Chennai:
Chennai based United India Insurance(UII), one of the merging state run general insurers, has improved its key financial numbers significantly in terms of net profit , combined ratio, underwriting losses and solvency margin in 2017-18.
The company has recorded a net profit of Rs 1003 crore in 2017-2018 as against losses of Rs 1914 crore in 2016-17.
UII has a posted a profit before tax of Rs 1228 crores in 2017-18 as against losses of Rs 1913 crore in 2016-17.
With a gross direct premium of Rs 17,430 crores, showing a growth of 8.51 per cent and accretion of Rs 1367 crores in 2017-18, the company’s underwriting losses have fallen by 43 per cent to Rs 2542 crore in 2017-18 as against Rs 4444 crore in 2016-17.
UII’s combined ratio has been cut down to 119.77 per cent in 2017-18 as against 136.94 per cent in 2016-17.
The solvency margin of the company has touched 1.54 as against 1.15 in 2016-17.
The company’s investment income has soared by almost 50 per cent Rs 3770 crores in 2017-18 as against Rs 2532 in 2016-17.
MN Sarma, the outgoing CMD, UII said, “This was achieved by measures such as underwriting control specially in health and third party motor portfolio, focus on better-priced products and raising of subordinated debt of about Rs 900 crore in the last financial year.”
He also added that, the company had to give up about Rs 800 crore worth of group health business due to inadequate pricing.
“I am sure all of you will continue to perform well in the same spirit in 2018-2019 also and take our company to much greater heights ,’’ said Sarma, who is retiring in May end.
Earlier, effecting a remarkable turnaround in performance, Delhi based Oriental Insurance Company(OIC) , another merging company, had posted a net profit of Rs 1510 crores in 2017-18 as against losses of Rs 1691 crores in 2016-17. The company also improved its key financials including underwriting losses, combined ratio and solvency ratio in 2017-18.
The third merging general insurer, National Insurance Company(NIC) is expected announce its results in fortnight’s time.
The government intended to merge three of state run general insurers because of weak financial performance in 2016-17 and to form a stronger merged entity to reap healthy disinvestment proceeds while listing,
Though, the governmemt wants complete the mereger by the end of 2017-18, indications are there suggest that it will delayed beyond this deadline.