Reliance General Insurance saw its profits more than double to Rs. 24.3 crore in the first quarter of financial year 2014-15 as the total number of policies sold during the period crossed the one-million mark.
The private sector general insurance player, which is part of Anil Ambani-led Reliance Group's financial services arm Reliance Capital, beat the overall industry trends with a significant surge in its premium collection.
"While the industry is going through a phase of slow growth, we at Reliance General are trying to reach out to the under-insured population and businesses to sustain growth. We have one of the biggest agency strength which has helped us significantly," chief executive Rakesh Jain told PTI.
Reliance General Insurance's first quarter profit rose 138 per cent to Rs. 24.3 crore in the quarter ended June 30, 2014, as compared to Rs. 10.2 crore in the corresponding period a year ago.
This comes at a time when some other major private general insurers have witnessed a decline in profitability.
We have continued with our diversified growth and it has paid dividends in terms of robust top line and bottom line. Fire, engineering and motor segments have powered our growth," Mr Jain said.
The company sold nearly 10.99 lakh policies during the quarter, marking an increase of 19 per cent on year-on-year basis. It had sold 9.22 lakh policies in the year-ago quarter, while the number of policies in the fourth quarter of fiscal year 2013-14 stood at 9.99 lakh - just shy of the one-million mark, as per an investor presentation.
Reliance General's gross written premium for the quarter ended June 30, 2014 was at Rs. 787 crore, a year-on-year increase of 11 per cent, as against the average industry growth of 5 per cent.
RGI has also gained market share and now accounts for 9 per cent of the private general insurance market in terms of premium under written, up from 7.5 per cent in the previous quarter, the company said
Its business mix at the end of June 30, 2014 was 51 per cent motor, 22 per cent health, 16 per cent fire and engineering, 3 per cent marine, and 8 per cent others. It had a distribution network of 127 branches and over 15,500 intermediaries, as on June end.
Investment book stood at Rs. 4,495 crore - up 31 per cent from the year-ago level, as on June 30, 2014. Reliance General recorded its first full-year net profit of Rs. 64 crore for the fiscal ended March 31, 2014.
The company offers insurance solutions for auto, health, home, property, travel, marine, commercial and other speciality products.
NDTV Profit, August 20, 2014