New India doubles its net profit to Rs 354 cr in Q4FY24

 State-owned New India Assurance (NIA) has recorded a doubled net profit of Rs 354 crore in the Jan-Mar quarter of FY24, with improved asset quality. The board of NIA, has also declared a dividend of over 40 per cent at Rs 2.06 per equity share of Rs 5 for FY24.

The country’s largest multinational general insurer, which has been following a strategy of boosting profitability by off-taking losses, has recorded a higher premium of Rs 10,625 crore in the reporting quarter as compared to Rs 10,434 crore in the year-ago period.

 

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The investment income of the company has gone up by almost 19 percent to Rs 2663 crore in the last quarter of FY 24 over Rs 2243 crore in the corresponding quarter of FY23. The solvency margin of the company also fallen to 1.81 in FY 24 from 1.87 in FY 23.

Commenting on the results, Titus Francis, the executive director said, “NIA  has delivered excellent results in FY24 despite the adverse impact of several catastrophic claims during the year. It recorded a 128 percent growth in its net profit in Q4. Even on individual lines, Motor's third-party loss ratio saw an increase as there was no premium increase during the year. This was marginally offset by the decline in the loss ratio of the 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. ‘’

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The net worth of the insurance company increased by 15 percent to Rs. 44,704 crore in FY24. The company’s premium in FY 24 grew by 8.3 percent to Rs 41,996 crore and profit after tax increased by 7 percent to Rs.1,129 crore during year.

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