General Insurance: Oriental Insurance Company profit up nearly 5-fold at Rs 253 cr

State-owned Oriental Insurance today announced nearly 5-fold jump in net profit at Rs 253 crore in 2011-12 driven by better claim management and reduction in underwriting losses.

The insurance company had posted a net profit of Rs 55 crore in the previous fiscal.

“We improved our claim management and reduced our expenses. At the same time, we moderated our growth by underwriting good policies during 2011-12,” Oriental Insurance Company Chairman cum Managing Director A K Saxena said.

The company collected a total premium income of Rs 6,195 crore in 2011-12 against Rs 5,570 crore in the previous fiscal, registering a growth of 11.22 per cent.

The investment income, however, earned by the company declined by 10.4 per cent to Rs 1,610 crore during the year as against Rs 1,797 crore in 2010-11.

The decline was due to bad stock market condition, Saxena said.

During 2011-12, the company invested Rs 425 crore in the stock market. In the current fiscal, the company has invested Rs 190 crore in the equity market so far against target of about Rs 400 crore for the entire fiscal.

The company, which is 100 per cent owned by the government, has declared a dividend of Rs 50.67 crore for 2011-12.

Asked about the network expansion plan of the company, Saxena said the company has plans to open 500 one-man offices in the rural areas in the coming months.

Besides, the company has got regulatory approval for setting up office in Qatar. Currently, it has operations in Nepal, Kuwait and Dubai.

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