New India hopes to clock 18-20% rise in premium in fiscal 2013

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Public sector general insurer New India Assurance is likely to post 18-20 percent gross premium growth in the current financial year, after reaching Rs 10,000 crore mark last fiscal, a top company official said on Thursday.

"We will maintain our leadership position. We hope to see 18-20 percent growth in premium in the current financial year, in line with the industry growth projections," chairman and managing director (officiating) A.R. Sekar said here.

"We have not seen losses from foreign operations...it should be a profitable growth," Sekar said. The largest general insurer had reported a loss of Rs 412 crore for the first time since its inception in 2010-11 on account of around Rs 300 crore losses from foreign operations.

However, the company swiftly swung back the very next fiscal (2011-12) with Rs 179.4 crore profit. On growth in various segments, Sekar said, "Both corporate and retail segments are witnessing sound growth rates. But, growth in retail is higher than other segments."

Any general insurance player who would like to see rise in profit has to concentrate on retail segment, he said.

About hike in premium in health, fire and motor insurance, Sekar said any rise is consumer-specific, which depends on the risk attached.

"I can't give a number across the board. It depends on the individual policy and risk attached to it," Sekar said.

New India reached a gross premium collection of Rs 10,074 crore in FY12. While Rs 8,543 crore was from domestic operations, Rs 1,531 crore came from overseas operations.

It had posted a profit of Rs 179.4 crore during the last fiscal.