New India Assurance Q1 profit up 42% at Rs 441 cr

Global premium grew at 14.13% from Rs 4,020 cr in previous year Q1 to Rs 4,587 cr in current year

New India Assurance saw a 42 per cent increase in its profit after tax on account of reduction in incurred claims and better expense management. It posted a net profit of Rs 441 crore for the June 2015 quarter compared with Rs 311 crore in the year-ago period.

Global premium grew 14 per cent from Rs 4,020 crore to Rs 4,587 crore. Domestic premium grew 14 per cent from Rs 3,398 crore to Rs 3,877 crore.

G Srinivasan, chairman and managing director of New India, said the firm’s operating expenses came down considerably. Combined ratio comprising expenses, incurred claims and losses dropped to 110 from 115 per cent. A ratio below 100 per cent indicates the insurer is making underwriting profits. The incurred claims ratio came down to 86 per cent from 87 per cent.

Their operating expenses ratio dropped to 16 per cent from 20 per cent.

The net worth grew at 14 per cent to touch Rs 10,172 crore in the June 2015 quarter against Rs 8,944 crore in the same period last year. Investment assets at market value stood at Rs 47,949 crore against Rs 43,200 crore.