Hit by higher claim settlements, public sector general insurance major United India Insurance (UII) has reported a 43% drop in its net profit for the year ended March to R301 crore compared with R528 crore in the previous fiscal.
The company reported a 10% growth in premium to R10,692 crore against R9,709 crore in the last fiscal, primarily fuelled by health, motor and fire insurances growing by 19%, 12% and 5%, respectively, the company said in a statement.
The net incurred claims were affected due to the catastrophic floods in J&K and HudHud cyclone losses in Andhra Pradesh. The company received 5,005 claims from both the catastrophes amounting to R1,200 crore. More than 95% of these claims were settled in the first month. Despite this, the company was able to post a claim ratio of 84.42% which is a nominal increase of 1.86% over last year.
The investment income for the year stood at R2,126 crore against R1,857 crore, an increase of over 14%. The market value of the company’s total investment portfolio at the end of the year was R25,385 crore and the networth stood at R5,589 crore against R5,361 crore, an increase of over 4%.
The LCB (large corporate and brokers) vertical, despite stiff competition, grew 16%. The SME vertical grew 80% to reach R165 crore. The agency vertical grew 13% in the year, with an accretion of R867 crore. The company recruited 7,683 agents last year and plans to take the agency strength to 82,000 in the current year.
The bancassurance vertical also made big strides growing 8% in the year, with 49 bancassurance partners spread across major public sector, rural and cooperative banks across the country.
Under Pradhan Mantri Suraksha Bima Yojana, the company has enrolled over 1 crore customers. The solvency ratio stood higher at 2.36 against regulatory compliance of 1.50. The company is optimistic and would expect to post a premium of R12,345 crore with 15% growth in the current fiscal, the statement added.