Having improved its solvency margin to 1.90 per cent in FY17, against a low of 1.26 per cent in the previous fiscal, State-owned National Insurance Company (NIC) is now working towards bringing down its combined ratio (a measure of profitability after taking into account the incurred losses and expenses) to below 120 per cent.
In an interview to BusinessLine, K Sanath Kumar, Chairman and Managing Director, NIC, spoke about the company’s IPO plans and business growth. Excerpts:
The two recent IPOs of public sector general insurance firms — The New India Assurance Company and General Insurance Corporation of India — received lukewarm response from retail investors. Has that impacted your IPO plans?
