The New India Assurance Co has posted a 78.10 per cent rise in the net profit at Rs 716.38 crore for the year 2005-06, from Rs 402.23 crore in 2004-05. | |
| The total assets of the company have increased by 36.3 per cent to Rs 27,025.58 crore in 2005-06 from Rs 19,827.19 crore in 2004-05. |
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| The company's solvency margin is 3.97 times of that required by the Irda. The underwriting profit has decreased from Rs 232.78 crore in 2004-05 to Rs 36.03 crore in 2005-06 due to higher exposure to motor insurance, decision to increase the retention and the 13.5 per cent increase in wages. |
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| The industry is expecting some more losses after an estimated loss of around Rs 1,000 crore due to the floods in Surat. For New India Life Assurance, the claims payout is Rs 150 crore. |
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| During the year the company has issued bonus shares and the paid up capital of the company has increased from Rs 150 crore to Rs 200 crore. The company has also proposed a dividend of Rs 130 crore at the rate of 65 per cent. |
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| In the Indian operations, the gross premium increased by 13.79 per cent to Rs 4791.50 crore from Rs 4,210.81 crore. |
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| The claims ratio of the company had gone up from 74.85 per cent in 2004-05 to 83.63 per cent in 2005-06. The claims ratio for motor portfolio is 181 per cent and the premium on it was Rs 2,200 crore. |
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| The company is segmenting its health products into high income, middle income and low income groups and will determine pricing based on the segment. Health is growing at 35 per cent CAGR. |
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| The experience in the two wheeler is good in some areas and not in others. In the private cars it is quiet allright and in the commercial and the passenger vehicles bad from past 7-8 years. |
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