Private-sector insurer Reliance General Insurance hopes to register profit in the current financial year on the back of a diversified portfolio and reduced dependence on motor segment, a top company official has said.
"Entity wise, we will be profitable in the current financial year...During the first six months, we have made Rs 30 crore of profit," Reliance General Insurance CEO Rakesh Jain said.
The company had reported a loss of around Rs 90 crore last fiscal.
According to the insurer, investment income would support the overall profit this fiscal.
Attributing the likely profit to its diversification strategy, Jain said the company has reduced its dependence on motor insurance segment and increased the focus on other segments.
"We are focusing on multiple revenue streams and diversification, which is why we are able to escape from the de-growth seen in the marketplace...We are quite a big player in motor insurance segment.. but at an organisational level, we want to have a balanced portfolio...," Jain added.
He said the company increased the share of non-motor business to 43 per cent from 33 per cent two years ago.
"Last year, we worked on health segment, which now represents around 22 per cent of our total business. This year, we are focusing on emerging segments like weather insurance," the chief executive said.
On growth figures, Jain said the company is likely to grow above the industry average in the current financial year.
"We have grown 22 per cent during the first eight months.
So, we hope that we will grow above the industry average during the current fiscal," he said.
Responding to a query on roping in a partner for its general insurance venture, Jain said, "That is the stated intent, which is emanating from the RBI requirement applicable for Reliance Capital... we are open for a good partner".