SINGAPORE (Reuters) - Germany’s Allianz expects strong sales of commercial and personal insurance policies in its Asian core markets of China and India to lift profits in the region this year, the head of the insurer’s Asian business said.

The Munich-based group recorded a 27 percent jump in Asian premium income — revenue from selling insurance cover to clients — to 6.2 billion euros ($7.6 billion) in 2005. It did not disclose net profits made in Asia but forecast 2006 profit would rise by more than the group’s target of 10 percent.

"Our target is to grow more than 27 percent, otherwise we would be standing still," Allianz’s Chief Executive for Asia, Bruce Bowers, told Reuters in an interview on Monday.

"I can say with confidence that our profits will grow by more than 10 percent in 2006. We expect strong growth."

Asia is the third-largest geographical region after Western Europe and the Americas in terms of sales for Germany’s biggest insurer, contributing 5 percent to group revenues of 100.9 billion euros.

"Our long-term vision for Asia is to become at least 10 percent of the pie…within five years. That’s through organic growth and we are always looking at acquisitions in the region."

Bowers said Allianz was monitoring the market for possible purchases but was not in talks with anyone at the moment.

Operating profits at Allianz’s life and health insurance in Asia, its main money spinner, were 17 million euros. Premium income for this sector rose 35 percent jump to 4.2 billion euros.

Its property and casualty (P&C) insurance business posted a 56 percent higher operating profit of 260 million euros, as premiums rose 14 percent to more than 2 billion euros.

Allianz said that despite softening markets for industrial insurance, its operating discipline shaved 4.2 percentage points off its Asia combined ratio, which measures claims and costs as a percentage of premiums, to 92.7 percent. A figure over 100 means it has made an underwriting loss.

Allianz sells its products, such as car insurance, accident insurance or life insurance, through insurance agents, call centres, direct marketing, brokers as well as over bank counters.

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India is open for business was the message delivered by Montek Singh Ahluwalia, deputy Chairman of the Planning Commission, at the Asia Society Conference in Mumbai on Sunday.

The Oxford-educated economist was introduced by former US ambassador to India Frank Wisner as being pivotal to India’s economic reform process.

In a short and extempore talk, Ahluwalia said the economy had done well and the Indian people perceive that there have been a lot of gains due to globalisation.

"That has translated to a political consensus that this is the right thing to do," he said referring to India as the second fastest growing country in the developed world.

In the current financial year ending March, the estimated growth rate is around 8 per cent while the average growth rate in the last three years was a little below 8 per cent. Ahluwalia said observers feel that enough structural changes had taken place and the Indian economy could now aim at a growth rate of above 8 per cent.

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MUMBAI, MARCH 20 :  Government may review some existing Foreign Direct Investment caps in specific areas in a bid to achieve its FDI target, Deputy Chairman of the Planning Commission Montek Singh Ahluwalia said here today.

"As per the National Common Minimum Programme, the country needs and can absorb three times of the FDI that curently exists. In the planning commission and elsewhere, we are trying to factor that in into a policy," Ahluwalia told reporters here.

"Many foreign investors pointed to some existing caps to be looked at and we are looking at those to see whether there is a case to liberalise it further," he said.

The Commission had already reviewed the existing restrictions on FDI last month and is currently working on streamlining it before framing that into a policy.

On raising the FDI limits in real estate sector, Montek said the commission was ‘looking into that matter in general as part of the policy review’.

"About a year ago, the policy towards FDI investment in real estate was iberalised. There are demands to liberalise it further and this is something that we are discussing as part of a general review (of the policy)," he said.

He said the government’s policy towards development of Special Economic Zone is getting "positive response" from investors. "You can have a substantial amount of commercial and real estate development.. That will attract a lot of investment," he added.

Source: http://www.financialexpress.com/

India

Finance In India

India’s News

International Finance Corporation plans to invest $500
million in 2006 in the Indian private sector and is currently talking to second
tier banks about investments.

IFC�s incremental investment in 2006 is almost half the
institution�s current outstanding India portfolio of $ 1.2 billion. In the current portfolio, about $1 billion was in
the form of loans, said Anil Sinha, general manager, SEDF (a facility managed
by IFC), today on the sidelines of a workshop organised by the Competition
Commission of India.

Sinha said IFC was open to investing in the second tier
banks with whom it was in talks through either equity or loans. IFC was willing
to offer banks a choice between dollar denominated loans and rupee loans. It
was also offering technical assistance to banks, added Sinha.

The institution had earlier invested in financial sector
companies such as HDFC Bank, IL & FS and IDFC.

IFC�s investment strategy in India will focus on manufacturing sector, infrastructure, and financial
intermediaries. It is also looking at growing its advisory services in India.

Sinha said an area that interested IFC was designing
solutions to improve investment climate in different states.

IFC also concentrates on providing assistance to small and
medium enterprises in North East India. The South Asia Enterprise Development
Facility (SEDF) is a multi-donor facility managed by IFC, which concentrates on
the needs of small and medium enterprises in Bangladesh, Bhutan, Nepal and North East India.

India is IFC�s third largest country of operations. Recently, IFC announced an
investment of $ 15.2 million in two subsidiaries of India Hydropower
Development Company through a debt financing deal. Last year, IFC invested in
equity of Apollo Hospitals, a company listed on the stock exchanges.

Source: http://www.business-standard.com/

Investment In India

Indian Investment

Indian Investment News

The Comptroller and Auditor General (CAG) of India has asked the Rajasthan government to either improve the performance of three
government companies or consider their "closure".

The CAG, in its audit report for the year ended March 31, 2005, tabled in the
assembly recently, said the three government companies � the Rajasthan State
Handloom Development Corporation Ltd, Rajasthan State Agro Industries
Corporation Ltd, and Rajasthan Electronics Ltd � had been incurring losses for
the last five years as per their latest finalised accounts, leading to negative
net worth.

"The government should either improve their performance
or consider their closure," the CAG said.

On March 31, 2005,
there were 21 government companies, 16 working and 5 non-working, and three
working statutory corporations, compared with 23 government companies and three
statutory corporations on March 31,
2004.

The report said the total investment in working public
sector undertakings (PSUs) decreased from Rs 14,064.83 crore onMarch 31, 2004 to Rs 13,805.85 crore
on March 31, 2005. The
total investment in non-working PSUs also decreased from Rs 12.32 crore to Rs
12.10 crore during the same period.

The report said 12 working government companies and two
statutory corporations had finalised their accounts for the year 2004-05.

The accounts of four working companies and one corporation
were in arrears for one year. While 10 working PUSs, eight government companies
and two statutory corporations earned an aggregate profit of Rs 189.50 crore,
four working government companies and one statutory corporation declared a
dividend of Rs 21.34 crore and Rs 78.53 lakh respectively.

Against this, four PSUs, three government companies and one
statutory corporation incurred an aggregate loss of Rs 41.49 crore. Of these
loss incurring working government companies, two companies had accumulated
losses of Rs 40.59 crore, which exceeded their paid up capital of Rs 7.22
crore.

One corporation, which earned a profit during 2004-05, had
accumulated a loss of Rs 68.83 crore, against its paid up capital of Rs 81.52
crore.

The CAG in its audit report said the turnover of two working
government companies, Rajasthan State Jal Vikas Nigam Limited and Rajasthan
State Hotels Corporation Limited, which has been in existence for the last 21
and 40 years respectively, had been less than Rs five crore in each of the
preceding five years as per their latest accounts.

Source : http://www.business-standard.com/

India News

Indian Investment News

Investment News India

As the economic engines of the world�s top two emerging markets continue to roar, The Deal�s Eyes on China & India Conference will focus on the increase of in-bound and outbound investments in these regions and the passage to profits.

Benefit from attending this half-day event:

• Learn how the WTO�s negotiations in Hong Kongwill further open Chinato foreign investors

• Find out what it takes to maximize the value of investments in India, coping with the country�s developing infrastructure

• Explore the trends and strategies behind China�s next investment opportunities, including insurance, telecom and banking

• Discover how investors are drawing upon India�s talented labor force of I&D and IT professionals

• Gain insight into raising funds in Chinaand the outlook for stock market reform

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