L&T General Insurance Company (LTGI) has incurred a loss of Rs 106 crore in its first full financial year of operations in 2011-12.
LTGI,a wholly-owned subsidiary of engineering major Larsen & Toubro,had received the regulatory approval to operate as a general insurer in July,2010. It commenced operations in October that year.
“The existing resources being properly re-deployed and utilised resulted in motor line showing a significant growth.
However,lower price realisation in this line has resulted in higher loss ratio. The loss in the current year stands at Rs 106 crore,” L&T said in its latest annual report.
LTGI operates mainly in areas including fire,marine,motor,public liability,group personal accident and group health insurance.
“LTGI in its second year of operations and first full financial year,achieved Gross Written Premium of Rs 143 crore by selling nearly hundred thousand policies (97,766) and was the fastest growing insurance company in India in 2011-2012,” L&T said.
L&T said delay in getting approval of health products had resulted in lower achievement of LTGI’s health business during 2011-12.
“The company’s prudent underwriting practices resulted in lower levels of engineering business where the market did not support by adequate increase in price realisation,” it added.
LTGI has a “pan-India” presence with 10 branch offices as hub locations,it said.
Going forward,the growth momentum in country’s general insurance industry was expected to continue and LTGI is well- positioned to exploit the growth opportunities.
The top-line of the Indian general insurance industry recorded an impressive 23 per cent growth to Rs 58,344 crore in 2011-2012,L&T said.