United India Insurance Registers 24Pc Net Profit Growth

Chennai: United India Insurance Company, the Chennai-headquartered public sector insurance company, has recorded a 24 per cent growth in net profit at Rs 529 crore for the year 2006-07. The company has also declared a 70.5 per cent dividend of Rs 105.77 crore on the enhanced capital of Rs 150 crore. Gross premium of the company climbed 11 per cent to Rs 3,499 crore. Of this, Rs 664 crore was contributed by fire segment, Rs 263 by marine insurance (both cargo and hull) and Rs 2,570 crore by miscellaneous items including engineering, motor, health and other insurance.

Mr Raju Sharan, Financial Advisor, said profits might have been higher but for an additional provision of Rs 163 crore on account of Accounting Standard – 15 (employee benefits). The company had taken the decision to absorb the additional provision this year itself (instead of spreading it over the next few years). The company could maintain a growth rate of 11 per cent despite a 25 per cent decline in fire and engineering insurance rates. In 2005-06, there had been a higher target for sale of shares in view of the requirements to meet wage arrears. The company hopes to attain a premium income of Rs 4,000 crore in the current fiscal.