New India Assurance posted a net profit of ₹900 crore for the nine-month period ended December, up 27.2 per cent on year even as gross premium growth was muted at 1.9 per cent. The profit before tax increased by 33 per cent to ₹1,086 crore.
For the reporting quarter, the insurer posted profit after tax of ₹749 crore, up 52.4 per cent on year. “The muted growth in premium was due to the same period during the previous year recording significant revenues from the crop line of business and some government business, which were not there this year as also shedding certain loss-making businesses,” said Chairperson and MD Neerja Kapur.
Property line of business performed well, and the health line of business showed improved results during the period. Adverse development of claims in crop line of business and severe competition in motor line of business adversely impacted the results during the period, she added.
New India Assurance made provisions of ₹3,100 crore during the nine-month period pertaining to additional liabilities on account of wage arrears and related AS 15 liabilities. However, the impact was partially offset by additional capital gains realised in favourable market conditions.
The incurred claims ratio improved to 94.7 per cent from 99.5 per cent a year ago. The overall combined ratio too improved to 116.4 per cent from 120.0 per cent.
The solvency ratio was at 1.91 times at the end of December, and the net worth was around ₹39,000 crore. “Going forward, the company will continue to target profitable growth and looks forward to further improving its operating performance,” Kapur said.