Public non-life insurer Oriental Insurance Company requires Rs 3000 crore as capital for the next financial year for growth, its CMD A V Girijakumar said on Friday.
He said that the board of the company will meet on March 18, 2020, to examine the budget.
"Oriental Insurance needs around Rs 3000 crore as capital to meet the company's growth plans for the next financial year. The board of the company will meet on March 18 to examine the budget for the growth of the insurer", Girijakumar told reporters on the sidelines of a MCCI event here.
He said that in the current financial year, the company had not focussed too much on growth, but concentrated on settling claims to reduce the loss ratio of the insurer.
About the financial performance of the insurer in the current fiscal, the CMD said "We are expecting to earn a premium income of Rs 14,250 crore, representing a growth of six per cent over the last fiscal year which stood at Rs 13,450 crore".
However, he said that the growth expectations might be tailored depending on the availability of capital. "The capital could either come from the government, its promoter, or through an IPO," he said.
Girijakumar said that company is taking keen interest in promoting health insurance product 'Sanjeevani' which will be marketed from April one, 2020.
"Sanjeevani is a structured product like Ayushman Bharat which will provide a coverage of Rs five lakh to the insured. But its pricing will vary according to the insurers", he said.
He said that insurance companies should be valued not on the basis on assets, but on valuations of its liabilities.
There is also need to revaluate traditional business models like motor, health and crop which will drive the sector in the future, the CMD added.