ANNUAL REPORT 2007-08
premium as against 56.28 per cent in 2006-07. Marine segment contributed the least at 6.47 per cent in 2007-08.
Premium Underwritten Outside India
GROSS DIRECT PREMIUM FROM BUSINESS OUTSIDE INDIA : NON-LIFE INSURERS
The public sector general insurers have also been underwriting premiums outside India. The total premium underwritten outside the country by them was however lower at Rs.981.36 crore in 2007-08 than Rs.1024.54 crore in 2006-07 registering a negative growth of 4.22 per cent. Measured in terms of the total premium underwritten by the public insurers, 5.51 per cent of the business accounted for premium underwritten outside India (5.93 in 2006-07).
New India is having operations in 27 countries through a network of branches, agencies, associate companies and subsidiaries. Premium underwritten outside India by the company constituted 14.22 per cent (15.49 per cent in 2006-
of the total premium underwritten by the company in 2007-
Oriental has a small component of overseas business
with 2.36 per cent (2.29 per cent in 2006-07). In the case of National Insurance, the outside India business was 0.37 per cent (0.33 per cent in the previous year).
RATIO OF OUTSIDE INDIA PREMIUM TO TOTAL PREMIUM
Note : Figure in brackets indicate the growth rate over previous year
Oriental Insurance underwrote a premium of Rs.92.07 crore outside India in 2007-08 as against Rs. 92.26 crore in 2006-
United India had ceased operations outside India in 2003-
Of the total premium of Rs.981.36 crore written outside India in 2007-08 National has underwritten a premium of Rs.14.74 crore (Rs.12.70 crore in 2006-07) and New India Rs.874.55 crore (Rs.919.58 crore in 2006-07).
The underwriting losses incurred by the public and private sector insurers during the year 2007-08 increased to Rs. 3899.49 crore from Rs. 2557.54 crore in the previous year. The public sector insurers during the year 2007-08 have incurred underwriting losses to the tune of Rs.3300.59 crore as against Rs. 2451.12 crore in 2006-07. As a percentage of net premium, the underwriting losses have increased to 23.81 per cent in 2007-08 from 18.83 per cent in 2006-07. This ratio ranged between 2.19 and 28.55 per cent across the private insurance companies. In 2006-07, this ratio was in the range of 1.43 to 12.53 per cent. For the public sector insurers the ratio of underwriting loses to net premium ranged between
and 31.58 per cent (14.38 and 30.80 per cent in 2006-
. Asignificant increase in underwriting losses was observed
across all the four public sector insurers, causing a concern. The underwriting losses of National Insurance were 30.54 (19.73 in 2006-07); followed by New India at 17.55 (14.38); United