June 23, 2004 | Financial Express

Tata AIG hopes to break even by FY06

Tata AIG General Insurance is hoping to achieve 40-45 per cent growth in premium business at over Rs 500 crore during the current financial year. It is hoping to break even by 2005-2006.

We have budgeted 40-45 per cent growth in premium income in 2004-05, while premium income in previous financial year was estimated at Rs 353 crore, Tata AIG managing director Dalip Verma told reporters after launching a new scheme Green Channel Settlement here on Tuesday.

Mr Verma added the company, which is the third largest among private players, was not looking at topline and instead the focus was on growth in net premium income, while maintaining a balanced portfolio.

We hope to break even in one or two years, most likely in March end 2006 by wiping out entire losses, he said.

Tata AIG has a capital base of Rs 125 crore, which is sufficient to meet IRDA's solvency norms.

The two promoters were committed to hike the capital as and when required, Mr Verma said.

Tata AIG has offices in 11 cities and offers wide range of products for automobiles, home, personal accident, travel, energy, marine and property.

However, 75 per cent of the total business comes from the auto sector. The company started operations in January 2001.

Meanwhile, to make vehicle accident repairs and claims easier for customers, the company launched a new scheme Green Channel Settlement on Tuesday.

The new scheme offers warranty on accident repairs to all customers having Tata AIG's auto insurance.