Girija Subramanian,CMD , New India Assurance
Going forward, the company will be focusing on the retail segment and better performance can be expected in the coming quarters, Girija Subramanian, CMD, New India Assurance, who took charge of the company in June
Mumbai: With higher claims, New India Assurance(NIA), in its domestic operations, has seen its net profit falling by almost 17 per cent to Rs 217 crore in the quarter ending June 2024.
The board of the company met today under its new CMD Girija Subramanian to finalise the results.
NIA, the country’s largest multinational, has recorded gross premium of Rs 11,888 crore, showing a minor growth during the reporting quarter.
Commenting on the results Subramanian said, “The gross written premium growth was muted at 3.74 per cent as the company continued to rationalise its portfolio mix, in favour of lines where profitability is better. The incurred claim ratio was impacted by elevated loss ratio in the Motor segment, especially in the Motor third party segment where no premium increase has been notified yet. Health segment loss ratio was adversely impacted by the government business segment which saw higher incurred claims, primarily due to seasonal factors, and this segment should see improved performance going ahead. Other segments performed well.’’
Going forward, the company will be focusing on the retail segment and better performance can be expected in the coming quarters, said Subramanian..
The net worth of the company has increased from Rs 44,704 crore in March 2024 to Rs 47,703 crore in June 2024, added Subramanian.
The company’s total income, at Rs 9,865 crore, has gone up by 7 per cent year -on -year(Y-O-Y) in Q1FY25 while its total expenses, at Rs 10,117 crore, has risen by as much in the reporting quarter.
The combined ratio of the insurer, one of the key matrix in assessing the profitability of a non-life company, has slightly deteriorated to 115.82 per cent in Q1FY 25 over 115.07 per cent in the year-ago period.
The underwriting losses of the company have risen to Rs 1,569 crore in Q1FY 25 from Rs 1446 crore in the corresponding quarter of FY 24.
The incurred claim ratio has marginally fallen to 95.77 per cent in the June quarter.
NIA’s investment income has declined to Rs1852 crore in Q1FY25 as against Rs 1908 crore in Q1FY24.
However, the company’s investment assets have surged by almost 10 per cent to Rs 98,770 crore in reporting quarter as against Rs 90,152 crore in the year-ago period.
In a healthy sign, except Health, the company’s largest portfolio, and Motor, rest of the portfolios of the insurer have remained profitable during Q1FY 25.