In the first half of the 20th century, India had hundreds of small insurance companies. Some were composites, writing Life and General insurance business. Some tiny ones claimed to do Hull business but covered nothing beyond some country craft. And there were many 'captive' companies set up by industrial groups big and small, to cater mostly to their own internal needs.
Within a couple of decades of operating in this field, New India found opportunities to acquire a few select insurance companies to extend its brand identity to new geographies.
One important takeover was South India Fire and General Insurance Company (Coimbatore) Ltd., promoted by one Kuppuswamy Naidu and fellow industrialists in Coimbatore. In August 1941, New India acquired just over 80 per cent of its shares.
In the next few years, New India consolidated its hold over the company, reorganising its Board of Directors, increasing its paid up capital from R3.3 lakh to R10 lakh and creating 'Tied' connections large clients for it to grow. New India had already been guaranteeing South India's policies wherever required and this enabled the latter to build up its credibility and business.
In 1945, New India changed the name of the company to South India Insurance Company. In order to "exercise effective control on its management", as the Board minutes noted, its Head Office was moved from Coimbatore to Mumbai. With effect from December 31, 1947, South India's Life portfolio was transferred to New India's books.
In subsequent years South India, now transacting only General insurance, would develop its own systems and practices, most of it mirroring New India. This was not surprising
because many of South India's employees were on deputation from New India.
