New India Assurance doubles net profit in Q-1

(Source: New India Assurance)

Riding on better claim and operating ratios, the net profit of public sector New India Assurance more than doubled in the April-June quarter at Rs 499.41 crore as against Rs 218 crore in the year-ago period. While incurred claim ratio of the company came down to 87 per cent from 89 per cent a year ago, its combined ratio, indicating overall financial health of the company, has improved from 116 per cent to 111 per cent during the reporting period. The company’s expense ratio also improved to 16.19 from 19.84 in the year-ago period.

NIA’s gross premium was up 17 per cent at Rs 6,132 crore from Rs 5,263 crore a year ago. The company is targeting to achieve gross premium of Rs 26,000 crore by the fiscal-end which will include the domestic premium of Rs 22,000 crore. Underwriting loss of the company also came down to Rs 655 crore in the reporting period from Rs 737 crore a year ago.

The investment income of the company has gone up by 30 per cent to Rs 1,248 crore in the reporting period.