Royal Sundaram Alliance Insurance Company Limited, a joint venture between Sundaram Finance and Royal & Sun Alliance Insurance plc, UK,announced its annual results for the year ended March 31, 2012. The Company has achieved a strong top-line growth of 29% by underwriting Rs 1479.79 crore GWP during the financial year 2011-12, as compared to GWP of Rs. 1143.99 crore, in the previous year. This robust growth makes Royal Sundaram one of the consistent performers amongst the private sector general insurance compa-nies in the Country.
The Company has also recorded a Profit after Tax (after pool loss) of Rs. 0.22 crore compared to a loss of Rs.20.1 crore in the previous financial year.
The Insurance Regulatory Development Authority (IRDA) decided to dismantle the Indian Motor Third Party Pool with effect from March 31, 2012 by way of orders issued on December 23, 2011, January 3, 2012 and March 22, 2012. IRDA also advised absorption of the losses of Third-Party Motor Pool as per the prescribed methodology in the order.
Based on this, Royal Sundarams minimum required claims provision for FY 2011-12 was Rs.117.74 crore. However, the Company, as a matter of prudence, has provided for a higher amount of Rs. 222.49 crore, towards the Motor Pool losses so that the quantum of losses to be absorbed in the next 2 years stands reduced.