MIRA INFORM REPORT

 

 

Report Date :

09.03.2011

 

IDENTIFICATION DETAILS

 

Name :

THE NEW INDIA ASSURANCE COMPANY LIMITED

 

 

Registered Office :

New India Assurance Building, 87, M.G. Road, Fort, Mumbai – 400 001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

23.07.1919

 

 

Com. Reg. No.:

11-000526

 

 

CIN No.:

[Company Identification No.]

U99999MH1919GOI000526

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMT08494D

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Insurance Company

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (60)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 297208000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having fine track. Financial position of the company appears to be sound. Trade relations are fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered good for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INFORMATION DECLINED BY

 

Management non-cooperative

 

LOCATIONS

 

Registered/ Corporate Head Office :

New India Assurance Building, 87, M.G. Road, Fort, Mumbai – 400 001, Maharashtra, India 

Tel. No.:

91-22-22708220/ 22708100

Fax No.:

91-22-22652811/ 22670865

E-Mail :

cmd.nia@newindia.co.in

Website :

http://newindia.co.in

 

 

Domestic Offices :

Located at:

 

 

 

Overseas Offices :

Located at:

 

  • United Kingdom
  • Ghana
  • United Arab Emirates
  • Dutch Caribbean
  • Netherlands Antilles
  • Trinidad and Tobago 
  • Sierra Leone
  • Nigeria
  • Kuwait
  • Bahrain
  • Saudi Arabia
  • Kenya
  • Australia
  • New Zealand
  • Fiji
  • Philippines
  • Thailand
  • Japan
  • Hong Kong
  • Malaysia
  • Singapore
  • Mauritius 

 

 

DIRECTORS

 

As on 16.08.2010

 

Name :

Mr. Madhuswamy Ramadoss

Designation :

Chairman cum Managing Director

Address :

A 16, Mayfair Garden, Little Gibbs Road, Malabar Hill, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

02.12.1953

Date of Appointment :

30.12.2009

DIN No.:

00494199

 

 

Name :

Mr. Rajarangamani Gopalan, I.A.S. 

Designation :

Director

Address :

C II/18, Bapa Nagar, New Delhi – 110 003, India

Date of Birth/Age :

20.04.1952

Date of Appointment :

16.02.2010

DIN No.:

01624555

 

 

Name :

Mr. Devadas Mallya Mangalore

Designation :

Director

Address :

11A, Woodland Apartments, Dr. G. Deshmukh Marg, Peddar Road, Mumbai – 400 026, Maharashtra, India

Date of Birth/Age :

09.11.1952

Date of Appointment :

20.10.2008

DIN No.:

01804955

 

 

Name :

Mr. Mohamed Razzack

Designation :

Director

Address :

No.976, Poonamallee High Road, Chennai – 600 084, Tamilnadu, India

Date of Birth/Age :

30.04.1947

Date of Appointment :

27.08.2007

DIN No.:

00766697

 

 

Name :

Mr. Sanjay Gupta

Designation :

Director

Address :

204, Royal Garden, 203, New Palasia, Indore – 452 003, Madhya Pradesh, India

Date of Birth/Age :

09.05.1962

Date of Appointment :

27.08.2007

DIN No.:

01792165

 

 

Name :

Mr. Sarat Chandra Pattanayak

Designation :

Director

Address :

C 301, Nilanchal Apartment, Plot No.3, Sector 4, Dwarka, New Delhi – 110 075, India

Date of Birth/Age :

15.08.1956

Date of Appointment :

27.08.2007

DIN No.:

02192628

 

 

Name :

Mr. Annur Rajagopal Sekar

Designation :

Whole Time Director

Address :

10A, IL Palazzo, Little Gibbs Road, Malabar Hill, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

22.03.1954

Date of Appointment :

05.03.2007

DIN No.:

00015431

 

 

Name :

Mr. Inderjit Singh Phukela

Designation :

Whole Time Director

Address :

Flat No.2, Ground Floor, Mayfair House, Little Gibbs Road, Malabar Hill, Mumbai – 400 006, Maharashtra, India

Date of Birth/Age :

18.02.1952

Date of Appointment :

20.01.2010

DIN No.:

01896812

 

 

Audit Committee :

M. Razzack (Chairman)

Tarun Bajaj, IAS (Chairman) (Ceased - 16.02.2010)

M.D. Mallya

Sanjay Gupta (Appointed - 30.03.2010)

N.S.R. Chandraprasad (Ceased - 04.06.2009)

A.R. Sekar (Appointed - 17.08.2009)

 

 

Investment Committee :

M. Ramadoss (Chairman) (Appointed - 04.02.2010)

B. Chakrabarti (Chairman) (Ceased - 30.09.2009)

Tarun Bajaj, IAS (Ceased - 16.02.2010)

M.D. Mallya

Sanjay Gupta

A.R. Sekar

A.R. Prabhu

 

 

Remuneration Committee :

R. Gopalan, I.A.S. (Chairman) (Appointed - 30.03.2010)

Tarun Bajaj, I.A.S. (Chairman) (Ceased - 16.02.2010)

M.D. Mallya

M. Razzack

 

 

Risk Management Committee :

M. Ramadoss (Chairman)

Sanjay Gupta

A.R. Sekar

I.S. Phukela

 

 

Policyholders’ Protection Committee :

M. Ramadoss (Chairman)

M. Razzack

Sarat Pattanayak

A.R. Sekar

I.S. Phukela

 

 

KEY EXECUTIVES

 

Name :

Mr. A.R. Sekar

Designation :

Financial Advisor

 

 

Name :

Gopa Ray

Designation :

Chief Vigilance Officer (Upto 19.04.2010)

 

 

Name :

Mr. N. Tobdan

Designation :

Chief Vigilance Officer (19.04.2010 To 30.06.2010)

 

 

Name :

Mr. A.R. Sekar

Designation :

Chief Vigilance Officer (From 01.07.2010)

 

 

Name :

Mr. A.R. Prabhu

Designation :

Appointed Actuary

 

 

Name :

Mr. A.R. Sekar

Designation :

Company Secretary (Upto 13.08.2010)

 

 

Name :

Mr. Vimal Chand Jain

Designation :

Company Secretary

Address :

212, Kalpataru Heights, Dr. A.R. Nair Road, Agaripada, Mumbai – 400 011, Maharashtra, India

Date of Birth/ Age :

04.07.1958

Date of Appointment :

13.08.2010

 

 

Name :

Mr. A.R. Sekar

Designation :

General Manager

 

 

Name :

Mr. S. Gopalakrishnan

Designation :

General Manager

 

 

Name :

Ms. Asha Nair

Designation :

General Manager

 

 

Name :

Mr. I. S. Phukela

Designation :

General Manager

 

 

Name :

Mr. S. B. L. Gour

Designation :

General Manager

 

 

Name :

Mr. R. K. Deka

Designation :

General Manager

 

 

Name :

Mr. Vasanth Krishna *

Designation :

General Manager

 

 

Name :

Mr. P. Manokaran

Designation :

Deputy General Manager

 

 

Name :

Mr. A.P. Mittal *

Designation :

Deputy General Manager

 

 

Name :

Aswatha Narayana *

Designation :

Deputy General Manager

 

 

Name :

Mr. Narinder Kumar

Designation :

Deputy General Manager

 

 

Name :

Mr. C.J. Philip

Designation :

Deputy General Manager

 

 

Name :

Mr. V. Hari Srinivas

Designation :

Deputy General Manager

 

 

Name :

Anil Kumar

Designation :

Deputy General Manager

 

 

Name :

Mr. G.C. Sharma

Designation :

Deputy General Manager

 

 

Name :

Mr. N. Toppo *

Designation :

Deputy General Manager

 

 

Name :

Mr. Sudip Sinha *

Designation :

Deputy General Manager

 

 

Name :

Mr. K.L.R. Babu

Designation :

Deputy General Manager

 

 

Name :

Mr. J.P. Sheokand

Designation :

Deputy General Manager

 

 

Name :

Mr. P. Dutta

Designation :

Deputy General Manager

 

 

Name :

Mr. Ahmed Rafi

Designation :

Deputy General Manager

 

 

Name :

Mr. S. Sivaraman

Designation :

Deputy General Manager

 

 

Name :

Mr. A.N. Jha

Designation :

Deputy General Manager

 

 

Name :

Mr. P. Senthil Kumar

Designation :

Deputy General Manager

 

 

Name :

Mr. P.G. Joshi *

Designation :

Deputy General Manager

 

 

Name :

Mr. S. Banarji

Designation :

Deputy General Manager

 

 

Name :

Mr. Rakesh Kumar

Designation :

Deputy General Manager

 

 

Name :

Mr. S. Segar

Designation :

Deputy General Manager

 

 

Name :

Mr. K. Surya Rao

Designation :

Deputy General Manager

 

 

Name :

Mr. M.M. Hussain

Designation :

Deputy General Manager

 

 

Name :

Mr. K.V. Krishna

Designation :

Deputy General Manager

 

 

Name :

Mr. K.V. Rao          

Designation :

Chief Manager (Agency Performance Enhancement Performance Department)

 

 

Name :

Dr. Uppal R K         

Designation :

Chief Manager (Agency, Class II Cell, IBD (Admn), Publicity, Marketing Department)

 

 

Name :

Mr. Garg J K           

Designation :

Chief Manager (Auto Tie-up Department)

 

 

Name :

Mr. Radhakrishnan Girish          

Designation :

Chief Manager (Aviation Department)

 

 

Name :

Mr. Fakhri Z F         

Designation :

Chief Manager (Business Process Redesigning, R & D Department)

 

 

Name :

Mr. Singh Kamal     

Designation :

Chief Manager (Brokers, Bancassurance, Corp Agency Department)

 

 

Name :

Mr. Amaladoss I V  

Designation :

Chief Manager (Central Accounts Department)

 

 

Name :

Mr. Gejji S H           

Designation :

Chief Manager (Central Accounts Department)

 

 

Name :

Mr. Ravishankar K   

Designation :

Chief Manager (Central Accounts Department)

 

 

Name :

Mr. Sahu P K          

Designation :

Chief Manager (Chief Liaison Officer, I.D.D. Department)

 

 

Name :

Mr. Sahai Atul         

Designation :

Chief Manager (Corporate HRM- Class I, III & IV & Training Department)

 

 

Name :

Mr. Samiran Bhattacharya         

Designation :

Chief Manager (Corporate Training College Department)

 

 

Name :

Mr. Rajesh Prakash 

Designation :

Chief Manager (Credit Insurance Risk Office Department)

 

 

Name :

Mr. Sarkar Amitava  

Designation :

Chief Manager (Engineering Department)

 

 

Name :

Mr. Joglekar S V     

Designation :

Chief Manager (Estate and Establishment Department)

 

 

Name :

Mr. Dange A B        

Designation :

Chief Manager (EWS, Legal, Library, MBS Department)

 

 

Name :

Dr. Chiranjeevi Reddy S

Designation :

Chief Manager (Fire Department)

 

 

Name :

Mr. Gangadharan Renjit

Designation :

Chief Manager (Foreign Business Department)

 

 

Name :

Dr. A. C. Borgohain 

Designation :

Chief Manager (Grievance Cell, Customer Service, R.I.D. Department)

 

 

Name :

Dr. Khamrai M C     

Designation :

Chief Manager (Health Department)

 

 

Name :

Mr. Rajamohan B    

Designation :

Chief Manager (Information Technology Department)

 

 

Name :

Mrs. Rajan Gouri     

Designation :

Chief Manager (Information Technology Department)

 

 

Name :

Mr. Behera P K       

Designation :

Chief Manager (Information Technology Department)

 

 

Name :

Mr. Singh R M        

Designation :

Chief Manager (Internal Audit, Budget Department)

 

 

Name :

Mr. Sethuraman K R     

Designation :

Chief Manager (Investment Department)

 

 

Name :

Mr. Jain V C           

Designation :

Chief Manager (Investment, Board Secretariat Department)

 

 

Name :

Mr. Vasudeva A P   

Designation :

Chief Manager (Legal O.D. Department)

 

 

Name :

Mr. Shenoy A.R.     

Designation :

Chief Manager (Legal TP Department)

 

 

Name :

Dr. Kumar Surinder  

Designation :

Chief Manager (Legal, CPI cell Department)

 

 

Name :

Mr. Singh Sanjiv      

Designation :

Chief Manager (Marine Cargo Department)

 

 

Name :

Mr. S. N. More        

Designation :

Chief Manager (Marine Hull Department)

 

 

Name :

Mrs. Behere Sanjeevani

Designation :

Chief Manager (Miscellaneous Accident Technical Department)

 

 

Name :

Mr. Hariharan R       

Designation :

Chief Manager (Motor Technical Department)

 

 

Name :

Mr. Nilekani D H      

Designation :

Chief Manager (Performance Management System, De-tariffing Business Department)

 

 

Name :

Mr. Sinha P K         

Designation :

Chief Manager (Property Cell Department)

 

 

Name :

Mrs. Rekha Gopalakrishnan       

Designation :

Chief Manager (Reinsurance Department)

 

 

Name :

Mr. Shreeram S R   

Designation :

Chief Manager Reinsurance (Accounts Department)

 

 

Name :

Mr. G. Rajakumar    

Designation :

Chief Manager [Reinsurance (Fac Inward Department)]

 

 

Name :

Dr. Ballaswamy       

Designation :

Chief Manager (RID, Health Insurance Department)

 

 

Name :

Mr. Damle Y.M.      

Designation :

Chief Manager (Techno Marketing Department)

 

 

Name :

Dr. Srivastava A.B. 

Designation :

Chief Manager (Vigilance Department)

 

*On deputation to other companies / foreign offices

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 16.08.2010

 

Names of Shareholders

 

 

No. of Shares

Government of India

 

199999960

Madhuswamy Ramadoss

 

4

Tarun Bajaj

 

4

Annur Rajagopal Sekar

 

4

Inderjit Singh Phukela

 

4

Narayanan Shankara Gopalakrishanan

 

4

Asha Nair

 

4

Beharilal Sudhanshu Gour

 

4

Nawang Tobdan

 

4

Parijat Dutta

 

4

Sampathkumar Segar

 

4

Total

 

200000000

 

As on 16.08.2010

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Government [Central and State]

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Insurance Company

 

 

 

 

GENERAL INFORMATION

 

No. of Employees :

19958 (Approximately)

 

 

Bankers :

Not Available

 

 

 

Banking Relations :

--

 

 

Financial Institution :

Aether Aircraft 1 Limited, Block 1, Booters Town Hall, Booterstown Avenue, Dublin, Ireland, Dublin – Co, Ireland

 

 

Auditors :

 

Name :

Chaturvedi and Shah

Chartered Accountants

Address :

714-715, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400 001, Maharashtra, India

 

 

Name :

Karnavat and Company

Chartered Accountants

Address :

Kitab Mahal, 1st Floor, 192, Dr. D.N. Road, Mumbai – 400 021, Maharashtra, India

 

 

Name :

Ford, Rhodes, Parks and Company

Chartered Accountants

 

 

Associates
  • India International Insurance Private Limited, Singapore
  • Kenindia Assurance Company Limited, Kenya
  • United Insurance Company Limited, Jordan
  • Saudi Indian Company for Co Operative Insurance, Riyadh

 

 

 

 

Subsidiaries :
  • The New India Assurance Company Trinidad and Tabago Limited, – Port of Spain, Trinidad and Tobago
  • The New India Assurance Company Sierra Leone Limited, Free Town, Sierra Leone
  • Pertige Assurance Plc., Nigeria

 

 

Entities over which control exist :

  • The New India Assurance Company (Employees) Pension Fund
  • The New India Assurance Company Limited Employee Gratuity Fund
  • The New India Assurance Company Limited Staff Provident Fund

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

300000000

Equity Shares

Rs.10/- each

Rs.3000.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

200000000

Equity Shares

Rs.10/- each

Rs.2000.000 millions

 

 

 

 

 

Note: Of the above 19,61,49,366 shares are issued as fully paid up bonus shares by capitalisation of General Reserves.

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

2000.000

2000.000

2000.000

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

72302.068

71221.519

67728.035

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

74302.068

73221.519

69728.035

LOAN FUNDS

 

 

 

1] Secured Loans

0.000

0.000

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

0.000

0.000

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

Fair Value Change Account

156417.365

74172.943

139592.747

 

 

 

 

TOTAL

230719.433

147394.462

209320.782

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1621.507

1581.706

1152.431

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

262032.190

177675.725

246328.697

DEFERREX TAX ASSETS

945.789

233.054

101.563

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
0.000

0.000

0.000

 

Sundry Debtors
0.000

0.000

0.000

 

Cash & Bank Balances
43651.882

33208.377

28579.276

 

Loans, Advances and Other Assets

60077.687

56608.787

43279.430

Total Current Assets
103729.569

89817.164

71858.706

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

5901.924

3868.130

6204.714

 

Other Current Liabilities
88903.825

82348.953

71416.129

 

Provisions
42803.873

35696.104

32499.772

Total Current Liabilities
137609.622

121913.187

110120.615

Net Current Assets
(33880.053)

(32096.023)

(38261.909)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

230719.433

147394.462

209320.782

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

 

 

 

 

 

1. Operating profit/loss (-)

 

 

 

 

a. Fire insurance

(3057.217)

595.368

2833.635

 

b. Marine insurance

118.861

(900.917)

76.589

 

c. Miscellaneous insurance

(2097.445)

(4723.237)

2183.528

 

 

 

 

 

 

2. Income from investments

 

 

 

 

a. Interest dividend and rent (gross) - shareholders

5289.263

5426.859

4986.562

 

b. Profit on sale of investment - shareholders

3950.791

2027.342

4925.637

 

Less: Loss on sale of investment - shareholders

0.000

0.000

0.000

 

3. Other income misc. receipts - credit balances written back

159.244

497.838

210.201

 

Total (A)=1+2+3

4363.497

2923.253

15216.152

 

 

 

 

 

 

4. Provisions(other than taxation)

 

 

 

 

a. Others - amortisation, provision for thinly traded

shares - shareholders

45.517

47.638

49.255

 

b. For doubtful debts - investments(shareholders)

(37.245)

(74.422)

(42.582)

 

c. For doubtful debts - operations

775.134

0.000

0.000

 

d. For dimunition in value of investments (shareholders)

(3.371)

(17.505)

(2.989)

 

 

 

 

 

 

5. Other expenses (other than those related to insurance business)

 

 

 

 

a. Others - interest on income/service tax

3.380

0.048

0.072

 

b. (Profit)/loss on sale of assets

(13.658)

(4.970)

(2.674)

 

c. Penalty for breach of tariff

1.000

0.200

0.500

 

Total (B)=(4+5)

770.757

(49.011)

1.582

 

 

 

 

 

 

Profit before tax (A-B)

3592.740

2972.264

15214.570

 

 

 

 

 

 

Provision for taxation - current tax

537.954

690.665

917.923

 

fringe benefit tax

0.000

405.000

155.000

 

deferred tax

(712.735)

(131.491)

304.037

 

earlier years tax

0.000

106.536

(178.454)

 

wealth tax

5.800

5.100

4.783

 

MAT Credit entitlement

(285.000)

(345.000)

0.000

 

 

 

 

 

 

Profit after tax

4046.721

2241.454

14011.281

 

 

 

 

 

 

Appropriations

 

 

 

 

a. Proposed final dividend

850.000

450.000

2830.000

 

b. Dividend distribution tax

144.458

76.478

480.959

 

c. Contingency Reserves for Unexpired Risks

0.000

449.500

0.000

 

d. Transfer to general reserves

3052.263

1265.476

10700.322

 

 

 

 

 

 

Profit/loss (-) carried forward to the balance sheet

0.000

0.000

0.000

 

 

 

 

 

 

Earnings Per Share (Rs.)

20.23

11.21

70.06

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

Return on Total Assets

(PBT/Total Assets}

(%)
2.58

2.41

13.67

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.05

0.04

0.22

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.85

1.66

1.58

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.75

0.74

0.65

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Details of Sundry Creditors:

 

Particulars

 

31.03.2010

(Rs. in millions)

31.03.2009

(Rs. in millions)

31.03.2008

(Rs. in millions)

Sundry creditors

 

 

 

- Other than service tax payable

5803.549

3865.395

6161.653

- Service tax payable

98.375

2.735

43.061

 

5901.924

3868.130

6204.714

 

PERFORMANCE:

 

Gross direct premium (GDP) in India has increased from Rs.55088.300 millions in 2008-09 to Rs.60425.100 millions in 09-10 recording a good growth of 9.69% as against 4.39% growth registered during 2008-09.

 

The growth has more than doubled and is observed in all geographical as well as business class segments (except for a minor fall in aviation), thus indicating over all recovery in the company’s performance.

 

Health continues to be the major growth driver followed by motor. However, aviation segment recorded a minor fall in business during the year.

 

Foreign (Direct) operations also bettered their growth rate from 8.28% to 11.58% despite the slow recovery of the world economy and despite fall in marine premium. Direct foreign business increased from Rs.9469.500 millions to Rs.10566.300 millions, a growth of Rs.1096.800 millions.

 

During 2009-10 company continued to be the market leader in India. With global premium having crossed Rs.70991.400 millions the company has crossed yet another milestone during 2009-10.

 

OVERVIEW OF COMPANY’S OPERATIONS

Indian

Gross direct premium in India has increased from Rs.55088.300 millions in 2008-09 to Rs.60425.100 millions in 2009-10 recording an impressive growth of 9.69% as against 4.39% registered during 2008-09. The growth has more than doubled and is observed in all geographical segments as well as all classes of business. Health continues to be the major driver for growth followed by Motor. Thus during 2009-10 the company has crossed yet another milestone of Rs.60000.000 millions and continued to be the market leader in India with a premium of Rs.60425.100 millions.

 

The net premium income of the company grew by Rs.4265.500 millions i.e. from Rs.42605.200 millions of 2008-09 to Rs.46870.700 millions in 2009-10 recording growth of 10.01% (PY 8.75%) in its operations. Company disbursed claims of Rs.46276.100 millions during 2009-10 against Rs.43031.500 millions in the previous year. The gross direct incurred claim ratio during the year was 83.93% against previous year’s 87.01%. The reduction in gross claims ratio is a significant development of 2009-10. The increase in claim ratio of health and motor segments has been arrested though both the segments still continue to have a claim ratio above 100%.

 

However, this reduction in gross claim ratio was neutralized by adjustments pertaining to previous year. Net incurred claim ratio marginally decreased from 98.95% in 2008-09 to 98.03% in 2009-10 on net earned premium. But for the said adjustments, the reduction would have been much higher.

 

Operating expenses have increased by Rs.2801.500 millions, from Rs.13594.300 millions in 2008-09 to Rs.16395.800 millions in 2009-10 mainly due to additional provision required for wage arrears and increased amortization and operating cost for implementation of the new software.

 

During 2009-10 the underwriting deficit has gone-up by Rs.2557.200 millions from Rs.15646.400 millions in 2008-09 to Rs.18203.600 millions in 2009-10 mainly due to increased operating expenses and adjustments of previous year.

 

The investment operations of the company contributed additional Rs.4509.500 millions to the Income. The continued good investment performance enabled the company to earn an investment income of Rs.20217.000 millions in the year 2009-10 against Rs.15707.500 millions in the year 2008-09 and contributed to the increase in the net profit of the company. The investment yield for the year 2009-10 was 16.70% as against 13.38% of the previous year.

 

The Investment portfolio has gone-up significantly from Rs.107717.100 millions to Rs.118510.300 millions. The market value of investments has also gone-up significantly to Rs.274007.200 millions in the year 2009-10 against Rs.181608.700 millions of previous year showing an increase of 50.88%.

 

The company received the business leadership award for the year 2009 from “NDTV Profit” TV channel.

 

FOREIGN OPERATIONS:

The gross premium is Rs.14277.900 millions in 2009-10 as against Rs.13768.900 millions in 2008-09 showing an accretion of 3.7%. The net premium is Rs.11580.700 millions as against Rs.11642.800 millions in 2008-09 showing a marginal fall of 0.5%. The fall is attributed to (a) closure of the operations in Saudi Arabia as an agency (b) fall in exchange rate of pound vis –a-vis rupee (c) negative accretion in UK due to the company’s decision not to underwrite business from the Caribbean and Central American territories during the current year.

 

The foreign operations showed underwriting profit of Rs.1006.300 millions in 2009-10 as against underwriting profit of Rs.780.800 millions in 2008-09. The operations showed net profit of Rs.2186.100 millions in 2009-10 as against Rs.1941.600 millions in 2008-09. The incurred claims cost is high during the year due to increase in claims in Japan, typhoon Ondoy claims in Manila and reinsurance recoveries accounted in Muscat and Dubai in 2008-09.

 

The foreign exchange earning during the year 2009-10 amounted to Rs.242.300 millions towards dividend received from the associate and subsidiary companies (Rs.83.600 millions) and remittance received from foreign offices out of profits (Rs.158.700 millions).

 

PLAN for 2010-11:

Domestic

“New India” has achieved another milestone by surpassing gross direct premium income (GDPI) of Rs.60000.000 millions for the year 2009-10 and proved its undisputed leadership in general insurance industry.

 

Premium completion: 2009-10 - Rs.60425.200 millions

Premium completion: 2008-09 - Rs.55088.300 millions

Growth rate: 2009-10 - Rs. 9.69%

Premium target: 2010-11 - Rs.69600.000 millions

Targeted growth rate: 2010-11 - 15.18%

 

The year ahead will be of consolidation. Premium rates have started stabilizing and an agreement has been reached at General Insurance Council level to have uniform deductibles in the industry for other than large risks.

 

“New India” being largest company has lot of in-built strength and capacity to underwrite big businesses. Main growth areas identified are:

 

·         The leadership position in large risks will be the strong point and they will consolidate it. They will focus on mega power projects, infra projects, energy risk as well as aviation and marine hull insurance.

 

·         Infrastructure projects have taken front seat in development across the country including major power projects, express highways, metro rail, networking, port development, airports of international standards, shopping malls etc. The projects are private – public funded and lot of global investment is pouring in. Naturally, insurance covers of international standards are in demand. This has given boost to MEGA project tailor made insurance policies. New India leads in tapping this new and challenging market.

 

·         Manufacturing sector also has accelerated its growth. On this front also variety of risk coverages are in demand, both in size and complexity. New India leads in this sector also by offering appropriate MEGA or IAR policies.

 

·         With estimated growth of gross direct premium of 8.5%, disposable income in the hands of individual will increase, which will give boost to growth of health and other personal line of Insurance.

 

·         Auto industry growth has surpassed all the expectations and is growing at a very fast pace this year also. This is likely to give incremental growth together with the focus on existing renewals.

 

·         Under agents performance enhancement programme (APEP), an initiative under Project New Energy, new reward scheme has been launched to encourage company’s direct agents to market personal lines of insurance and this has yielded good results.

 

·         Channel partners like brokers and bancassurance would continue to contribute to company’s growth. Steps have been taken to have more and more strategic partners.

 

Foreign

The premium target for 2010-11 is Rs.16312.000 millions (gross) against completion of Rs.14277.900 millions in 2009-10 and Rs.13764.700 millions (net) against completion of Rs.11580.700 millions in 2009-10.

 

FORM 8:

 

Corporate identity number of the company

U99999MH1919GOI000526

Name of the company

THE NEW INDIA ASSURANCE COMPANY LIMITED

Address of the registered office or of the principal place of  business in India of the company

New India Assurance Building, 87, M.G. Road, Fort, Mumbai – 400 001, Maharashtra, India

E-Mail: cmd.nia@newindia.co.in

This form is for

Creation of charge

Type of charge

Others (Assignment of reinsurances in respect of MSN 3943)

Particular of charge holder

Aether Aircraft 1 Limited, Block 1, Booters Town Hall, Booterstown Avenue, Dublin, Ireland, Dublin – Co, Ireland

E-Mail: notices@qaviation.ie

Nature of description of the instrument creating or modifying the charge

This charge created by way of deed of Assignment of reinsurances dated June 21, 2010 in respect of one Airbus A320-200 Aircraft Bearing MSN 3943 and Indian registration Mark VT-INZ by insurers' representative in favour of Aether Aircraft 1 Limited for payment, performance and discharge of secured obligation by the assignor under the aircraft lease agreement dated June 14, 2010 and/or any other operative document.

Date of instrument Creating the charge

21/06/2010

Amount secured by the charge

Rs.1961.800 millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Terms of Repayment: as security for the payment, performance and discharge in full of the secured obligations, the insurers' representative with full title guarantee, hereby assigns and agrees to assign exclusively by way of first priority security to the assignee (Aether Aircraft 1 Limited) all of its right, title, benefit and interest (present and future, actual and contingent) in and to the collateral.

 

Extent and Operation of the charge:

The security created by this document shall be held by the assignee as a continuing security, notwithstanding any settlement of account or other matter whatsoever and shall remail in full force and effect until the indefeasible, irrevocable and unconditional payment, satisfaction and discharge in full of the secured obligation.

 

FIXED ASSETS:

 

·         Intangibles

·         Land Freehold

·         Buildings

·         Furniture and Fittings

·         Information and Technology Equipments

·         Vehicles

·         Office Equipments

·         Other Assets

 

WEBSITE DETAILS:

 

PROFILE:

 

Established by Sir Dorab Tata in 1919, New India is the first fully Indian owned insurance company in India.

New India is a pioneer among the Indian Companies on various fronts, right from insuring the first domestic airlines in 1946 to satellite insurance in 1980.


With a wide range of policies New India has become one of the largest non-life insurance companies, not only in India, but also in the Afro-Asian region.

 

History

Incorporated on July 23rd, 1919 Founded by the House of Tata Founder member - Sir Dorab Tata. Nationalised in 1973 with merger of Indian companies.

 

Present Position

 

Gross Premium (in India) of Rs. 50172.000 millions in the year 2006-2007, as against Rs.47914.900 millions in the year 2005-2006. Assets Rs.274445.700 millions as on 31st March 2007. Network of Offices-26 Regional Offices, 393 Divisional Offices, 614 Branches and 34 Direct Agent Branches. Rank No. 1 in the Indian market. Largest Non-Life insurer in Afro-Asia excluding Japan. First Indian non-life company to cross Rs.50000.000 millions Gross Premium. Global Re-insurance facilities. Over-seas presence in countries like Japan, U.K, Middle East, Fiji and Australia.

 

International Presence

 

Overseas operations commenced in 1920. Operations in 24 countries in the year 2004-05. Network of 19 Branches, 12 Agencies, 2 Associate companies and 2 Subsidiary companies in the year 2004-05. Overseas Premium of Rs.8923.500 millions in the year 2004-05, which accounts for more than 80% of total overseas premium in India.

 

Pioneers

 

·         First company to set up an Aviation Insurance Department in 1946.

·         First company to handle the Hull Insurance requirements of the Indian Shipping Fleet.

·         First company to establish its own Training School.

·         First company to introduce the concept of 'Model Office Training'.

·         First company to create department in Engineering insurance.

·         Pioneer in Satellite insurance.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.03

UK Pound

1

Rs.72.97

Euro

1

Rs.62.94

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

8

--CREDIT LINES

1~10

6

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

NO

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

60

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.