The Hindu Business Line : National Insurance drafts corporate plan

Kolkata, Aug. 17 National Insurance Co (NIC) has wrapped up 2006-07 with a growth in gross premium, which stood at Rs 3,827.12 crore for the year ended March 31, 2007, up from Rs 3,536.34 crore posted in the previous year. This represents a 8.22 per cent growth.

The company recorded a net premium of Rs 2,855.36 crore, up by 6.4 per cent from Rs 2,683 crore recorded in 2005-06. Its net profit, which stood at Rs 418.07 crore, is a major step-up compared to the loss of Rs 114.64 crore recorded in the previous year.

NIC’s total assets stood at about Rs 13,600 crore in March, while its net worth was Rs 1,432.04 crore.

Corporate plan

A ‘corporate plan’ rolled out by NIC will ensure a reengineering of its business processes. This will involve aligning its strategies with the changing market scenario, brought about by, among other factors, de-tariffing. PriceWaterhouseCoopers (PwC) has been mandated as consultants, while IIM-Kolkata has been appointed advisor for the business process reengineering.

Strengthening portfolios

Mr V. Ramasaamy, CMD, NIC, maintained the company aims to strengthen its retail/personal lines as well as its health and motor insurance portfolios.

It also plans to increase its retention capacity in the profitable portfolios – fire and engineering insurance, for instance. Incidentally, there have been significant reinsurance recoveries for losses arising out of floods in Gujarat and Maharashtra.

NIC has lately designed products such as Varistha Mediclaim for senior citizens and Vidyarthi for students as part of its policy to deepen penetration. It will also strengthen its bancassurance network.

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