New India Assurance to open more micro offices post-IPO

IPO

New India Assurance, which is coming out with an IPO for diluting 15 per cent of government stake, would open more one-man micro offices to increase its business in future, a top company official said today.

"At present, we have 1,339 such micro-offices across the country, besides 1,000-odd full-fledged offices. We want to open 200 micro-offices every year to boost business," C Narambunathan, GM-cum-financial advisor, told reporters here today.

New India, he said, is the market leader in non-life insurance business in the country in segments such as motor, health and fire.

During the last financial year, the company clocked an overall business of Rs 19,000 crore.

On crop insurance, Narambunathan said the company would go slow due to its volatile nature, but would rather do it through re-insurance.

Crop insurance contributed six per cent to the company's total business.

New India would also take corrective steps to bring down its retail health insurance premium tariff rates which are at present skewed against the elderly, he said.

Of the 15 per cent divestment, three per cent would be fresh issue of shares, and 12 per cent offer for sale by the government.

"In the next three years, another 10 per cent will be divested taking the total to 25 per cent," Narambunathan said.

Proceeds of the fresh share issue would be used towards growing the business, he said.

It has 28 offices across the globe at present and the issue opens on November 1, 2017.