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.
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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