The Hindu Business Line : Iffco-Tokio may opt for fresh infusion of capital

IFFCO-Tokio General Insurance Co Ltd (ITGI), a 74:26 joint venture between Iffco and Tokio Marine and Nichido Fire, may opt for fresh infusion of capital in this fiscal to manage its business growth.

The company's board, which met here on Friday, decided to undertake a study on the capital requirements, according to Mr Ajit Narain, Managing Director and Chief Executive Officer (CEO), ITGI.

The premium revenue of ITGI surged to Rs 501 crore during the year ended March 31, 2005 from Rs 322 crore previous year. The solvency margin as on March 31, 2005 stood at 1.6 (2.2) The company's paid-up capital was Rs 100 crore as on March 31, 2005.

ITGI reported a net profit of Rs 14.72 crore for the year ended March 31, 2005 (Rs 9.58 crore). The board recommended a dividend of 6 per cent for the year against 5 per cent dividend in the previous year.

The ITGI Chairman, Mr K. Srinivas Gowda, said the company has paid claims worth Rs 209 crore to 67,458 claimants. The net worth of the company stood at Rs 118.50 crore as on March 31, 2005.

Asked if ITGI intends going public in the coming days, the senior management told newspersons that it would certainly like to take the company public, but not immediately.

On whether Millea Asia Pte would agree to hike its stake to 49 per cent if the foreign direct investment limit were to be hiked from 26 per cent to 49 per cent, Mr Takaaki Tamai, Chief Executive Officer, Millea Asia, said, "we will consider it" when the FDI limit is hiked.

Mr Tamai said Millea Asia, which holds a 26-per cent stake in ITGI and is a group company of Tokio Marine, was happy with ITGI's performance.

Asked whether Tokio Marine was looking at entering life insurance in India, Mr Tamai told reporters that the opportunities in life insurance in the country were being studied and no final decision had emerged as yet.

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