Communication on Financial Performance

New Delhi, 22nd May, 2013

Financial Performance - Year 2012-13

Dear All

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

Sr. No.  Particulars  Actual Actual  Budget 
 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
3 Earned Premium  16,241 13,327 16,147
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
13 Combined Ratio 103.70% 118.10% 102.40%

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.

For Further Details Contact:

Harshita Pandey
IFFCO-TOKIO General Insurance
harshita.pandey@iffcotokio.co.in
Tel: +91 9910033990