With higher claims and other expenses, state owned New India Assurance (NIA), the largest non-life players in the country, at Rs.963.82 crores has witnessed a 22 per cent fall in its net profit in H1 2018-19 as against Rs.1247.68 crores in H1 2017-18.
The company had its board meeting to finalise its results on Monday.
Commenting on the performance,Hemant G Rokade, chairman of the Board Meeting said,“ The performance was adversely impacted due to catastrophic losses in India and abroad. The loss ratio under major line of business i.e. health has shown improvement in H1F19 The company continues to be the market leader.’’
The company, that has got operations in 28 countries, has mobilised a global gross written premium of Rs 13,466 crores , up 5 per cent, in the reporting period as against Rs 12823 crores in the H1 2071-18.
The company’s domestic premium has increased by 8 per cent to Rs 11, 761 crore in H1 2018-19 from Rs 10, 802 crore mopped in the year ago period.
Due to Kerala floods and other corporate claims, NIA’s underwriting losses have gone up by 50 per cent to Rs 1,942 crore in H1 2018-19 from Rs1,282 crore in H1 2017-18.
The NIA’s combined ratio, ,a key number to assess the profitability of a re/insurer, during the reporting period was at 117.78 per cent while the adjusted combined ratio was at 99.47 per cent.
The company’s combined ratio had improved to 111.2 per cent in 2017-18 compared to 118.7 per cent in FY 2016-17.A combined ratio below 100 percent indicates the insurer is posting underwriting profits.
The company ‘s total income has gone up by nine per cent to Rs 12,344 crore in H1 2018-19– including a net investment income of Rs 1,176 crore(Rs1,0,80 crore)- from Rs 1129 crore in H1 2017-18.
The general insurer has a market share of 14.4 per cent during H1 2018-19 and its Solvency Margin continued to be healthy at 2.52.
The Indian general insurance Industry is poised for a great expansion in the coming years and New India as the market leader would leverage this for continued better performance,'' said Rokde.
The company's share price recieived a positive response from investors on Monday and had gone up by .80 per cent to close at Rs 230.30 after opening at Rs 227.65 at NSE during the trading hours.