Non-life insurer New India Assurance Co Monday reported a 56 per cent decline in net profit to Rs 328.64 crore for the quarter ending September due to 'catastrophic losses' in India and abroad.
Company's net profit was at Rs 748.26 crore in the similar July-September period of 2017-18.
Total income of the insurer rose to Rs 6,237.29 crore in the second quarter of 2018-19 as against Rs 5,719.38 crore for the same period of 2017-18, the company said in a regulatory filing.
The company said it wrote gross premium of Rs 6,505.14 crore in the said quarter, against Rs 6,489.15 crore in the year-ago quarter.
"The performance was adversely impacted due to catastrophic losses in India and abroad. The loss ratio under major line of business --health has shown improvement in the second half of 2018-19. The company continues to be the market leader," New India Assurance Co chairman Hemant G Rokade said.
New India Assurance Co is the largest non-life insurance company of India with a market share of 14.4 per cent. It operates in 28 countries.
The insurer said that Rs 36.98 crore has been deducted by Rajasthan government under Bhamashah Health Insurance Scheme towards delay or rejection of claims under the scheme and tax matters.
The company is in the process of getting the same refunded by the government of Rajasthan and no provision was required against the same, it said.
New India Assurance said the company has a receivable from agent amounting to Nafls (Netherlands Antillean guilder) equivalent to Rs 30.04 crore as on September 30, 2018 at its Curacao branch. Out of this, an amount equivalent to Rs 24.57 crore is due for more than 90 days.
"The company has been taking effort to recover the amount from the agent and is hopeful of recovery and signed an agreement in this regard. As a prudent measure, a provision of Rs 5.59 crore as on September 3 is carried in the accounts," it added.
Shares of the company closed 1.39 per cent higher at Rs 229.50 on BSE.
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