The New India Assurance Company Limited (NIACL), a listed state-owned general insurer, has reported 4.5 per cent decline in net profit for the quarter ended December 31, 2023, at ₹715 crore (₹749 crore). In the September 2023 quarter, NIACL had recorded a net loss of ₹200 crore.
Net premium earned for the quarter under review grew 14 per cent at ₹8,946 crore (₹7,861 crore). It was also up nine per cent over a net premium of ₹8,206 crore recorded in the September 2023 quarter.
For the nine months ended December 30, 2023, NIACL reported a net profit of ₹775 crore, down 14 per cent over net profit of ₹900 crore recorded in same period last fiscal.
Commenting on the latest financial performance, Neerja Kapur, Chairperson & Managing Director said, “FY24 continues to be a challenging year for the company. In the third quarter, the country witnessed catastrophic events like cyclone Michaung and floods in South India, Sikkim and West Bengal. The net impact of these events on the company’s third-quarter results was about ₹358 crore. This is in addition to the ₹ 301 crore of catastrophe claims that adversely impacted the results in the first half”.
The motor own damage (OD) loss ratio improved while the third-party segment loss ratio was higher as premiums were largely unchanged in this segment. The health segment loss ratio is improving due to the price corrections undertaken in the retail segment and more prudent underwriting in the group segment although it has impacted the topline growth, she added.
“Considering this backdrop, the reported results have been excellent. The Indian general insurance industry has a long runway for growth, and the company will continue its strategy to pursue growth with profitability”, Kapur added.
The Gross Written Premium grew by 15.4 per cent compared to the same quarter last year and 10.5 per cent in the nine months compared to the previous year. The solvency ratio remains healthy at 1.72, she said.