CHENNAI: United India Insurance Company Ltd is planning to increase its focus on retail segment by concentrating on bancassurance, efficient customer services and customisation of products, according to M K Garg, chairman and managing director.

Announcing the company results here on Tuesday, Garg said, “we will concentrate on bancassurance segment and will tap the rural market to strengthen our balance sheet in the coming years.”

The company has earned a net premium of Rs 2,162.65 crore for the year 2004-05 against Rs 2,136.63 crore last year. “This has been achieved despite pruning certain segments of business and after providing for the proposed wage revision and increased contribution to the pension fund,” he said.

However, the general insurance major has reported a lower net profit of Rs 318.30 crore for the year 2004-05 against Rs 393.39 crore last year. The company has recommended a dividend of 62 percent for the year. “We have adopted prudent underwriting norms, especially in the motor insurance segment,” Garg said.

“We are planning to enhance our motor portfolio in the current fiscal. We have entered into agreement with manufacturers and dealers of established automotive brands,” Garg said.

The company has used the momentum of the capital market to its advantage through careful and value-oriented investing and booking profit of Rs 463.10 crore, he added.

The public sector insurance company’s income from investment was Rs 582.61 crore against RS 569.34 crore last year.

During the year the company has settled 7,77,398 claims involving an outgo of Rs 2,268.41 crore, an average of 2,982 claims settled per day.