Mumbai: Private sector general insurer Tata AIG is likely to log in an underwriting profit, excluding the third-party motor pool, in the current financial year, a top company official has said.
“We are likely to post an underwriting profit in the current financial year if we exclude the third-party motor pool,” company’s president for insurance M Ravichandran said.
According to the company, it had an underwriting profit of Rs.52 crore in the first nine months of the current financial year that excludes the third-party motor pool segment.
The general insurer had posted an underwriting loss of Rs.5 crore in FY12 and Rs.40 crore in FY11 (both excluding the motor pool business). However, the company has not revealed the losses on the motor insurance in the past or the likely loss in the current financial year.
The purpose of the third-party declined motor pool is to ensure availability of third-party motor cover to commercial vehicle owners at reasonable prices. “Our focus is to make every segment a profit centre,” Ravichandran said, adding that the company is hopeful that losses from the third-party motor pool will come down for the industry.
Referring to capital infusion in the current fiscal from promoters, the Tata Group controlled company said parent firms had infused Rs.55 crore in the first nine months of the financial year to support business growth. While capital infusion in FY12 stood at Rs.85 crore it was Rs.65 crore in FY11.
Ravichandran, however, said the company would not require much capital support next financial year as it hopes to mobilise money to fund future growth internally. Tata AIG had a gross written premium collection of Rs.1,540.95 crore in this financial year, a growth of 26 per cent over the corresponding period in FY12.
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