Capitaline

Results 12-Aug-23

Analysis

New India Assurance Company

Gross premium collection rises 10%, combined ratio at 115.35% in Q1FY24

The New India Assurance Company has posted 94% jump in the net profit to Rs 260.24 crore in the quarter ended June 2023 (Q1FY2024) against net profit of Rs 133.87 crore in Q1FY2023. Gross Direct Premium increased 10% to Rs 11493.31 crore in Q1FY2024.

The company has posted operating loss of Rs 111.53 crore in Q1FY2024 as against operating loss of Rs 120.76 crore in Q1FY2023. The segments such as fire, marine, crop, motor, marine and miscellaneous have posted operating profit, but health segment have recorded operating losses in Q1FY2024.

PBT has increased 97% to Rs 317.81 crore in Q1FY2024 from Rs 160.94 crore in Q1FY2023. The provisions for tax were at Rs 52.14 crore against Rs 30.58 crore in Q1FY2023. There was loss attributable to non-controlling interest of Rs 0.95 crore and loss from associate was at Rs 4.48 crore. The net profit increased 94% to Rs 260.24 crore in Q1FY2024.

Combined Ratio rose on yoy basis to 115.35% in Q1FY2024 from 112.73% in Q1FY2023.

The solvency ratio declined on sequential basis to 1.85% end June 2023.

Book value of the company including fair value change account stood at Rs 167.0 per share and excluding fair value change account stood at Rs 129.5 per share end June 2023.

Commenting on the results Neerja Kapur, Chairman cum Managing Director said " The company has delivered good results for Q1FY24. The Gross Written Premium increased by 9.8% compared to the same quarter last year. The Company continues to focus on improving the business mix by shedding businesses where premiums are inadequate and may impact its bottom line. The company maintained its market leadership in India with a market share of 16.2%.

The premium growth was driven by the Motor line of business which grew by 21.8%. After several years of muted growth, it is heartening to see the segment reporting a healthy premium growth. The combined ratio for the quarter improved to 115.5% compared to 117.2% for the year ended March 2023. The Profit After Tax more than doubled to Rs 260 crore versus Rs 119 crore fir the same quarter last year registering a growth of 118.5%. The solvency ratio remained healthy at 1.85x. The net worth was 41,255 crore and the investment assets were Rs 90152 crore end June 2023.

The underwriting results for the quarter were adversely impacted due to higher claim ratio in the foreign operations. The loss ratios in the domestic health and motor lines of business also remain elevated, but we are confident that the corrective steps being taken currently will reflect in the results in the ensuing periods."

Consolidated Statement of Revenue Accounts: New India Assurance
	2306 (3)	2206 (3)	Var %	2303 (12)	2203 (12)	Var %
1. Premiums earned (Net)	7971.44	7229.53	10	30424.95	29064.70	5
2. Profit on sale of Investments (Net)	1360.79	965.26	41	7493.23	4693.94	60
4. Others	0.00	0.00	-	0.00	0.00	-
Total (A)	9332.23	8194.79	14	37918.18	33758.64	12

1. Claims Incurred (Net)	7649.88	6775.03	13	29010.38	28832.00	1
2. Commission	698.28	530.46	32	2439.89	2313.02	5
3. Operating Expenses related to Insurance Business	1095.60	1010.06	8	4364.55	4069.87	7
4. Premium Deficiency	0.00	0.00	0	0.00	0.00	0
Total Expenses (B)	9443.77	8315.56	14	35814.83	35214.90	2

Operating Profit/ Loss C=(A -B)	-111.53	-120.76	-8	2103.37	-1456.25	LP
(a) Fire Insurance	359.60	204.40	76	1054.93	517.40	104
(b) Marine Insurance	10.46	-31.73	LP	154.98	48.09	222
(c) Health	-805.52	-607.43	33	-2252.21	-4855.72	-
(d) Crop	3.88	-11.10	LP	-178.02	214.29	PL
(e) Motor	196.07	214.58	-9	2518.48	1776.61	42
(f) Miscellaneous Insurance	123.97	110.52	12	805.21	843.07	-4
APPROPRIATIONS
Transfer to Shareholders` Account	-111.53	-120.76	-8	2103.37	-1456.25	LP
Transfer to Other Reserves	0	0		0	0

Consolidated Statement of Profit & Loss Account: New India Assurance
	2306 (3)	2206 (3)	Var %	2303 (12)	2203 (12)	Var %
1. Transfer from policyholders fund	-111.53	-120.76	-8	2103.37	-1456.25	LP
2. Income from investments	567.81	399.73	42	3006.63	2012.09	49
3. Other income	-25.11	2.88	PL	65.16	94.98	-31
Total (A)	431.17	281.85	53	5175.16	650.82	695

4. Provisions (Other than taxation)	12.90	16.65	-23	32.76	21.13	55
5. Other expenses	100.46	104.26	-4	3885.94	452.08	760

Total (B)	113.36	120.91	-6	3918.70	473.21	728

Profit before tax	317.81	160.94	97	1256.46	177.61	607
Provision for taxation:	52.14	30.58	71	195.16	-0.31	PL
PAT	265.67	130.36	104	1061.30	177.92	497
Profit attributable to non-controlling interest	0.95	3.26	-71	1.96	3.86	-49
Share of profit /Loss from associates	-4.48	6.77	PL	-11.33	20.51	PL
Net Profit attributable to owners	260.24	133.87	94	1048.01	194.57	439
EPS (Rs) *	6.3	3.2		6.4	1.2
* on current equity of Rs 824 crore of face value of Rs 5 each, Figures in crore, PL: Profit to Loss, LP: Loss to Profit Source: Capitaline Corporate Database

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