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Performance highlights for the year 2002-03

2002-03 was yet another year of impressive growth and improved results.

  • Global Gross Premium: New India posted a total Global premium of Rs.4812.79 Crs (US $1.01 billion) achieving a growth rate of 14.64%
  • Domestic: Indian Direct Premium of Rs.3921.24 Crs as against Rs.3512.33 Crs registering an accretion of 11.64%. In absolute term Rs.408.91 Crs were added.
  • Foreign: Outside India a premium of Rs.891.55 Crs was booked in the year 2002-03 as against Rs.685.73 Crs clocking a growth of 30.01%
  • Operating Expenses: Operating expenses have shown a marginal increase of 0.76% i.e. from 24.69% to 25.45% of the net premium. Quantum increase is of Rs.137 Crs. This includes provision of Rs.43 Crs towards leave encashment and Rs.73 Crs for doubtful debts. Acquisition costs have accounted for Rs.193 Crs as against Rs.80 Crs of previous year due to steep increase of commission payment. Commission percentage to net premium increase to 5.49% from 2.60%. The increase in commission outgo due to revision in commission rate and introduction of new categories of intermediaries in the market.
  • Management Expenses: Company continues to be within section 40C limits. Against allowable expenses of Rs.767 Crs (19.56% of GDP) the actual expenses are Rs.727 Crs. (18.53% of GDP)
  • Solvency Margin: Solvency Margin of the Company is 3.35 times of required margin. (Against RSM of Rs.906 Crs. As ASM is Rs.3126 Crs)
  • Net Financial Results: Net underwriting loss after credit of investment income (Less provisions) apportioned to policyholders has come down from Rs.88 Crs to Rs.24 Crs. The main reason being decrease in incurred claims in Motor Dept. from 119% to 85%. Net Investment income of Rs.762 Crs. (includes Rs.466.17 Crs. Apportioned to Policyholders and Rs.295.97 Crs to Shareholders) could off set the underwriting deficit. Net Profit after tax has shown an increase of 80% i.e. from Rs.142 Crs to Rs.255.81 Crs. Net worth per share appreciated to Rs.340.40 from Rs.318.94. Total Technical Reserve (unexpired risk reserve plus provision for outstanding claims duly valued by Appointed Actuaries as stipulated by IRDA) stands at Rs.5737.51 Crs., an increase of Rs.763.97 Crs over Rs.5023.57
  • Dividend: Rs.40 crores (40%) has been declared as dividend, which is highest quantum paid.
  • Financial Rating: Company is rated as 'A' (Excellent) by A.M. Best & Co. for the fourth year in succession.
  • Plans for 2003-04
    • Domestic: For the year 2003-04 we have planned for a target of Rs.4100 Crs.
    • Foreign: The premium objective for 2003-04 is aimed at Rs.935 Crs gross.
  • Information Technology: New India is all set to embark on the implementation of GENISYS ENTERPRISE- the customised enterprise solution being procured from CMC. GENISYS ENTERPRISE is an umbrella application that will address to enterprise wide requirements of the Company. Wide Area Network connecting all our Regional Offices (except Nagpur) with Head Office through leased lines is already in place. Currently being used for voice transfer and data transfer. Today, the database across the organization is a distributed one. With GENISYS ENTERPRISE, the data from operating offices will be replicated at a repository at Regional Office and through WAN connectivity, at the Central repository at the Head Office. GENISYS ENTERPRISE will enable Operating Office data exchanges, data integration with lateral and higher office and enterprise wide data consolidation. It will enable business intelligence and multi-dimensional analysis of data.