Capitaline

Results 23-May-24

Analysis

New India Assurance Company

Combined ratio rises to 121.5% in Q4FY2024

The New India Assurance Company has posted 146% surge in the net profit to 310.88 crore in the quarter ended March 2024 (Q4FY2024) against net profit of Rs 126.12 crore in Q4FY2023. Gross Direct Premium increased 2% to Rs 10625.15 crore in Q4FY2024.

The company has posted operating profit of Rs 13.07 crore in Q4FY2024 as against operating profit of Rs 19.77 crore in Q4FY2023. The segments such as fire, marine, crop, motor and miscellaneous have posted operating profit, while health segment have recorded operating loss in Q4FY2024.

PBT jumped 213% to Rs 469.86 crore in Q4FY2024 compared with Rs 150.12 crore in Q4FY2023. The company has created tax provisions of Rs 162.08 crore against provisions of Rs 6.19 crore in Q4FY2023. There was loss attributable to non-controlling interest of Rs 2.02 crore and gain from associate was at Rs 5.12 crore. The net profit came in at Rs 310.88 crore in Q4FY2024.

Combined Ratio rose to 121.48% in Q4FY2024 from 118.31% in Q4FY2023, while rose from 116.54% in Q3FY2024.

The solvency ratio rose on sequential basis to 1.81% end March 2024.

Book value of the company including fair value change account stood at Rs 171.7 per share and excluding fair value change account stood at Rs 132.6 per share end March 2024.

Commenting on the results, Executive Director Mr Titus Francis said, "New India Assurance" has delivered excellent results in FY24 despite adverse impact of several catastrophic claims during the year. The gross written premium grew by 8.3% during the year to Rs 41996 crore and profit after tax increased by 7% during the year to Rs 1129 crore. The PAT for the fourth quarter more than doubled as it increased by 128.4% to Rs 354 crore. The solvency ratio remained healthy at 1.81x and the company continues to be the market leader in the Indian general insurance industry.

The impact of catastrophic claims on the net incurred claims during the year was - Rs 794 crore. During the 4th quarter, the results were adversely impacted by an impairment charge of - Rs 110 crore on the Nigerian operations due to devaluation of Naira. The net worth increased to Rs 44704 crore compared to Rs 38,675 crore in FY23. Even on individual lines, Motor third party loss ratio saw an increase as there was no premium increase during the year. This was marginally offset by decline in the loss ratio of Motor Own Damage segment where price corrections were factored. The health segment loss ratio remains elevated and corrective steps are being taken. Other lines did reasonably well. The Indian general insurance industry has a long runway for growth, and the company will continue its strategy to pursue growth with profitability."

Consolidated Statement of Revenue Accounts: New India Assurance
	2403 (3)	2303 (3)	Var %	2403 (12)	2303 (12)	Var %
1. Premiums earned (Net)	8983.27	7937.38	13	34186.62	30424.95	12
2. Profit on sale of Investments (Net)	1892.20	1610.56	17	6583.15	7493.24	-12
4. Others	0.00	0.00	-	0.00	0.00	-
Total (A)	10875.47	9547.94	14	40769.77	37918.19	8

1. Claims Incurred (Net)	8551.37	7772.97	10	33213.77	29010.38	14
2. Commission	769.95	669.11	15	3033.09	2439.89	24
3. Operating Expenses related to Insurance Business	1541.09	1086.09	42	5130.19	4265.27	20
4. Premium Deficiency	0.00	0.00	0	0.00	0.00	0
Total Expenses (B)	10862.42	9528.18	14	41377.06	35715.55	16

Operating Profit/ Loss C=(A -B)	13.06	19.77	-34	-607.27	2202.66	PL
(a) Fire Insurance	320.59	-128.91	LP	577.32	1064.88	-46
(b) Marine Insurance	60.77	84.07	-28	230.80	156.89	47
(c) Health	-1047.28	-578.87	81	-3438.09	-2202.41	56
(d) Crop	27.86	-46.75	LP	166.08	-177.96	LP
(e) Motor	294.06	360.30	-18	1119.22	2549.94	-56
(f) Miscellaneous Insurance	357.07	329.94	8	737.39	811.31	-9
APPROPRIATIONS
Transfer to Shareholders` Account	13.07	19.77	-34	-607.27	2202.66	-
Transfer to Other Reserves	0	0		0	0

Consolidated Statement of Profit & Loss Account: New India Assurance
	2403 (3)	2303 (3)	Var %	2403 (12)	2303 (12)	Var %
1. Transfer from policyholders fund	13.07	19.77	-34	-607.27	2202.66	PL
2. Income from investments	810.40	634.42	28	2748.72	3006.63	-9
3. Other income	35.56	40.73	-13	15.11	65.16	-77
Total (A)	859.03	694.92	24	2156.56	5274.45	-59

4. Provisions (Other than taxation)	38.78	-4.77	PL	64.18	32.76	96
5. Other expenses	350.39	549.57	-36	680.26	3985.22	-83

Total (B)	389.17	544.80	-29	744.44	4017.98	-81

Profit before tax	469.86	150.12	213	1412.12	1256.47	12
Provision for taxation:	162.08	6.19	2518	320.99	195.16	64
PAT	307.78	143.93	114	1091.13	1061.31	3
Profit attributable to non-controlling interest	2.02	-2.40	PL	3.95	1.96	102
Share of profit /Loss from associates	5.12	-20.21	LP	29.31	-11.33	PL
Net Profit attributable to owners	310.88	126.12	146	1116.49	1048.02	7
EPS (Rs) *	7.5	3.1		6.8	6.4
* 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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