United India Insurance Company announced it had absorbed around Rs 900 crore loss arising out of the floods in Uttarakhand.
“The company was able to absorb Rs 900 crore losses from the Uttarkhand floods, totaling 15 property damage claims,” said a company release. The floods caused by cloudburst along with adverse geographic conditions had claimed thousands of lives in the region in June.
The company reported a 4 per cent rise in net profit at Rs 364.54 crore for the first half of the financial year ended September 30, 2013, as against Rs 350.59 crore during the same period last year.
For the period under review, it reported a premium of Rs 4,768 crore. Investment income for the first half rose 11.46 per cent at over Rs 953 crore as against Rs 855 crore for the corresponding period in the previous year.
It was able to reduce the claims ratio from 87 per cent to 83.75 per cent during the first half, resulting in reduction of the combined ratio (a measure of the profitability of insurance operations) to 111.62 per cent from 112.62 per cent.
The market value of its total investment portfolio at the end of the first half was Rs 19,788 crore. The net worth of the company stood at Rs 5,322 crore as on September 30, 2013.
It has a solvency ratio of 2.43 against the regulatory requirement of 1.50, it said.
