The New India Assurance (NIA), the leader with a 14.2 per cent market share in the domestic general insurance industry, has seen its profit after tax(PAT) rising by 61per cent to Rs 530 crores as compared to Rs 373 crores in the same quarter of last year.
It has mobilised a gross premium of Rs 8,309.11 crores, up 27 per cent in Q2 2019-20.The combined ratio of the company improved from 124.7per cent to 117 perent during the quarter.
The incurred claims ratio decreased from 98.51 per cent in Q2 FY19 to 92.85 per cent in Q2 FY20.
Commenting on the results, Atul Sahai, chairman cum managing director, said, "It is heartening that the company has recorded encouraging results despite a challenging operating environment. These results are despite the company incurring significant losses to its net, to the tune of Rs 335 crores during the quarter due to floods in different parts of the country. There is slow down in motor segment. Provisions towards bad debts and dimunition in value of certain equity investments further impacted profitability by Rs 40 crores in the quarter.’’
The company continues its focus on reducing the loss ratio and combined ratio and deliver better results going forward, he said .
Foreign business for the company continued to be profitable during the quarter, he said.
The solvency ratio at 2.08 per cent remains higher than the IRDAI mandated control level solvency ratio of 1.5 per cent..Net Worth including fair value change of the company was at Rs 35632 crores.The company's investment assets at market value was at Rs.67,836 crores in H1 2019-20.