United India Insurance Company is in the process of short listing consultants for its business process re-engineering (BPR).
“We have got response to the request for proposal issued a month ago. We are processing the submissions,” said Milind Kharat, chairman and managing director of the company.
The first BPR activity began in 2008 and ended in 2010.
In the first phase, Boston Consulting Group was the company consultant and helped set up large corporate branches, bancassurance offices and tap automobile dealers for bulk business etc.
In 2013, United India began the process to hire consultant for the second round of restructuring but dropped the move after sometime.
Earlier, announcing half-yearly results of the company to the media, Kharat said it was targeting a premium of Rs.11,800 crore this fiscal, up from Rs 10,692 crore posted in the previous fiscal.
United India posted a premium income of Rs 5,914 crore and an after-tax profit of Rs 356.21 crore, as against Rs.5,291 crore premium and a net profit of Rs 376 crore during corresponding period of previous year, said V.E. Kaimal, general manager and financial advisor.
Kharat said the company provided Rs 260 crore towards revision in wages.
“Wage talks with the employee unions are over. We have recommended the proposals to the central government for a final decision. Post-revision, salary hike will be around 15 percent,” Kharat said.
According to A.V. Girija Kumar, director and general manager, the company’s investment income during the first half of the year stood at Rs 1,073.84 crore as against Rs 1,067.40 crore during the previous year’s corresponding period.
He said the company had invested around Rs 1,000 crore this year against a target of around Rs 1,200 crore.
“Our investment income for the whole year is expected to be in the range of around Rs 2,250 crore,” Kumar said.
He said investment income was coming down due to a downward revision in interest rates.
On the distribution side, Kharat said the company would increase its agents to 50,000 from the current 42,351.
The company was also in the process of recruiting 1,050 employees this year, Kharat said.