New India Assurance (NIA) has posted a net profit of Rs 635 crore, up 27 per cent in the first quarter of FY 2018-19.
The company’s combined ratio, the key parameter in assessing the profitability, declined to 111.02 per cent in Q1 2018-19 from 111.03 per cent in Q1 207-18 and adjusted combined ratio of the company also reduced to 94.72 per cent in the reporting period.
NIA’s share price has gone up by almost 6 per cent to Rs 291 on Monday trading in the BSE.
The largest general insurance company, with a market share of 16.8 per cent in the country, has mobilsed a gross direct premium of Rs 6053 crores, up 12.6 per cent, during the reporting quarter. The company’s global gross written premium has soared by almost 10 per cent to Rs 6961 crores in Q 2018-19 as against Rs 6334 crores in Q 2017-18.
G.Srinivasan, the outgoing Chairman Cum Managing Director, NIA, said,“The company has improved its operating performance during the first quarter. The company is focused to reduce combined ratio in the coming periods. The company expects to improve the operating performance in days ahead.''
The Indian general insurance Industry is poised for a great expansion in the coming years and New India as the market leader would leverage this for continued better performance, he said.
The investment income of the company has gone up by 26 per cent to Rs 52,360 in Q 2018-19 from Rs 414 crore in Q1 2017-18.
However, the underwriting losses of the company have gone up by 9 per cent from Rs 655 crore to Rs 713.43 crore during Q1 2018-19. The incurred claim ratio has almost remained flat at 87.84 per cent during the reporting period.
The operating profit of the company has gone up by 29 per cent to Rs 229 crores in Q1 2018-19 as against Rs178 crores in the year-ago quarter.The solvency margin of the company continued to be healthy at 2.66x while the ROE of the company has been healthy at 16.1 per cent.