New India Assurance reported a 42 percent jump in net profit at Rs.441 crore in the first quarter ended June 31, 2015, as against Rs.311 crore in the year ago period. Premium from India and overseas increased 14 percent each (year-on-year) to Rs.3,877 crore and Rs.711 crore respectively.
Investment income edged up marginally to Rs.965 crore (Rs.938 crore in the year ago quarter). The combined ratio, which is an indicator of profitability of an insurer, improved to 110 percent from 115 percent in the year ago quarter. The incurred claims ratio also improved to 76 percent from 87 percent.
Chairman & Managing Director, G. Srinivasan, attributed the improvement in the combined ratio to reduction in claim ratio and expenses and increase in premium earnings. While the retail line of business continues to grow, he pointed out there was also a recovery in the corporate segment, with some select large corporate undertaking expansion plans.
Looking forward, the company is eyeing a global premium of Rs.18,000 crore; Rs.15,000 crore from domestic operations and balance from overseas in FY 2016.
Currently, retail line of business accounts for 65 percent of the total business. The balance is accounted by the corporate segment. With regard to the plans of expansion, Srinivasan said his company will open 300 micro offices this year, taking the number of such offices to 1,500. It will also open a representative office in Qatar.
The insurer has tied up with 237 banks to push the Pradhan Mantri Suraksha Bima Yojana. These tie-ups have resulted in enrolments of about Rs 1.30 crore as of June and the premium procured was Rs.11.3 crore. So far, the insurer has received 16 claims, of which it has settled 13.
