Royal Sundaram records healthy profit with PAT of Rs. 550mn

India Infoline News Service | Mumbai |

The Company has written Rs. 1560 crore of premium income during FY13

Royal Sundaram Alliance Insurance Company Limited (www.royalsundaram.in), a joint venture between Sundaram Finance and Royal & Sun Alliance Insurance plc, UK, announced its annual results for the year ended March 31, 2013.

 

Business Performance

 

The Company has written Rs. 1560 crore of premium income during FY13.

 

The Company has also recorded a healthy Profit after Tax (after absorption of pool loss) of Rs. 54.67 crore while the Profit before Tax (after absorption of pool loss) stood at Rs. 63.26 crore. The solvency margin is 1.44 times as against the stipulated 1.40 times

 

Speaking on the performance, Ajay Bimbhet, Managing Director, said, “Despite the tough external factors around the economy last year, Royal Sundaram has been able to deliver positive performance. We took a conscious decision from an underwriting perspective to assess risks more closely and focus on profitable growth. I am happy that our efforts have helped us to achieve underwriting profits too during this year.”


Particulars

2012-13

Rs. in Crore

2011-12

Rs. in Crore

Profit Before Tax (after absorption of pool loss)

63.26

(0.45)

Profit After Tax (after  absorption of  pool loss)

54.67

0.22


Commenting on the strategy, Bimbhet said, “We will continue our focus in growing retail business, with greater emphasis on retail health and SME business. We will also maintain our prudence in underwriting commercial business on profitable lines. We are well prepared to deliver greater value proposition to our customers with our comprehensive product suite, excellent service standards and of course, realistic pricing.”

 

Motor Third Party Pool Loss

Royal Sundaram absorbed Rs. 164.10 crore towards the Motor Pool losses in FY13 as against Rs. 222.49 crore in FY12.

 

Capital infusion

The Shareholders of Royal Sundaram infused an additional capital of Rs. 40 crore (which includes Rs. 15 crore of share premium). The total paid up capital of the Company is currently Rs. 315 crore.

 

“The shareholders are confident about Royal Sundaram’s performance and growth aspirations. We intend to utilise this additional capital to bolster our business further." said Bimbhet.

 

 

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