 "New India Assurance")
The largest general insurer, The New India Assurance, posted a net profit for the third quarter ending December 31, 2023, at Rs 715.17 crore, 4.38 per cent lower than the Rs 748.51 crore of the corresponding year-ago period as the impact of catastrophic events.
The company had posted a loss of nearly Rs 200 crore in the second quarter of FY24.
“In the third quarter, the country witnessed catastrophic events like Cyclone Michaung and floods in South India, Sikkim, and West Bengal. The net impact of these events on the company's third-quarter results was about Rs 358 crore. This is in addition to the Rs 301 crore of catastrophe claims that adversely impacted the results in the first half,” said Neerja Kapur, Chairperson & Managing Director, New India Assurance.
The Gross Premium Written (GWP) of the company rose by 15.34 per cent to Rs 10,664.88 crore from Rs 9,242.53 crore of the corresponding quarter of the last financial year.
The net premium earned rose to Rs 8,562.96 crore in the quarter under review, 15.37 per cent higher from Rs 7,422.18 crore in Q3 FY23.
The net investment income slipped by 10.63 per cent to Rs 1,684.13 crore in the reporting quarter from Rs 1,884.48 crore in the same quarter of FY23.
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The commission paid by the general insurer rose by 20.5 per cent to Rs 734.82 crore in the reporting quarter from Rs 609.80 crore in the same quarter of FY23.
The underwriting loss of the second largest general insurer expanded to Rs 1,390.40 crore from Rs 1,100.92 crore in Q3 FY23.
The combined ratio of the company, which is the measure of profitability of a general insurance company, rose to 116.56 per cent from 115.39 per cent. It was 130.77 per cent in Q2 FY24.
“The motor OD loss ratio improved while the third-party segment loss ratio was higher as premiums were largely unchanged in this segment. The health segment loss ratio is improving due to the price corrections undertaken in the retail segment and more prudent underwriting in the group segment, although it has impacted the top-line growth,” Kapur added.
The solvency ratio of the company fell to 172 per cent from 191 per cent a year ago and 170 per cent in Q2 FY24.
In the earnings statement, the company said that it has made an ad hoc provision at 7 per cent amounting to Rs 3,442.79 lakh towards wage revision during the quarter ended December 31, 2023.
