New India Assurance today reported a 19 per cent jump in its net profit at Rs 311 crore in the three months to June, notwithstanding huge underwriting losses incurred by the country's largest general insurer.
"Our investment income grew 12 per cent to Rs 937 crore during the reporting period, as against Rs 627 crore in the same period a year ago, which helped us increase our Net by 19 per cent to Rs 311 crore," New India Assurance Chairman and Managing Sirector G Srinivasan said here today.
Out of a total underwriting loss of Rs 480 crore, Rs 380 crore came from fire insurance claims from a single property. Srinivasan, though, didn't name the account.
The company's global premium grew 13.28 per cent to Rs 4,020 crore as against Rs 3,548 crore, a year ago.
The company's domestic premium crossed Rs 3,398 crore in Q1 as against Rs 2,954 crore, showing a jump of 15 per cent.
Operating expenses were lower at Rs 19.87 per cent, down from 21.57 per cent. It was due to lower commission as a percentage of net premium, which came down to 7.94 per cent from 8.73 per cent.
The company's networth grew 11.5 per cent at Rs 8,941 crore. The fair value reserves stood at Rs 20,808 crore.
"We will be shortly filing a new top-up health insurance policy with insurance sector regulator Insurance Regulatory and Development Authority (IRDA), he said.
The company would recruiting 500 officials and 1,500 assistants during the current fiscal, Srinivasan said.
Moreover, the company would open a controlling office at the Free Trade Zone in Saudi Arabia during the current fiscal.
"We are looking at crossing the Rs 3,500-crore mark in terms of business during the current fiscal," he said.
