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Last Updated : Aug 09, 2019 06:05 PM IST | Source: Moneycontrol.com

New India Assurance Q1 net profit down 56.2% as underwriting losses rocket

The non-life insurer saw a 4.6 percent YoY growth in net earned premium at Rs 5,406.05 crore in Q1.

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The country's largest general insurer New India Assurance posted a 56.2 percent year-on-year (YoY) drop in standalone net profit for the June quarter at Rs 278.11 crore. This was on account of a 53.8 percent YoY increase in its underwriting losses to Rs 1,097.78 crore in Q1.

The non-life insurer saw a 4.6 percent YoY growth in net earned premium at Rs 5,406.05 crore in Q1. The combined ratio rose 116.28 percent compared to 111.03 percent, during the period.

A combined ratio below 100 percent indicates that the insurer is making underwriting profit.

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All business segments, include fire, marine, motor, health and crop, posted an underwriting loss. This meant that the claims paid exceeded the premiums collected. A host of insurers faced high claims from Cyclone Fani that hit Odisha in April/May 2019.

Crop insurance posted an underwriting loss of Rs 5.86 crore in Q1FY20 compared to an underwriting profit of Rs 43.98 crore in Q1FY19. Motor insurance saw a 192.1 percent rise in underwriting loss to Rs 323.34 crore in the June quarter.

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First Published on Aug 9, 2019 06:05 pm
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