Chennai-based Royal Sundaram Alliance Insurance has reported 29% growth in GWP (gross written premium) for the financial year ended March 2012. The company’s GWP increased to Rs. 14.79 billion in FY11-12 from Rs. 11.44 billion in FY10-11.
Private general insurer’s has recorded a profit after tax (after pool loss) of Rs. 2.2million compared to a loss of Rs. 201 million in the previous year. The company’s minimum required claims provision for FY11-12 was Rs. 1.18 billion. However, thecompany has provided for a higher amount of Rs. 2.22 billion towards the motor pool losses so that the quantum of losses to be absorbed in the next two years stands reduced.
The shareholders of Royal Sundaram had infused an additional capital of Rs. 640 million(including a share premium of Rs. 240 million) during March 2012 to maintain the stipulated solvency margin and address the capital requirement position impacted due to absorption of the losses from motor third party pool.
The insurer has maintained a solvency margin of 1.36 times against 1.30 times,stipulated by the regulator for FY11-12. The company plans to continue its focus in further developing the growth in retail business, with greater emphasis on retail health insurance business and SME (small and medium enterprises) business. The company is a joint venture between Sundaram Finance and Royal & Sun Alliance Insurance plc, UK.