Public sector general insurance behemoth United India Insurance (UII) has reported a profit after tax of Rs 1,003 crore for the fiscal ended March 31, 2018 as compared to a loss of Rs 1,914 crore in the previous fiscal.
The gross direct premium during the fiscal under review grew sharply to Rs 17,430 crore as against Rs 16,063 crore in the previous fiscal.
The net earned premium too jumped sharply to Rs 12,861 crore as against Rs 12,032 crore in the previous fiscal of 2017, the company said here on Tuesday.
During the year, the net incurred claims stood at Rs12,138 crore as compared to Rs 12,881 crore in FY17. The combined ratio down to 119.77% from previous fiscal’s 136.94%. The general insurance major brought down the underwriting losses to Rs 2,542 crore as compared to Rs 4,444 crore in the previous fiscal, the release added.
The investment income (net) stood higher at Rs 3,770 crore (Rs2,532 crore) while profit before tax was at Rs 1,228 crore as against loss of Rs 1,913 crore. The company achieved solvency ratio of 1.54 as against 1.15 as on March 31, 2017. The solvency recovery drivers were prudent underwriting practices, re-pricing strategies, quota share treaty and subordinated debt of `900 crore. The networth stood higher at Rs4,820 crore as against Rs3,817 crore in the FY17 fiscal.
The credit rating of the company was AAA Stable awarded by Crisil for high claims paying credentials and financial strength rating of B++ from A M Best, International rating agency. United India is in the forefront in underwriting state government health insurance schemes in Tamil Nadu, West Bengal, Goa and Chhattisgarh.