
|Rs. 60.93||Rs. 51.68||18|
Speaking on the performance, Ajay Bimbhet, Managing Director said, "The Company's overall performance is encouraging. Our commitment and conscious focus on retail business has given us positive results. Every year, even during the challenging times, the Company's performance has observed a constant growth, which reiterates our belief to strive for continued success."
"Going forward, our emphasis will be on building our book by tapping the underlying opportunity in the ever growing retail market in India. We will achieve this by leveraging the efficiency of all the distribution channels, prudent underwriting, efficient risk management, right product mix and excellent claims capabilities."
He further added, "The General Insurance industry is stepping into a new era. The days ahead are definitely going to be crucial for the industry, which will witness a lot of progressive regulatory changes. We are well poised to adapt to the changes and continue incubating growth oriented strategies."
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.
About RSA 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.
For further information:
Royal Sundaram Alliance Insurance Company Ltd.