New India Assurance falls as Q1 PAT falls 12% YoY | Capital Market News

Last update: August 09, 2024 | 1:52 PM IST

Shares of New India Assurance Company fell 2.68 per cent to Rs 253.80 after consolidated net profit declined 12.37 per cent to Rs 232.80 crore in the first quarter of fiscal 2025 from Rs 265.66 crore in the corresponding quarter of the previous year.

Total income increased by 5.71% year-on-year (YoY) to Rs 9,865.29 crore for the quarter ended June 30, 2024.

Consolidated profit before tax stood at Rs 272.09 crore for the quarter ended June 2024, down 14.38 per cent as compared to Rs 317.80 crore in the corresponding quarter last year.

For the quarter ended June 30, 2024, gross written premium stood at Rs 1,188 crore, up 3.43% year-on-year.

Net premium written during the first quarter of FY25 stood at Rs 9,630.09 crore, up 4.08 per cent over the same period a year ago.

Commenting on the Q1 results, Girija Subramanian, CMD said, “Gross premium growth was muted to 3.74% as the company continued to rationalize its portfolio mix in favor of lines where profitability is better. The claims incurred ratio was impacted by elevated loss ratio in the automotive segment, especially in the third party automotive segment, where no premium growth was recorded yet.”

The loss ratio in the Health segment was adversely impacted by the Government business segment which saw higher claims, mainly due to seasonal factors and this segment is expected to see an improvement in performance going forward. Other segments performed well. The company’s net worth increased from Rs 44,704 Cr in March 2024 to Rs 47,703 Cr in June 2024. Going forward, the company will focus on the retail segment and better performance is expected in the coming quarters.

New India Assurance Company is the largest non-life insurance company in India. Headquartered in Mumbai, the company operates in 28 countries.

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First published: August 09, 2024 | 1:32 PM IST