Magma HDI to grow business by 40% in FY15

Magma HDI company which earned gross written premium of Rs 425 Crore in FY 14 target to increase business by 40% in FY 15.

July 10, 2014 10:13 IST | India Infoline News Service
Magma HDI General Insurance Co Ltd (MHDI), the first general insurance JV to be headquartered in Eastern India has announced its plan for FY 15. The company which earned gross written premium (GWP) of Rs 425 Crore in FY 14, will target to increase business by 40% in FY 15. For the company which started operations in October 2012, FY 14 was the first full year of operations and issued over 3 Lac policies in FY 15 and majorly addressed customers in the semi urban and rural markets, the focus catchment areas for the company.

Addressing the media in Kolkata, Swaraj Krishnan, MD & CEO of Magma HDI said, “Our primary business has been derived from the motor business in the retail sector amounting to 92% of overall business. We hope to break even in FY 17, one of the fastest in the industry” he claimed.

MHDI offers cashless claims facility through a network of nearly 1300 garages.
For the year ahead, we plan to focus on multiple revenue streams and will need to rejig our portfolio to do more non-motor business. We will continue to invest in infrastructure and information technology to make it possible for us to provide services at the remote location at least cost”.

“We have successfully leveraged on the JV, and we make an attempt to combine Magma’s strong brand equity, extensive distribution network with international insurance expertise, product range, technology and global service standards of HDI Gerling. Our parentage enables us to leverage the reach, get access to the salesforce to explore cross sell opportunities and get the mileage out of the existing relationships of Magma”, Krishnan added.

The company operates out of 73 offices on a pan India basis and plans to widen it further to about 80 by year-end.

The company offers a wide range of products including Commercial / Private Car / Two Wheeler Package Policy + Add-ons Products, Motor Act Only policy, Motor Trade Package, Internal Risk, Motor Add On Products, Fire/Burglary, Liability – Industrial/Non Industrial, Act Only & Clinical Trial, Marine Cargo Open & Specific Voyage, CAR, EAR, EEI, Boiler, CPM, Personal Accident, Shopkeeper, Householder, Loan Protector etc. A host of new products are expected to be launched shortly.

Magma HDI has empanelled over 1900 IRDA agents in a span of over just 2 years. This has allowed Magma HDI to significantly deepen its penetration in semi urban and rural market, that has played a crucial role in connecting with the prospective customers, educating them about the products and leveraging the already established goodwill of the brand Magma.

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