FinMin asks general insurance costo focus on profitable businesses

 

 

THE Finance Ministry has asked state-owned general insurance companies to focus on profitable businesses and not to chase top-line but aim for improving profitability. The Government has recently infused Rs 7,250 crore in installments in three public sector general insurance companies -- National Insurance Company Limited, Oriental Insurance Company Limited, and United India Insurance Company. “We have been monitoring performance of state-owned general insurance companies and as a result they have startedlookingup.So,wewillwatch their performance this year,” Financial Services Secretary Vivek Joshi told PTI. Hopefully, he said, these companies may not require any further capital in fusion,which is why the Budget has not made anyprovision.

 

These three general insurance companies have improved their financial performance significantly,he said. For instance, he said, Oriental Insurance has earned Rs 18 crore profit in FY24 as against a loss of Rs 5,000 crore a year ago, while National InsuranceCompany narrowed its loss to Rs 187 crore from Rs 3,800 crore, and United India Insurance to a loss of Rs 800 crore as against the loss of Rs 2,800 crore in the preceding year that is FY23. New India Assurance has continued to perform well, increasing its profits from Rs 1,000 crore in FY23 to Rs 1,100 crore in FY24. In addition to the shift in focus, the government is also addressing operational issues within these insurers.