New India Assurance Q1 net up 3% on better loss ratio, less motor insurance claims
The New India Assurance Company on Friday reported a net profit of Rs 286.47 crore for the first quarter of the current fiscal, compared with Rs 278.11 crore in the year-ago period, an increase of 3%.
Gross premiums for the country’s largest non-life insurer stood at Rs 8,368 crore during the quarter, a growth of 6.5% compared to the same quarter last year.
The incurred claims ratio has shown an improvement, from 92.77% in Q1FY20 to 66.28% in Q1FY21. Even the combined ratio improved from 116.28% to 102.14%. Incurred claim ratio is a ratio of the total value of claims paid or settled to the total premium collected in any given year.
Atul Sahai, chairman-cum-managing director, said, “There has been a significant improvement in the loss ratio, which, apart from the loss minimisation and corrective pricing actions undertaken, was also due to the reduced incidence of motor claims.”
The income from investments came down to Rs 599.24 crore in the first quarter, compared to Rs 986.05 crore in previous financial year.
The insurer witnessed underwriting profits in marine, motor and health segments in the quarter under review, bucking the industry trend.