HDFC Ergo sees capital infusion of Rs 80 crore

“We may need a capital infusion of around Rs 25-30 crore in the current fiscal as around Rs 75 crore has already been infused into the insurance firm. Similarly, we will require around Rs 50 crore in the next fiscal,” HDFC Ergo General Insurance Chief Executive Officer Ritesh Kumar told PTI here.

Promoters of the general insurance firm, namely premier mortgage lender HDFC and Germany’s Ergo International, have already pumped in around Rs 75 crore in the first half of this financial year. The firm has an equity capital base of Rs 500 crore as of now, he said.

Kumar, however, pointed out that the company would not require huge capital from the promoters in future as it has turned profitable on entity level from the last quarter. “We don’t need large support from the promoters as the growth can be funded from internal accruals,” he added.

HDFC Ergo posted net profit at Rs 14 crore in the April-June quarter and is expecting to retain profit for the whole fiscal. “We hope that profitability will be sustained in the rest half of the year,” Kumar said. On the premium front, the general insurance firm has set a target of 35-40 per cent premium growth for this fiscal.