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Informist, Thursday, Aug 8, 2024

--New India Assurance Apr-Jun total income 98.2 bln rupees vs 92.7 bln 

--New India Assurance Apr-Jun PAT 2.17 bln rupees vs 2.60 bln 

MUMBAI – The New India Assurance Co Ltd's net profit fell 16.6% on year to 2.17 bln rupees in the June quarter due to a slow growth in gross premium written. The company announced its earnings after market hours. Shares of the company today ended 1.2% lower at 260.30 rupees on the National Stock Exchange. 

Gross premium written rose a mere 3.74% on year to 117.88 bln rupees. "The gross written premium growth was muted at 3.74% as the company continued to rationalise its portfolio mix, in favour of lines where profitability is better," said Chairman and Managing Director Girija Subramanian in the investor presentation.  

Consequently, the net premium written of the company rose by 4.3% on year to 95.77 bln rupees. The company saw a slight fall in income from investments, which also weighed on the bottomline. Net income from investments fell 3% on year to 13.14 bln rupees. On a sequential basis the fall in investment income was 30.5%. 

The premium from the fire segment was hit the most, falling 11.7% on year to 6.2 bln rupees. Premium from motor third party segment saw a muted growth which also weighed on the net profit. Motor third party premium grew just 1.4% on year to 14.4 bln rupees. "The incurred claim ratio was impacted by elevated loss ratio in the Motor segment, especially in the Motor third party segment where no premium increase has been notified yet," Subramanian said.

Health and personal continued to occupy the lion's hsare of the product mix, holding 50%. They were followed by fire at 16%, motor third party at 12% and others at 10%. 

The underwriting loss for the June quarter widened to 15.81 bln rupees from 14.41 bln rupees in the year-ago period. Within expenses, net commissions rose by 18.3% on year to 8.13 bln rupees. Claims paid rose by a hefty 11.4% to 77.04 bln rupees from 69.19 bln rupees a year ago. 

Total expenses of the company rose by 7.7% on year to 100.84 bln rupees.

The general reserves of the company rose to 168.19 bln rupees in June from 16.05 bln rupeees in the year-ago period. Solvency ratio of the insurer fell to 1.83 times as on Jun 30 from 1.85 times in the year ago period.

Combined ratio of the company was at 116.05 at the end of June, compared with 115.16 year ago.  End

Reported by Kabir Sharma

Edited by Akul Nishant Akhoury

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