Despite an underwriting loss of Rs 1,793 crore due to huge claims from Hudhud cyclone and the killer J-K floods, New India Assurance today reported 42 per cent rise in net income at Rs 996 crore in the December quarter, driven by higher investment income and improved efficiency.
The investment income rose to Rs 2,980 crore during the period under observation from Rs 2,345 crore in a year-ago period.
The incurred loss ratio increased by around one per cent to 87.24 per cent during the reporting period from 86.26 per cent.
"Though the Hudhud cyclone and the J&K floods marginally increased our incurred loss ratio, the overall performance saw very good improvement through better efficiencies and higher growth during the third quarter of the current fiscal," New India Assurance chairman and managing director G Srinivasan told reporters.
"While we paid claim to the tune of Rs 200 crore for J-K floods, we also settled claims worth Rs 450 crore for Hudhud claims during the period," he added.
The global business grew 13.34 per cent to Rs 11,181 crore as against Rs 9,865 crore.
"We are looking at crossing the mark of Rs 16,000 crore in global business by the end of the next fiscal," Srinivasan said.
The company's domestic business went up by 14.91 per cent to Rs 9,580 crore from Rs 8,337 crore.
The networth rose 13.63 per cent to Rs 9,643 crore from Rs 8,486 crore. Reserves also went up 13.70 per cent to Rs 9,306 crore and the asset base crossed Rs 60,200 crore-mark up from Rs 50,514 crore.
The company's combined ratio marginally fell by three basis points to 117.19 per cent from 117.22 per cent.
Srinivasan said the formation of the third party administrator by all the four state-owned non-life insurers is likely to come into operation by April.
On nuclear insurance pool, he said that "my company will be contributing Rs 200 crore out of Rs 750 crore which will be contributed by all the state-owned non-life insurers.
