New India raises FY17 profit by 22%; eyes 17% biz jump in Fy18
State-run New India Assurance has reported a net profit at Rs 1,008 crore in fiscal 2017, up 22 percent over the previous year, driven by investment income which whittled down the high underwriting losses.
The largest non-life insurer also set around 17 per cent growth in total premium (global premium) income at Rs 26,000 crore in fiscal 2018 from Rs 22,279 crore it achieved in fiscal 2017, which was a 21.27 percent growth over the previous year. In the reporting year, the state-run company, which has 16 percent market share and is bound for a public float later this fiscal year, had a domestic premium income of Rs 19,115 crore, a growth of 27.17 per cent from Rs 15,115 crore a year before.
Sharing the numbers, New India Assurance chairman and managing director S Srinivasan said this is the second best net income for the company after the Rs 1,200 crore it had reported in fiscal 2015.
He said the company has suffered underwriting losses to the tune of Rs 3,500 crore primarily due to three big fire incidents in the year as well as the Chennai and Wardha cyclones.
In fiscal 2016, its underwriting losses stood at a low Rs 3,100 crore. The three fire incidents alone cost the insurer a whopping Rs 1,200 crore in the year, he added.
New India also suffered 100 per cent claim ratio from new crop insurance business, whose premia touched Rs 1,050 crore and plans to increase it to Rs 1,500 crore this year.