New India Q2 net soars threefold to Rs 748 crore

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Mumbai | Published: November 16, 2017 3:41:48 AM

The gross written premium was Rs 6,489.15 crore, a growth of 12.18% compared to Rs 5,784.61 crore during the same quarter in the previous financial year.

New India Assurance, New India, key profitability gauge, insurer is performing in its daily operationsThe gross written premium was Rs 6,489.15 crore, a growth of 12.18% compared to Rs 5,784.61 crore during the same quarter in the previous financial year.

New India Assurance (NIA) on Wednesday reported an increase of 187.52% in its net profit for the July-September quarter at Rs 748.27 crore, driven by a better combined ratio, a key profitability gauge of the industry. The country’s largest general insurer has reported a profit of Rs 260.24 crore in the corresponding quarter a year ago. The combined ratio, which indicates how well the insurer is performing in its daily operations, dropped to 112.57% from 124.2% in the previous year. The gross written premium was Rs 6,489.15 crore, a growth of 12.18% compared to Rs 5,784.61 crore during the same quarter in the previous financial year.

The insurer posted an operating profit of Rs 395.88 crore in September quarter compared to a loss of Rs 170.75 crore in the same quarter in the previous financial year. The company declared an interim dividend of 75%. The payout for the company would be about Rs 300 crore. The jump in the quarterly earnings has helped the company to post a profit of Rs 1247.68 crore in the first half of FY 18, an increase of 160.80%. The company at present enjoys a 15% market share.

“We have been taking steps over the last one year and so we were able to report operating profit by cutting losses in health and motor segment,” said G Srinivasan. Regarding growth plans, Srinivasan said NIA’s strategy is to grow in line with the market, said he expects the market to grow by 18-20%. This is the first time the company is declaring its results after its debut on the bourses on Monday. The company made its debut on the bourses on Monday. NIA’s shares opened at Rs 748.90 on the BSE on Monday, 6.39% below the issue price of Rs 800, NIA shares fell further to close at Rs 725.05, down 9.37%. On Wednesday the stock ended the session at Rs 681.75, 14.78% below its issue price.

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