`For FY 25, the company is targeting to grow its premium income in a single digit of around 5 per cent to 8 per cent. With continued efforts on claim management initiatives, the company is confident of maintaining the healthy claims ratio and confident of making the underwriting surplus,’’ said Girija Subramanian, outgoing CMD of Agriculture Insurance Company
New Delhi: Despite paying Rs12,353 crore of claims in FY 24 , state owned Agriculture Insurance Company(AIC) has recorded almost a 20 per cent jump in its net profit to Rs 904 crore during the year.
The company’s gross direct premium (GDP) has fallen by 32 per cent to Rs 9,742 crore in FY 23-24 as there was a bit of unhealthy competition among insurers leading to a significant price cut in crop business during the year.
“With the kind of competition in terms of pricing we have faced in Fy 24, we have preferred not to grow our top line during the year,’’ said Girija Subramanian, CMD, AIC.
Subramanian on Wednesday received approval from the Appointments Committee of Cabinet(ACC) to take over as the CMD of New India Assurance.
Not only that, beating its bigger rivals, the multiline general insurers, who also underwrite crop insurance, AIC has registered an underwriting profit of Rs. 91 crores in FY 24 as against Rs. 111 crores during FY 23.
“The company has been consistently making underwriting profit since its inception except couple of years where the claims were high due to widespread catastrophic events,’’ said Subramanian..
The combined ratio of the insurer has remained positive at 99 per cent during FY 24 as against the 98.31 per cent during FY 23.
AIC’s Incurred claim ratio was at 95.59 per cent during FY 24 as against 94.35 per cent during FY 23.
The company’s investment income has risen by 25 per cent to Rs 1142 crores during FY 24 as against Rs 920 Crores during FY 23.
AIC’s assets under management (AUM) of the company stands at Rs 15,550 crores as at 31st March 24 as against Rs 15,900 crore as at 31st March 23.
The top five states where AIC earns maximum premium are:Rajasthan, Maharastra, Madhya Pradesh,Karnataka and Chattisgarh
“For FY 25, the company is targeting to grow its premium income in a single digit of around 5 per cent to 8 per cent. With continued efforts on claim management initiatives, the company is confident of maintaining the healthy claims ratio and confident of making the underwriting surplus,’’ added Subramanian.
Post obtaining licenses for allied lines of agriculture business in May 2022, AIC has been working on new products across new lines of business such as livestock/ aquaculture / sericulture/ parametric products for weather related to specific horticulture crops, said Subramanian.
Currently the company is working on creating a strong distribution network across banks / CSC and also building a intermediary network for selling the various products available. The company has registered a premium of Rs. 39 crores in FY 24 in this vertical and plans to sell around Rs 150 crores next year on the strength of digitally enabled products and a new rural focussed distribution network, elaborated Subramanian.