MUMBAI, Aug 12: Private general insurer Bharti Axa is likely to require around Rs 200 crore in the next two years to support its future growth plans, a top company official has said.
“We are well capitalised as of now, but will need around Rs 200 crore in the coming two years to support our growth plans,” Bharti Axa General Insurance chief executive Amaranath Ananthanarayanan told PTI in an interaction here.
He also said the insurance firm is hopeful of achieving break-even in FY2014, given the current growth rate.
On expected growth rate in the current fiscal, he said the company is hopeful of posting 30-40 per cent growth in gross written premium (GWP) in this fiscal.
“When the economy doesn’t do well, the risk perception increases, which helps the general insurance industry. We stick to our previous growth projections and hopeful of posting a 30-40 per cent growth in premium collection in the current fiscal,” he said.
The gross written premium of Bharti Axa has grown 60 per cent to Rs 892 crore in FY 2012.
About growth in different segments, he said health insurance is growing faster as of now.
He also said health insurance premium may go up by around 20 per cent by the end of this fiscal after the finance ministry’s directive to the state-run general insurance players to raise premium.
About the motor insurance segment he said, “Profitability will be better after the dissolution of the third-party motor insurance, which is now replaced with declined motor pool.”
Ananthanarayanan also said the ratio of motor insurance to other segment of business will be changed in the next two years.
“At present, motor contributes around 70 per cent of the total premium, 18 per cent is by health and the rest is contributed by others. However, we are hopeful that the present ratio of 70:30 will be changed to 60:40 in the coming two years,” he said.
On the new product launch this fiscal, he said there are five to six products, which are pending for approval from the regulator and will be launched if gets approval.
Bharti Axa is the joint venture between Bharti Enterprises and the French Axa Group in which 74 per cent stake is being held by the Bharti Group. The Axa Group is a global player in insurance and asset management, had a revenue of 91 billion euros in 2010. (PTI)
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