Public sector general insurance major United India Insurance Company (UII) has reported a 27% decline in its net profit for the fiscal ended March 31, 2016 to Rs 221 crore, compared with Rs 301 crore in the previous fiscal.
Despite huge competition from both public and private sector players, the company reported a 14.58% growth in its premium to Rs 12,250 crore, against Rs 10,692 crore in the previous fiscal.
The sharp drop in net profit was due to recent Chennai floods, where the insurance major settled 7,480 claims (98% of total claims) amounting to Rs 1,413 crore, said Milind Khaarat, chaiman and managing director.
Investment income for the year stood at Rs 2,472 crores as against Rs 2,126 crore in the previous year, up over 16%. The market value of total investment portfolio at the end of the year was Rs 24,021 crore and the net worth stood at Rs 5,731 crore against Rs 5,589 crore.
The company’s business (premium) growth was mainly driven by 30% growth in health insurance, followed by 13.42% growth in motor premiums. While fire insurance grew at 5%. personal accident portfolio and liability portfolio have posted growth of 10% and 17%, respectively.
According to him, verticals such as LCB and SME grew 16% and 26%, respectively, despite stiff competition and posted Rs 473 crore. The bancassurance vertical also made big strides growing at 20.63% during the year with 45 bancassurance partners procuring premiums of R643 crore.