Neerja Kapur, CMD, NIA

“The company continues to focus on improving the business mix by shedding businesses where premiums are inadequate and may impact its bottom line. The company maintained its market leadership in India with a market share of 16.2 per cent,’’ said Neerja Kapur, CMD, NIA after company’s board finalised its first quarter results on Friday

Mumbai:

With larger investment income, state owned New India Assurance (NIA) has more than doubled its net profit to Rs 260 crore in the first quarter of FY 24 as compared to Rs 119 crore in the year-ago period.

The non-life insurer had recorded a net profit of Rs 118 crore in Q1FY23.

“The company continues to focus on improving the business mix by shedding businesses where premiums are inadequate and may impact its bottom line. The company maintained its market leadership in India with a market share of 16.2 per cent,’’ said Neerja Kapur, CMD, NIA, after company’s board finalised its first quarter results on Friday.

The company’s investment income, with investment assets of Rs 90,152 crore, has surged 42 per cent y-o-y to Rs 1906 crore during the reporting quarter.

The insurer’s underwriting losses have risen by almost 34 per cent year on year (Y-O-Y) to Rs 1,466 crore along with a higher combined ratio of 115.35 per cent during the June quarter.

NIA’s combined ratio was at 112.73 per cent during Q1 FY23.

However, sequentially, the company’s combined ratio has improved as it was  117.2 per cent in the fourth quarter of FY 23.

“The underwriting results for the quarter were adversely impacted due to higher claim ratio in the foreign operations. The loss ratios in the domestic health and motor lines of business also remain elevated, but we are confident that the corrective steps being taken currently will reflect in the results in the ensuing periods,’’ said Kapur.

The Mumbai-headquartered NIA, the country’s largest non-life multinational company, with presence in 28 countries, currently, is growing its top line cautiously and its  gross written premium increased by 9.8 per cent y-o-y to Rs 11,362 crore during the June quarter.

“The premium growth was driven by the Motor line of business which grew by 21.8 per cent. After several years of muted growth, it is heartening to see the segment reporting a healthy premium growth,’’ said Kapur.

Its total income rose to Rs 9,274 crore in the first quarter of the current fiscal, as against Rs 8,143 crore, The gross NPA of the insurer came down to 0.85 per cent from 1.19 per cent in the first quarter of the previous fiscal.

NIA witnessed an improvement in solvency margin to 1.85 per cent as against 1.72 per cent in the June quarter last year.