Earnings Review
High provisions dent New India Assurance's Jan-Mar net profit
This story was originally published at 12:12 IST on 20 May 2025
Register to read our real-time news.Informist, Tuesday, May 20, 2025
Please click here to read all liners published on this story
--New India Assurance Jan-Mar net profit INR 3.47 bln vs INR 3.54 bln yr ago
--New India Assurance Jan-Mar total income INR 109.66 bln vs INR 108.49 bln yr ago
--New India Assurance Q4 net premium written INR 97.51 bln vs INR 87.69 bln
--New India Assurance FY25 net profit INR 9.88 bln vs INR 11.29 bln yr ago
--New India Assurance FY25 total income INR 410.66 bln vs INR 405.92 bln yr ago
--New India Assurance FY25 net premium written INR 363.15 bln vs INR 344.07 bln
--New India Assurance to pay INR 1.80 per share final dividend for FY25
By Kabir Sharma
MUMBAI – A surge in provisions and lower investment income led The New India Assurance Co. Ltd. to report a 2?ll in its net profit for the quarter ended March. The slight moderation in bottom line came despite operating expenses being halved and employee remuneration brought down by nearly 70%. The company declared its Jan-Mar earnings late Monday.
The net profit of the insurer fell to INR 3.47 billion in the March quarter, from INR 3.54 billion a year ago. Provisions for bad debt surged to INR 7.10 billion in the reporting quarter compared to a reversal of INR 15.7 million year ago. On Monday, shares of the company ended 1.3% higher at INR 181.31 on the National Stock Exchange. The company also declared a final dividend of INR 1.80 per share for 2024-25 (Apr-Mar).
Operating expenses of the company fell over 57% on year to INR 5.71 billion. Employees' remuneration and welfare expenses fell nearly 76% on year to INR 2.57 billion in the reporting quarter.
The company's gross written premium, its main source of income, rose 8.1% on year to INR 114.33 billion in the March quarter. "Despite the rise in GWP (gross written premium), the company has managed to reduce its underwriting losses by 11% driven by lower claim ratio and significant reduction in operating costs," Girija Subramanian, chairman and managing director of the company, said in its investor presentation.
Underwriting losses of the company narrowed down to INR 11.43 billion for Jan-Mar from INR 16.83 billion year ago. Net income from investments fell 12.3% on year to INR 16.59 billion in the latest quarter. The combined ratio has improved to 116.78% in FY25 from 119.88% in FY24. "This improvement could have been even greater if not for the elevated loss ratio in the motor third party segment, where the much-needed premium revision has not happened yet," Subramanian said.
Other expenses of the company rose to INR 7.72 billion in Jan-Mar from the corresponding quarter of the previous year and were at INR 8.75 billion for FY25. Other expenses include a one-time provision towards legacy non-moving reinsurance balances of INR 8.02 billion, the investor presentation said.
The solvency ratio of the insurer improved to 1.91% as of Mar. 31 from 1.81% year ago. The total assets under management rose to INR 980.45 billion from INR 959.10 billion year ago.
Total income of the company rose to INR 109.66 billion in Jan-Mar from INR 108.49 billion a year ago. Net premium written for the quarter rose to INR 97.51 billion from INR 87.69 billion year ago.
For FY25, the company reported a net profit of INR 9.88 billion, down 12.5% from year ago. Total income for the full year was INR 410.66 billion, higher than INR 405.92 billion in the previous year. Net premium written rose to INR 363.15 billion in FY25 from INR 344.07 billion a year ago. End
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
