The New India Assurance Co. Ltd., the market leader in Non-Life business in India has announced its audited Financial Results for the quarter ended 30th June, 2020.
Performance Overview (stand alone) for the Quarter ended June 2020:
– For the Quarter ended 30thJune 2020, the Gross written premium was 8,368 Cr which was 6.5% higher than the gross written premium for the same quarter last year.
– The Indian business was able to grow despite the impact of pandemic COVID 19, which started in March 2020, and the industry reporting a premium decline during the period.
– The Company reported a Profit before Tax of 343 Crores as against 304 Crores in the same quarter of last year.
– The incurred claims ratio has shown a considerable improvement from 92.77% in Q1 FY 20 to 66.28% in Q1 FY 21.
– The Combined Ratio has improved from 116.28% in Q1 FY 20 to 102.14% in Q1 FY 21.
– Market share in India has improved to 19.11% from 17.38% during the same quarter last year and the company continues to be the market leader.
– Net worth including Fair value change has increased from 25,972 Crores in March 2020 to 29,451 Crores in June 2020.
– Solvency Margin remained healthy at 2.11x
Commenting on the results, Chairman Cum Managing Director Mr. Atul Sahai said, “The Company has reported encouraging results for the quarter despite a challenging macro environment due to COVID19, which has impacted the economy. There has been a significant improvement in the loss ratio, which apart from the loss minimization and corrective pricing actions undertaken, was also due to the reduced incidence of Motor claims. The expenses have increased as the company has made an additional provision of Rs.538 Crores in anticipation of a one-time increase in the liabilities towards pension due to revision of annuity rates. Some large risk losses and -150 Cr CAT losses on account of Nisarga and Amphan affected the performance of the property line of business during the quarter. Investment income was on the lower side during the quarter due to reduced dividend payouts of many companies and payouts getting shifted to the second quarter. Equity markets recovering only towards the second half of the quarter also contributed to lower investment income. Foreign business continued to be profitable during the quarter. The solvency ratio at 2.11X remains higher than the IRDAI mandated control level solvency ratio of 1.5X.
Shares of The New India Assurance Company Ltd was last trading in BSE at Rs.116.45 as compared to the previous close of Rs. 117.3. The total number of shares traded during the day was 23706 in over 598 trades.
The stock hit an intraday high of Rs. 118.4 and intraday low of 115.1. The net turnover during the day was Rs. 2771774.