New India Assurance half yearly PAT up by 115%

The half yearly net profits of New India Assurance rose by 115% for the half-year ended September 30, 2012 compared to the same period last year. The net profit of the state owned general insurer stood at Rs 205.09 crore for the period compared to Rs 95.04 crore in the same period last year.

For this period, the company's Indian operations stood at Rs 5,000 crore, up by 15% and foreign operations saw a growth of 34.14%. The management expenses were down from 27.8% in 11-12 to 23.86% this year.

G Srinivasan, CMD, New India Assurance said, "We have maintained the tempo of good performance. We expect about Rs 12000 crore global premium in this fiscal."

He added that they would open up an additional 300 micro offices by the end of this fiscal. They already have 264 micro offices across India.

He further said that the growth in business has come from the health and motor segment. The company has already sent a request to the regulator for improvement of rates in individual health segment.

The company took an impact of Rs 100 crore during the period due to the weakening of the Indian rupee. Further, claim ratios in the health segment came down from 104% to 88%. Srinivasan mainrtained that the ideal figure should be around 80%.

The combined ratio of India's largest general insurer stood at 124.91% as on 30 September, 2012, compared to 129% iduring the same period last year. The investmebt income stood at Rs 1342.06 crore, up by almost Rs 100 crore compared to Rs 1258.46 crore in previous year fast half.

Going forward, Srinivasan explained that they would compete with its peers, not by offering lower rates but by better quality and better services.