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Results
12-Nov-22
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Analysis
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New India Assurance Company
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Higher employee cost hits bottom-line
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The New
India Assurance Company has posted 65% decline in the net profit to Rs 51.28 crore
in the quarter ended September 2022 (Q2FY2023). Gross Direct Premium declined 3%
to Rs 8952.36 crore in Q2FY2023.
The company has posted operating profit
of Rs 1527.94 crore in Q2FY2023 as against net loss of Rs 437.72 crore in Q2FY2022.
The segments such as motor, fire, marine and miscellaneous have posted
operating profit, while segments such as health and crop have recorded
operating losses in Q2FY2023. However, the PBT has dipped 72% to Rs 37.53 crore
as the company has created substantial amount of provisions for employee
benefit.
Combined Ratio rose on sequential
basis to 121.02% from 112.73% in Q1FY2023, while improved from 126.47% in Q2FY2022.
The solvency ratio rose to 1.77x end September
2022.
Book
value
of the company including fair value change account stood at Rs 159.6 per share
and excluding fair value change account stood at Rs 121.1 per share end September
2022.
Commenting on the results, Neerja Kapur, CMD of
the company said, “The gross written premium for the half year ended September 2022sawagrowthof1.90%
compared to the same period last year. The muted growth is primarily due to the
previous year recording significant revenues from the cropline of business and some
government business, which was not there this year.
Another development during the quarter was the notification of
wage revision for the employees for the years 2017 to 2022. The company made a provision
of about Rs 2600 crore pertaining to additional liabilities on account of wage arrears
and AS15 additional liabilities during the quarter. Additional capital gains realized
in favourable market conditions partially cushioned this adverse impact.
The ICR for the half year
ended September 2022 improved from 100.90% to 96.94%, and the combined ratio improved
from 120.65% to 117.06%. The solvency ratio improved from 1.66 at the beginning
of this financial year to 1.77.”
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Statement of Revenue
Accounts: New India Assurance
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2209 (3)
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2109 (3)
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Var %
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2209 (6)
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2109 (6)
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Var %
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2203 (12)
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2103 (12)
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Var %
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1. Premiums earned
(Net)
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7349.55
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7518.54
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-2
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14579.08
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14333.63
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2
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29064.70
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26376.33
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10
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2. Profit on sale of
Investments (Net)
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3027.66
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1523.20
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99
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3992.92
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2431.78
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64
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4693.94
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4335.78
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8
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4. Others
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0.00
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0.00
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-
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0.00
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0.00
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-
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0.00
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73.31
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-
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Total (A)
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10377.21
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9041.74
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15
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18572.00
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16765.41
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11
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33758.64
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30785.42
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10
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1. Claims Incurred
(Net)
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7307.14
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8112.08
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-10
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14082.18
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14414.24
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-2
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28832.00
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22156.76
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30
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2. Commission
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616.32
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535.74
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15
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1146.78
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1039.05
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10
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2313.02
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2483.86
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-7
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3. Operating Expenses
related to Insurance Business
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925.81
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831.64
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11
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1935.87
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1916.27
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1
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4069.87
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5427.23
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-25
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4. Premium Deficiency
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0.00
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0.00
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0
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0.00
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0.00
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0
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0.00
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0.00
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0
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Total Expenses (B)
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8849.28
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9479.47
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-7
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17164.84
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17369.57
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-1
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35214.90
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30067.86
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17
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Operating Profit/ Loss
C=(A -B)
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1527.94
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-437.72
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LP
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1407.17
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-604.15
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LP
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-1456.25
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717.57
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PL
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(a) Fire Insurance
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372.75
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-176.57
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LP
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577.15
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75.88
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661
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517.40
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201.93
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156
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(b) Marine Insurance
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49.03
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22.64
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117
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17.30
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54.62
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-68
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48.09
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50.28
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-4
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(c) Health
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-262.22
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-1157.51
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-
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-869.65
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-2713.79
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-68
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-4855.72
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-1469.72
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230
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(d) Crop
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-111.96
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10.32
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PL
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-123.06
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31.08
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PL
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214.29
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-296.74
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LP
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(e) Motor
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1398.50
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702.64
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99
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1613.08
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1488.16
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8
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1776.61
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1960.06
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-9
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(f) Miscellaneous
Insurance
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81.84
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160.76
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-49
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192.36
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459.90
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-58
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843.07
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271.75
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210
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APPROPRIATIONS
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Transfer to
Shareholders` Account
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1527.94
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-437.72
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-
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1407.17
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-604.15
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-
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-1456.25
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717.57
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-
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Transfer to Other
Reserves
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0
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0
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0
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0
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0
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0
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Statement of Profit
& Loss Account: New India Assurance
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2209 (3)
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2109 (3)
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Var %
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2209 (6)
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2109 (6)
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Var %
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2203 (12)
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2103 (12)
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Var %
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1. Transfer from
policyholders fund
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1527.94
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-437.72
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LP
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1407.17
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-604.15
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LP
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-1456.25
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717.57
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PL
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2. Income from
investments
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1212.30
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640.45
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89
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1612.03
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1032.73
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56
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2012.09
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1979.35
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2
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3. Other income
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4.47
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32.89
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-86
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7.34
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34.62
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-79
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94.98
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29.40
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223
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Total (A)
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2744.71
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235.62
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1065
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3026.54
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463.20
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553
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650.82
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2726.32
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-76
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4. Provisions (Other
than taxation)
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10.70
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-5.64
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PL
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27.34
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1.27
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2053
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21.13
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128.62
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-84
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5. Other expenses
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2696.48
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105.05
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2467
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2800.74
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208.72
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1242
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452.08
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537.94
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-16
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Total (B)
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2707.18
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99.41
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2623
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2828.08
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209.99
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1247
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473.21
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666.56
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-29
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Profit before tax
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37.53
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136.21
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-72
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198.46
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253.21
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-22
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177.61
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2059.76
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-91
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Provision for
taxation:
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-4.40
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2.78
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LP
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26.18
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19.41
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35
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-0.31
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432.01
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LP
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PAT
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41.93
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133.43
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-69
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172.28
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233.80
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-26
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177.92
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1627.75
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-89
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Profit attributable to
non-controlling interest
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2.19
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0.23
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852
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5.45
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4.48
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22
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3.86
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4.74
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-19
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Share of profit /Loss
from associates
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11.54
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12.59
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-8
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18.31
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14.65
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25
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20.51
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17.46
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17
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Net Profit
attributable to owners
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51.28
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145.79
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-65
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185.14
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243.97
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-24
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194.57
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1640.47
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-88
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EPS (Rs) *
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1.2
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3.5
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2.2
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3.0
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1.2
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10.0
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* on current equity of
Rs 824 crore of face value of Rs 5 each, Figures in crore, Source: Capitaline
Corporate Database
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