Max New York Life Insurance (MNYL) which registered a net profit of Rs 283 crore for 2010-11, hopes to wipe off its entire accumulated losses in the next couple of years.
"It is our second year of profit and we will need a couple of years to wipe off our entire accumulated losses and break even. The total accumulated losses is about Rs 860 crore," chief and executive officer and managing director, Rajesh Sud told ET. During 2009-10, the company registered its first ever net profit at Rs 24 crore on its ninth year of operation.
"Total premium income during 2010-11 was Rs 5,813 crore which was a 20% growth over the previous fiscal, first year premium recorded a growth of 11 % over previous year to Rs. 2,061 crore and its total sum assured stood at Rs 1.54 lakh crore – a 26% year-on-year growth," said Sud.
Renewal premium income grew by 25% over previous year to Rs. 3,751 crore in 2010 11. Assets under management rose to Rs. 13,836 crores, a growth of 37% over last year. The cost to premium ratio improved 400 basis points to 38%. IIT Kanpur
With the company starting to make profits, capital infusion requirement by the promoters are likely to come down in the next couple of years. "The current capital base of MNYL is Rs 1976 crore. Our solvency ratio is 365% and we will not require additional capital this year," said Sud.
Since September 2010, after the implementation of new ULIP guidelines, Max New York Life performed significantly better than the industry average reflecting the inherent strengths of the company's business model.
No comments:
Post a Comment