RR Singh, CMD, Oriental Insurance Company
“We have been implementing a well placed strategy to achieve profitability in Fy 24. We dropped many big loss making accounts including group medical coverages ( GMC). We had the courage to leave one health account of Rs 1600 crore premium where we incurred claim ration was too high. We managed to reduce our incurred claim ratio (ICR) by almost 20 per cent in Health portfolio, which contributes 42 per cent of our total premium,’’ explained RR Singh, CMD, OIC
New Delhi: In one of the scintillating turnaround story in the country’s corporate history, after years of severe hardship, Delhi based state owned Oriental Insurance Company(OIC) has finally back in the black with improving financial parameters in Fy 24.
With lower underwriting losses and higher investment income, the insurer has made a modest profit of Rs37.66 crore in FY 24 as compared to a massive loss of Rs 4956 crore in Fy 23.
Combined ratio of the company has fallen to 121.4 per cent in FY 24 from 154.58 per cent in FY 23.
Underwriting losses of the insurer has fallen by more than half to Rs 3468 crore in FY 24 from Rs 7477 crore in FY 23.
The company’s investment income has soared by almost 40 per cent to Rs 3835 crores in FY 24.
OIC’s asset under management (AUM) also risen by almost 40 per cent to Rs 48,977 crores in FY 24 as against Rs 35,167 crores of FY 23.
The general insurer, with a market share of 6.31 per cent, had ended FY24 with a total premium of Rs 18,825 crore, up 17 per cent over Rs15,614 crore in Fy23.
How did OIC, which was hit hard with all kind losses for over five years, achieved the profitability in FY 24?
RR Singh, CMD, OIC,explained “We have been implementing a well placed strategy to achieve profitability in Fy 24. We dropped many big loss making accounts including group medical coverages ( GMC). We had the courage to leave one health account of Rs 1600 crore premium where incurred claim ration was too high. We managed to reduce our incurred claim ratio (ICR) by almost 20 per cent in Health portfolio , which contributes 42 per cent of our total premium.’’
Couple of other measures, the insurer resorted for drastically cutting down losses are – lowering Motor OD ICR through various loss control measures, devising appropriate commission structure for encouraging profitable premium, quick settlement of claims resulting in reduction of ICR, elaborated Singh.
“We have an outstanding team of general mangers (GMs) at head office which brought efficiency in every aspects. Their client connect helped in increasing the top line. We also motivated our staff and they worked very hard in achieving this result. Our investment department also excelled in every parameters,’’ added Singh
Continuing its positive momentum towards growth and profitability, the company has entered into FY 25 with a promising note.
“We were able to retain almost all of our big accounts in April 1 24 renewals and our growth of April was almost 10 per cent,’’ said Singh.
Among the major plans for FY 25, OIC wants profitable growth in all line of business,( LOBs), reduction in Motor OD ICR,- emphasis on compromise settlement of motor third party claims (TP) claims, continuing the cautious approach in Health under writing, increase in company’s digital/online premium through its new state of the art web portal, which was launched recently, Singh announced.
OIC has been waiting long for adequate capital from the government so that it can improve its solvency ratio.
“No idea about any capital from the government. Not having required solvency is a challenge when going for private tenders. But normal business is not affected,’’ quipped Singh.
Whether OIC employees can expect a wage hike soon, Singh said ,“ No negotiation for wage revision has started yet.’’
Analysts say, the other PSU general insurers- National Insurance and United India Insurance are also likely to be profitable in FY 24.
Outstanding performance, Kudos to the new team of General Managers n the CMD for the same. I hope that solvency margin might have improved too.
Wrong statement. Agent payout and claims it didn’t pay and show profit in the financial year
Claims are very pending and agent payout reduced to very low
Quite possible, accounting pattern and strategy can play a big role in presenting the financial position of the company. Hope the fair accounting and provisioning are done, otherwise the next CMD will have to face the issue, during his ensuing tenure.
CONGRATULATIONS TO OUR CMD SHRI R.R.SINGH AND ALL OTHER GENERAL MANAGERS & THE ENTIRE TEAM OF EMPLOYEES FOR THIS GREAT ACHIEVEMENTS. KEEP IT UP.
Congratulations to our CMD Sh R R Singh for outstanding performance and regain the past glory of OICL through the divination of process company will give better results in fy 25 too once again Congratulations to all GMs and oicians
Very good efforts put in by OICL. Great. Hearty congratulations to OIC and All the Best
Outstanding performance. Congratulations to the Team OICL headed by Sri R R Singh as CMD.
Hearty Congrats to our Oicl Team for thus splendid Achievement.
Our responsibility should continue with more & sincere efforts for F.y 2024 _25.
Hard work & loyality are the strong factors for success in F.Y 2024_25.
Keep it up
Trust, necessary provisions in place for SVRS 2003/2004 whose wage revision case as per pay scales of 2002 is still pending. These people retired in 2003/2004 but their salaries / pension not updated as per 2002 pay scales and are into litigation / struggling for revisions as per Pay scales of 2002.
Congratulations to Mr RR Singh CMD and his team for achieving the wonderful Financial and Business Results for the FY 2023-24 . Wish OICL Will continue its efforts to do moch better in current Financial Year . Well done oicians.
Congratulations to OIC team. This is an incredible milestone. I wish the same trend continue for ever.
Congratulations CMD sir & Oriental team for concentrated efforts & nice achievement.
Congratulations to the entire team of OICL being headed by Sh.R.R.Singh for the Excellent performance. We hope under his dynamic leadership company will show profitability with growth in 2024-25.My Best Wishes.
Congratulations to CMD R.R.Singh Sir and his entire team of Oriental Insurance for achieving glory of Company.Thanks to all.
Heartiest congratulation to entire team of oriental under the dynamic leadership of Mr. R R Singh CMD OF THE company
Congratulations to the entire team of OICL being headed by Sh.R.R.Singh for the Excellent performance. We hope under his dynamic leadership company will show profitability with growth in 2024-25.My Best Wishes. company will show profitability with growth in 2024-25.My Best Wishes for the next financial year.
Well done sir, It’s a great achievement in the difficult times. As an Ex-officer of Oriental I would like to share my happiness and congratulations to the team at HO and Operating Offices.
Congratulations to Oriental team
Excellent
It’s done through the strategy of CMD, OIC & team work of oicion s congrats to CMD Sir and team oicion
Excellent stetagy opted by cmd, good teamwork, excellent selection of head of regional incharges
Still market required hard decisions.
Congratulations for good team work and effort carried by yourself.
Kudos to OICL. Keep it up
My best for Financial year 2024-25. Thank you the OICL team.
Congratulations to entire team of Oriental Insurance Co
Excellent performance in balancing losses of previous year and making profit in FY 24, is really commendable work by each one of the OICL. It’s team work, no doubt without support of head of the organisation it’s difficult to achieve. Keep progressing best wishes
Congratulations to Mr. R.R. Singh, GMs and the entire OICIAN team for the turnaround. I am sure the momentum will be maintained in the coming years led by the able leadership of Mr. Singh and the top management. Look forward to the year 2024-25 and the future years. My best wishes to all OICians and their families.
Congratulations to worthy CMD and the entire team for achieving this milestone. Keep it up for the next financial year also. Together you can do it.
Congratulations to our CMD Sh R R Singh for outstanding performance and regain the past glory of OICL through the divination of process company will give better results in fy 25 too once again Congratulations to all GMs and oicians
A big congratulations to all the team oician.
What a great achievement!! By reducing Commission rate to Agents who are the backbone of the Company, while the private Companies are offering lucrative commission to their agents.
They cheat you when it comes to claim settlement. My claim with them is pending since April 9 2024, and it’s just moving from table to table like old times in govt offices
Today they asked me not to call
Their profits are our cheated money
Very very bad company
The company has tried to earn extra money from each policy holder. They have charged almost 1.5 times more of their yearly premium. This time company has played very smartly to get the premium online or digitally.
Congratulations to All OICIENS
Motor OD claim settelment is very poor.