Public general insurer New India Assurance has posted profit after tax (PAT) of Rs 843.6 crore for financial year 2012-13, compared to net profit of Rs 179.3 crore posted in FY12.
The combined ratio of the company stood at 119.26% in FY13 compared to 129.03% in FY12.
Combined ratio is a measure of profitability used by an insurance company. Here, a ratio below 100% indicates that the company is making underwriting profit while a ratio above 100% means that it is paying more amount for claims than the amount received from premiums.
The net worth of the company, touched Rs 7,737.36 crore growing from Rs 7,057.61 crore in the previous financial year. The company collected total premiums of Rs 10,038 crore in India, recording a growth rate of 18%.
The foreign operations of the company, spread over 22 countries, generated a premium of Rs 2467 crore, up by 17.6 % over previous fiscal. The global business for the year was Rs 12,505 crore, higher by 18% than that of previous fiscal.
The total investments of the Company rose to Rs 31,559.06 crore from Rs 28,626.53 crore in 2011-12. New India mopped up Rs 2791.05 crore from the investment operations which was 19.05% more than that of last year. Incurred loss came down from 90.01% to 86.16%, whereas underwriting losses came down to Rs 1,800 crore, from Rs 2,200 crore.
Motor segment is the primary contributor to the loss.
Their Board has recommended a dividend of 85 % on its paid up capital of Rs 200 crore, amounting to Rs 170 crore. In 2011-12, the dividend proposed was 20%, amounting to Rs 40 crore. Their cash reserve stands at Rs 4000 crore.
G Srinivasan, Chairman and Managing Director of New India Assurance said, "We are targeting global premium of Rs 15,000 crore for the year 2013-14, aiming for a growth of 20%. The growth would be driven by retail business through a significant augmentation of the agency force." The company plans to have 1 lakh agents by March 31, 2015.
The company is launching a major drive to settle motor Third Party claims through conciliations including Lok Adalats during the year. Further, they are planning to enter new markets in Qatar, Myanmar and Canada to broaden the foreign operations, by the end of this fiscal.