United India Insurance Company has clocked a profit after tax (PAT) of Rs 356.21 crore during the first half year of 2015-16 as against Rs 376 crore crore, a year ago.
Milind Kharat, chairman and managing director, UII attributed the drop mainly to Rs 260 crore provision for wage revision, increase in health claims ratio to 110% from 98% and others.
The company has collected a premium of Rs 5,914 crore for the half year ended September 30, 2015 as against Rs 5,291 crore, a year ago an increase of 11.77%, as against industry growth of 11.2%.
Kharat said that major growth drivers for the company were motor and health segments which grew at a rate of 14% and 22% respectively.
Claims ratio has been contained at 83.52% during the first half of the current fiscal.
He noted, company has paid Rs 344 crore as claims during J&K flood and Rs 872 crore during Cyclone at Andhra Pradesh.
He added, so far the company has received claims intimation worth Rs 110 crore for 130 claims and expects more due to the floods, for the last one week, in Tamil Nadu.
On way forward, Kharat said the company has set a target of Rs 11,800 crore premium for 2015-16 as against Rs 10,692 crore and set a target of Rs 600 crore PAT as against Rs 300 crore PAT in 2014-15.
PAT level has come down from around Rs 500 crore in 2013-14 to around Rs 300 crore in 2014-15 mainly due to provision towards wage revision.
On Investment income, A V Girija Kumar, director and general manager, UII said that the investment income of the company for the first half year stood at Rs 1073.84 crore as against Rs 1067.40 crore, a year ago.
The market value of the company's total investment portfolio at the end of the second quarter was Rs 25,331 crore and the networth of the company stood at Rs 5,497 crore as on September 30, 2015.
He noted, yields have been coming down in government bonds and banks interest rates were also reduced.
According to Kumar from the level of 8.87% it has come down to 8.32% as on September 30, 2015.
The company which was planning to invest around Rs 1,200 crore in 2015-16, so far invested around Rs 1,000 crore and would invest around Rs 200-300 crore by end of March 2016.