New India Assurance reported a 27% YoY growth in its net profit for the first quarter that ended on June 30 of the current financial year. The company’s profit after tax (PAT) rose to Rs.635 crore during the period under review, in comparison to a PAT of Rs.499.41 crore in the previous financial period for the corresponding period.
New India Assurance’s gross direct premium also rose by 12.6% YoY to touch Rs.6,053 crore. The global gross written premium increased by 10% YoY to touch Rs.6,961 crore. The general insurance provider’s combined ratio for Q1 of FY19 was 111.02%, compared to 111.03% in the previous fiscal. The company’s Return on Equity stood at 16.1% and the solvency margin was 2.66%.
Mr. G. Srinivas, the Chairman and Managing Director of New India Assurance, said that the company is looking to further reduce its combined ratio and improve the operating performance in the future.
Among the company’s various business segments, the insurer’s health insurance underwriting loss increased to Rs.479.29 crore in Q1 of the current fiscal year from Rs.308.65 crore in the previous financial year. The motor insurance segment witnessed an underwriting loss of Rs.110.68 crore, in comparison to Rs.237.24 crore in the previous financial year.
The insurer’s fire segment witnessed an underwriting loss of Rs.107.80 crore in Q1FY19, in comparison to a loss of Rs.7.89 crore in the previous year. New India Assurance’s crop insurance portfolio, however, saw an underwriting profit to the tune of Rs.43.98 crore for the period under review, in comparison to an underwriting loss of Rs.7.89 crore in the last financial year.
New India Assurance is a leading public-sector general insurance company in India with a market share of 16.8%. The insurer offers a number of non-life insurance products including motor insurance, travel insurance, health insurance, etc.
Sources: Money Control, The Hindu Business Line, Financial Express