Media Centre - Press Coverage
Magma HDI to focus on motor insurance
Financial Chronicle, 13 November 2009, New Delhi
Newly formed insurance joint venture Magma HDI General Insurance has decided to
leverage the domain expertise of its promoter Magma Fincorp in the
motor financing business to focus on the motor insurance space during
the initial days of operations. Magma has a customer base of over
2,00,000. Magma HDI General Insurance is a JV between Magma Fincorp
and its promoters Celica Developers and Germany's HDI Gerling. While
domestic partners hold 37% each, HDI Gerling holds 26%. The company
will have an initial paid up capital of Rs 110 crore. "We will
avoid loss-making lines of business. Unhealthy pricing has led to
huge underwriting losses for many general insurance companies. Motor
insurance will be our focus area. We will target our existing client
base to sell insurance products. We are expecting more than 50% of
business from motor insurance," Magma Fincorp Vice Chairman and
Managing Director Sanjay Chamria said. Apart from motor insurance,
the company will also launch products for retail health insurance,
home insurance and insurance solutions for its mall and medium enterprise
clients.
Magma Fincorp to raise Rs 2,000 cr in 6 months
Business Standard, 3 November 2009, Kolkata
Magma Fincorp is planning to raise Rs 2000 crore through debt instruments including bank loans, debentures, bonds and securitized papers in the next six months", said Sanjay Chamria, Vice Chairman and Managing Director, Magma Fincorp. The company today posted 39% rise in net profit for the quarter ended September, 2009 at Rs 15.75 crore, against Rs. 11.28 crore in the same period last financial year on a consolidated basis. The profit was driven by increased disbursals in high - yielding segments like tractor, small and medium enterprises and used commercial vehicles, said Chamria. The contribution of the three segments increased from 8% last year to about 13% in the quarter under consideration. "Even in the four core segments our Net Interest Margin was about 4%, and so we have been able to reduce the cost of funds. We want to increase the contribution from 3 high yielding segments to 15% by the end of the financial year", said Chamria.
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