New India Assurance Q2 net profit up 4.8% at Rs 556 crore

The New India Assurance Company reported a 4.8% year-on-year increase in its net profit to Rs 555.59 crore in the second quarter of the current fiscal. The net premiums for the country’s largest non-life insurer stood at Rs 6,543.42 crore, witnessing a growth of 9.7% compared to same quarter last year.

The insurer also saw improvement in the underwriting losses. According to the exchange filing, non-life insurers witnessed underwriting losses of Rs 543.04 crore in the second quarter compared to Rs 1,019.07crore in same quarter last year. New India Assurance have seen underwriting profits in motor and liability insurance in the second quarter of current fiscal.

Atul Sahai, chairman-cum-managing director at New India Assurance, said, “Compared to the industry the company has registered much better growth and has also increased its market share to 14.56% as of September 2020. The growth has been accompanied by healthy operating metrics with combined ratio declining from 116.62% in H1FY20 to 105.75% in H1FY21. The adjusted combined ratio, (which accounts for investment income on policyholders’ funds), a better indicator of operating performance, improved from 99.34% to 94.26% during the same period.”

The incurred claims ratio has shown a considerable improvement from 92.81% in H1FY20 to 75.69% in H1FY21. Incurred claim ratio is a ratio of the total value of claims paid or settled to the total premium collected in any given year. Even the combined ratio has improved from 116.62% in H1FY20 to 105.75% in HIFY21.

The insurer has consolidated its market share to 14.56% and continues to be the market leader in non-life insurance sector. The solvency margin of New India Assurance increased from 2.08x as of September 2019 to 2.14x as of September 2020. The stock of New India Assurance Company on Wednesday ended at Rs 104.65, up by 1.36% or Rs 1.40, on BSE.