CHENNAI: State-owned New India Assurance Co. Ltd (NIA) on Sunday said it is set to launch its Rs 9,600 crore initial public offering (IPO) on November 1. The insurance company has set a price band of `770-800 per share for the IPO, which values it at Rs 64,392-67,940 crore. The offer will close on November 3.
The company intends to support growth and and cost-effective expansion of business, capitalize on significant market potential and increase market share, and improve underwriting profitability by minimizing errors, developing accurate underwriting models and replacing loss-making schemes and channels with profitable options said G. Srinivasan, chairman and managing director of NIA.
Further, the company said last year there was a spurt in loanee farmers in Tamil Nadu opting for crop insurance. “While 65 per cent were loanee farmers, the remaining were non-loanee,” he added. However, overall the government is looking to take the total number of insured farmers to 40 per cent by 2019, up from 25 per cent now.
Another problematic segment, which is the motor third party segment, the premium increase that is happening every year has improved the situation bringing down the loss ratio. The loss-ratio is likely to come down further with the regular price increases. Another structural change, which is the Motor Vehicles Amendment Bill, is in the Parliament is also a positive development and is expected to bring down the number of accidents on Indian roads.
This bill has also set a time limit of six months for filing claims and has a mechanism for quicker settlement of claims. On its global expansion plans, he said, “We are planning to get into the special economic zone shortly. In areas like Qatar and Dubai, it is in progress. Our strategy will be to strengthen the current markets and expand further.