New India Assurance posts Rs 617 crore profit in the third quarter
The company has exited from many loss-making portfolios especially in the health and motor segments. The company has exited from many loss-making portfolios especially in the health and motor segments.
Public sector New India Assurance Company, India’s largest non-life insurance company, has reported a profit after tax (PAT) of Rs 617 crore for the third quarter ended December 2017 against a loss of Rs 24 crore in the same period a year ago, largely due to the reduction in claims ratio in motor and health segments.
While the combined ratio dropped to 109.1 per cent in third quarter compared to 123.9 per cent in the same period a year ago, the gross written premium for the company stood at Rs 6,385 crore in Q3 of FY 18 as against Rs 5,213 crore a year ago, showing a rise of 23 per cent. The bottom line was also boosted by low expense ratio.
G Srinivasan, chairman cum managing director said, “the results have improved substantially due to improvement in combined ratio. The drop in combined ratio was aided by lower claims ratio and operating expense ratio due to various steps taken by the company.”
The company has exited from many loss-making portfolios especially in the health and motor segments. Even underwriting losses of the company improved to Rs 464.30 crore in third quarter as against Rs 1036.89 crore in same quarter last fiscal. Incurred claim ratio of the company at the end of third quarter stood at 82.82 per cent as against 95.61 per cent in same period a year ago.
On the National Healthcare Protection Scheme proposed in the recently concluded Union Budget 2018-19, Srinivasan said, “the new scheme is a
game changer and will contribute to insurance penetration going up in a big way. The insurance sector will also be greatly benefited by various measures announced in the Budget to improve the rural economy and infrastructure.
New India Assurance plans to launch two health insurance schemes and title insurance in the next few months, he said.
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