Communication on Financial Performance
New Delhi, 22nd May, 2013:
Financial Performance - Year 2012-13
The Board of Directors in their meeting held on 11th May, 2013 have approved the audited accounts of the company for the year 2012-13. The Financial performance of the Company for the year 2012-13 on key financial parameters has been quite satisfactory as detailed under:
Rs. In Millions
|F.Y. 2012-13||F.Y. 2011-12||F.Y. 2012-13|
|1||Gross Written Premium (Excl Pool)||26,281||20,260||23,745|
|2||Gross Written Premium (Incl Pool)||26,494||22,486||24,246|
|4||Net Incurred Claims||12,454||12,336||11,792|
|5||% to Earned Premium||76.69%||92.57%||73.03%|
|6||Net Commission Outgo/ (Income)||-47||-120||593|
|7||% to Earned Premium||-0.29%||-0.90%||3.67%|
|8||Expenses of Management||4,452||3,526||4,147|
|9||% to Earned Premium||27.41%||26.46%||25.68%|
|10||Underwriting Profit / (Loss)||-604||-2,416||-385|
|11||Income from Investments||2,548||1,939||2,220|
|12||Profit Before Tax||1,963||-466||1,835|
During the year, the GWP (Excl Pool) growth of the Company has been 29.7% as against the industry growth of 18.6% and the Company continued its 3rd position amongst private sector companies in terms of market share. The turnaround in profits of the company has been on account of higher investment income and reduction in loss from dismantled motor pool account. The solvency ratio of the Company as at 31st March 2013 rose to 1.43 as against the required solvency ratio of 1.40.
While approving the accounts, the Board has expressed its happiness on the performance of the company and also conveyed its appreciation for the unstinted support rendered by the employees of the Company at all levels for their hard work, dedication, and commitment.
The outlook of the General Insurance Industry in the current year 2013-14 is promising. The industry is poised both for business growth and profitability and the company is ready to garner it’s larger share in industry performance.