Universal Sompo General Insurance
PRESS RELEASE
11th May 2018, Mumbai:The Board of Directors of Universal Sompo General Insurance Company Limited met on 10.05.2018 and approved the financial results for the year ended 31st March, 2018. Commencing on the same, Sh. O. N. Singh, Chairman, Universal Sompo said "The Year 2017-18" can be termed as very eventful Year as Company has been able to infuse Additional Capital of Rs.100 crs at Fair Market Value of Rs.55/- as also the profit before tax Rs.429.57 crores has pushed up the strong Financials for the Company.
The Company has made a net profit of Rs.296.55 crores after tax as against Rs.48.98 crores for last F.Y. 2016-17. This has enabled the Company to strengthen its Net Wothof Rs. 750.10crs. as against Rs.353.55crs. of previous F.Y. 2016-17 wiping out the carried forward losses of Rs.82 crs. in previous year. The Company has shown an Underwriting Profit of Rs.288.57 crs. in F.Y. 2017-18 as against loss of Rs.71.25 crs. in last F.Y. 2016-17 and with Solvency Margin of 2.30 has placed itself on a very strong footing for the future growth.
The Gross Written Premium of Rs.2313.43 crs was mainly backed by Crop Insurance, Motor and Individual Health Insurance,the Lines of Business which have shown substantial growth.The Company raises its Market Share to 1.53%. Chairman further added that realising the challenges faced in lines of Motor Business, arising out of tough competition in providing discount to the Customers has impacted the profitability and a need was felt to bring in new Customer friendly products. To meet this requirement, the Company has taken various initiatives like Launch of AAROGYAM (Health Care Services), Ramping up Online Business and pushing up its Retail Growth through its Bank Partners.
The Company has seen this year some events taking place among Shareholders as well. The Right Issue of Rs.100 crores was subscribed only by Sompo Japan NippokoaInsurance Inc and Dabur Investment Corporation which changed their Shareholding Pattern as under:
| SHAREHOLDING PATTERN POST RIGHT ISSUE AS ON 31.03.2018 | |||
| SR. NO. | NAME OF SHAREHOLDER | NUMBER OF SHARES HELD | POST ISSUE SHAREHOLDING % |
| 1 | Allahabad Bank | 10,50,00,000.00 | 28.52 |
| 2 | Indian Overseas Bank | 6,65,00,000.00 | 18.06 |
| 3 | Karnataka Bank Limited | 5,25,00,000.00 | 14.26 |
| 4 | Dabur Investment Corporation (Partnership Firm) | 3,95,45,455.00 | 10.74 |
| 5 | Sompo Japan Nipponkoa Insurance Inc | 10,46,36,365.00 | 28.42 |
| Total | 36,81,81,820.00 | 100.00 | |
The issue was completed by 15th March, 2018.
Further Chairman informed that Karnataka Bank has entered into a Share Purchase Agreement for Sale of 3,04,09,090 shares at a price of Rs.55/- per share with Sompo Japan Nippokoa Insurance Inc and Dabur Investment Corporation, whereby the Shareholding pattern of Partners will further change as under:
| SHAREHOLDING PATTERN POST TRANSFER OF SHARES FROM KARNATAKA BANK | ||||
| SR. NO. | NAME OF SHAREHOLDER | NUMBER OF SHARES HELD | POST ISSUE SHAREHOLDING % | |
| 1 | Allahabad Bank | 10,50,00,000.00 | 28.52 | |
| 2 | Indian Overseas Bank | 6,65,00,000.00 | 18.06 | |
| 3 | Karnataka Bank Limited | 2,20,90,910.00 | 6.00 | |
| 4 | Dabur Investment Corporation (Partnership Firm) | 4,71,47,727.00 | 12.81 | |
| 5 | Sompo Japan Nipponkoa Insurance Inc | 12,74,43,183.00 | 34.61 | |
| Total | 36,81,81,820.00 | 100.00 | ||
However this will happen only after IRDA approval which is expected shortly.
Media Contacts:
Corporate Communication
Universal Sompo General Insurance
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