Max New York Life is hoping to turn profitable in 2010-11 on the back of its high product performance and growth in renewals
Private insurer Max New York Life is hoping to turn profitable in 2010-11 on the back of its high product performance and growth in renewals, a top company executive has said.
"We are expecting to turn profitable in FY11, following increase in new product sales and rise in renewals, which grew by almost 25%," Max New York Life director and chief marketing officer Anisha Motwani told PTI.
The company's renewals from April 2010 to February 2011 stood at Rs3,238 crore, a growth of 26% compared to the year-ago period.
Similarly, the total new business premium collected during the April 2010 to February 2011 period witnessed a 12% growth at Rs1,789 crore.
"We expect to collect over Rs2,000 crore new business premium in FY11," Motwani said.
The company, which has a product portfolio split is Traditional 86% and unit-linked 14%, plans to focus on enhancing its productivity.
"We are planning to focus on mass affluent segment representing 80% of new premium and whose average disposable income may to go up to Rs25.3 trillion in 2015 from Rs6.7 trillion in 2005. Going forward, the 10-year-old company, will also stress on long-term savings and protection with a minimum tenure of 10 years," she said.
The company will also focus on multi-channel distribution and quality agency distribution, she said.
The private insurer, who focuses on traditional offerings, plans to add six new products this year with a 50:50 split between traditional and ULIPs to its existing 21 offerings, she said.
Besides this, Max New York Life also has six products offerings and seven riders in group insurance business.
Max New York Life Insurance is a joint venture between Max India Limited and New York Life International, the international arm of New York Life and a Fortune 100 company.
The total capital infused is Rs1,976 crore, she said adding, it is sufficient and there will be no additional capital required for the business. The company has 521 offices spread across 389 cities across the country with about 7,500 employees.
The initial public offering of Vaswani Industries will open for subscription by investors on 29 April 2011. The IPO closes for subscription on 3 May 2011
The initial public offering (IPO) of Vaswani Industries will open for subscription by investors on 29 April 2011. The IPO closes for subscription on 3 May 2011.
The company is coming out with public issue of 1 crore equity shares of Rs10. Each for cash through 100% book building process. The price band will be announced at least two days prior to the issue opening date.
The minimum order quantity is 120 equity shares and in multiples of 120 equity shares. The maximum subscription amount for retail investor is Rs200,000.
The rating agency ICRA has assigned IPO Grading of IPO GRADE 2.
Ashika Capital is the book running lead manager and syndicate member to the IPO. Link Intime India Pvt Ltd is the registrar to the company.
Research firm Crisil projected underwriting loses of the domestic general insurance companies at Rs10,000 crore in the 2010-11 fiscal
Research firm Crisil projected underwriting loses of the domestic general insurance companies at Rs10,000 crore in the 2010-11 fiscal.
We estimate the industry's underwriting losses to increase significantly to more than Rs100 billion in 2010-11 from Rs59 billion in 2009-10, Crisil ratings director Pawan Agrawal said in a statement.
"This increase reflects weak underwriting performance, increase in reserving requirements for each of the past four years on the third-party (TP) motor insurance pool, and wage revisions in public-sector insurance companies," Agrawal added.
The rating agency however, said that the recent hike in the TP motor insurance premiums by the insurance regulator IRDA would improve the underwriting performance in 2011-12.
From today, third-party motor insurance premiums have increased by 10% for private cars and two-wheelers and 68% for goods and passenger vehicles.
"We view the rate hike in the TP motor insurance as a step towards containing the general insurance industry's mounting underwriting losses," Crisil ratings head Rupali Shanker said.
The hike in the rates would improve the general insurance industry's combined ratio to around 110% in 2011-12, from an estimated 132% in 2010-11.
A high combined ratio indicates weak underwriting performance. A combined ratio of more than 100% indicates underwriting losses.
Third-party motor insurance is the only segment in the general insurance category whose tariffs are regulated.
The TP motor insurance segment is marked by unlimited liability and numerous instances of inflated and fraudulent claims, Crisil said.
"This rate hike is inadequate to cover the substantial losses incurred in this segment; premium rates need to more than double from the 2010-11 levels for the industry to make underwriting profits in this segment," the statement said.
Prudent underwriting practices marked by risk-based pricing across key segments, effective claims management, and lower operating expenses remain an imperative to further improving the general insurance industry's overall underwriting performance, it added.