The New India Assurance Company advanced 2.80% to Rs 119.40 after consolidated net profit gained 3.96% to Rs 302.62 crore on 3.51% rise in total income to Rs 6,663.89 crore in Q1 June 2020 over Q1 June 2019.
Consolidated profit before tax (PBT) jumped 13.15% to Rs 363.73 crore in Q1 June 2020 as against Rs 321.43 crore in Q1 June 2019. Provision for tax for the quarter surged 101.35% to Rs 61.11 crore as against Rs 30.35 crore in Q1 June 2019. The Q1 result was declared after market hours on Friday, 14 August 2020.
On a standalone basis, net profit rose 3% to Rs 286.47 crore on 3.51% increase in total income to Rs 6,616.79 crore in Q1 June 2020 over Q1 June 2019.
For the quarter ended 30 June 2020, the gross written premium was at Rs 8,368 crore which was 6.5% higher than the gross written premium for the same quarter last year. The Indian business was able to grow despite the impact of pandemic COVID-19, which started in March 2020, and the industry reporting a premium decline during the period. The incurred claims ratio has shown a considerable improvement from 92.77% in Q1 FY20 to 66.28% in Q1 FY21.
The combined ratio has improved from 116.28% in Q1 FY20 to 102.14% in Q1 FY21. Market share in India has improved to 19.11% from 17.38% during the same quarter last year and the company continues to be the market leader. Net worth including fair value change has increased from Rs 25,972 crore in March 2020 to Rs 29,451 crore in June 2020. Solvency margin remained healthy at 2.11x.
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Commenting on the Q1 result, Atul Sahai, the chairman cum managing director (MD), has stated that: "The company has reported encouraging results for the quarter despite a challenging macro environment due to COVID-19, which has impacted the economy. There has been a significant improvement in the loss ratio, which apart from the loss minimization and corrective pricing actions undertaken, was also due to the reduced incidence of motor claims. The expenses have increased as the company has made an additional provision of Rs 538 crore in anticipation of a one-time increase in the liabilities towards pension due to revision of annuity rates. Some large risk losses and Rs (150) crore CAT losses on account of Nisarga and Amphan affected the performance of the property line of business during the quarter. Investment income was on the lower side during the quarter due to reduced dividend payouts of many companies and payouts getting shifted to the second quarter. Equity markets recovering only towards the second half of the quarter also contributed to lower investment income. Foreign business continued to be profitable during the quarter."
The New India Assurance Company is the largest non-life insurance company in India headquartered at Mumbai and operates in 28 countries.
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