“After a challenging FY22, Q1FY23 saw a turnaround with the company’s results improving considerably compared to the previous quarter. The gross written premium growth at 6.5 per cent was low as the company took several proactive steps to strengthen the pricing and weed out loss-making accounts to improve profitability. The full impact of these initiatives should be visible in the ensuing quarters. While the impact of COVID claims has reduced, it hasn’t receded. The solvency ratio improved to 1.72x compared to 1.66x in the previous quarter. We look forward to better results going forward” Madhulika Bhaskar, general manager and additional charge,CMD, NIA
Mumbai:
With improved Combined Ratio(CR) and investment income, New India Assurance, the country’s largest non-life multinational, has seen its net profit rising by 33.71 per cent year-on-year(Y-O-Y) to Rs 118 crore in Q1FY 23.
The listed insurer’s CR has improved to 112.99 per cent in the reporting quarter from 113.96 per cent in Q1FY 22 and its net investment income has increased to Rs 965 crore in Q1 FY 23 from Rs 908 crore in the year-ago period.
The general insurer’s gross written premium has gone up by 6.4 per cent y-o-y to Rs 10,349 crore in Q1FY 2023.
The company’s underwriting loss has marginally risen to Rs 1086 crore in Q1FY 23 from Rs1075 crore in the year-ago period.
“ After a challenging FY22, Q1FY23 saw a turnaround with the company’s results improving considerably compared to the previous quarter. The gross written premium growth at 6.5 per cent was low as the company took several proactive steps to strengthen the pricing and weed out loss-making accounts to improve profitability. The full impact of these initiatives should be visible in the ensuing quarters. The high base effect of 0 IFY22 also impacted the YoY growth numbers as the company had received some bulk government business in the same quarter last year,’’ explained Madhulika Bhaskar, general manager and additional charge,CMD, NIA said
The company’s solvency ratio which was 1.66 in Q4FY 22 has improved to 1.72 in Q1FY2023.It was 2 in Q1FY2021.
Further commenting on the results, Bhaskar said,” The incurred claim ratio decreased to 94.05 per cent compared to 99.46 per cent in FY22. While the impact of COVID claims has reduced, it hasn’t receded. The company paid CO VID claims worth Rs 372 crore in 01FY23. The combined ratio improved considerably to 112.99% in 01FY23 compared to 120.66% in FY22. The solvency ratio improved to 1.72x compared to 1.66x in the previous quarter. We look forward to better results going forward”
Foreign operations of the company also returned to profitability in the reporting quarter, informed Bhaskar.