An 18-20 percent sustainable growth for many years is achievable till India reaches global standards of insurance penetration and density, said G Srinivasan, CMD, New India Assurance.
The New India Assurance IPO opened today. The issue size of Rs 9,600 crore is a combination of offer for sale from the promoter government of India (Rs 7,680 crore) and a fresh issue of Rs 1,920 crore which will go into augmenting the capital base of the company. The issue will close on November 3.
G Srinivasan, CMD, New India Assurance said the general insurance industry in India is poised for a great growth since the insurance penetration in India is very low compared to global standards.
In the last five years the company has grown at a compounded annual growth rate (CAGR) of 15.2 percent, he said.
In the last few years there has been an increasing awareness about insurance and the increase in disposable income has also aided growth for the industry, said Srinivasan, adding that last year the sector grew by 32 percent.
According to him, 18-20 percent sustainable growth for many years is achievable till India reaches global standards of insurance penetration and density.
The company has many advantages of great financial strength, greater reach into the market and good customer base. So with all these features, the company will be able to maintain its position even in a competitive market going forward, said Srinivasan.