“I am happy to announce that we have been able to renew the prestigious government health scheme in the state of Rajasthan which will cover close to 1.3 crore families. The new policy which will start in February 2025 has seen a per-family premium increase of about 20 per cent. Overall growth momentum is expected to be better going forward,’’ said Girija Subramanian, CMD New India Assurance
Mumbai: Indicating the return market discipline and a costlier Apr 1 renewals in the Indian general insurance market that had seen huge undercutting of Fire premium in recent months, Girija Subramanian, CMD, New India Assurance, has said the premium in the property segment has shown signs of hardening in since January beginning.
NIA’s gross written premium has almost remained flat at Rs 10,777 crore in Q3FY 25 against Rs 10,664 crore in Q3FY24.
“The gross written premium growth was muted as the company had taken a conscious call to not renew certain large accounts where premiums were inadequate,’’ stated Subramanian while announcing the results of the company, the country’s largest general insurance multinational, on Monday.
` I am happy to announce that we have been able to renew the prestigious government health scheme in the state of Rajasthan which will cover close to 1.3 crore families. The new policy which will start in February 2025 has seen a per-family premium increase of about 20 per cent. Overall growth momentum is expected to be better going forward,’’ said Subramanian.
Though, the company’s combined ratio has improved to 116.33 per cent for the third quarter (Oct-Dec ) ending in Dec 24, from 116.24 per cent in the corresponding period of the previous fiscal, it has seen a higher underwriting losses of Rs 1456 crore in Q3FY25 against Rs 1366 crore in the year-ago period.
“ Despite the intermediary remuneration levels seeing an increase due to intense competition, the combined ratio improved for the period up to Dec 24 The solvency ratio has improved from 1.81x in Sep 2024 to 1.90x in Dec 2024. Our efforts will be to improve the combined ratio even further,’’ added Subramanian.
The company’s net profit has fallen by almost 50 per cent to Rs 353.46 crore in the reporting period due to fall in its investment income, higher underwriting losses and provisioning for higher wages and pension of employees..
NIA’s investment income has fallen by 13 per cent to Rs.5695 crore in Q3FY25.
However, NIA’s operating metrics have shown improvement despite the adverse impact of increased claim ratio in the Motor segment due to the lack of price increase in the Motor Third Party line of business, explained NIA chief.
NIA’s Fire(constituting 15 per cent of the company’s portfolio), Marine(2 per cent) and Engineering portfolios have remained profitable during the reporting quarter.
The insurer wants to rationalise its operating offices and increase digital penetration to increase its profitability in future