State-run general insurer National Insurance Company has posted an 80 per cent year-on-year increase in its net profit to ₹81 crore for the second quarter of this fiscal.
The Kolkata-based insurer had reported a net profit of ₹45 crore for the second quarter of last fiscal. The company, in a release, said there has been a “significant turnaround” as its net profit grew 80 per cent y-o-y in Q2FY25.
The company recorded a gross premium income of ₹7,876 crore in the second quarter of current fiscal, while the same was ₹8,387 crore in the corresponding quarter of previous fiscal. “NIC has been pursuing the objective of profitable growth, and the degrowth of 6 per cent (in gross premium income) is mainly due to a major shifting of renewal to the subsequent quarter,” according to the release.
The India’s oldest general insurance company said health insurance continued to be the major premium earner comprising about 45 per cent of the total product portfolio whereas motor insurance contributed to 29 per cent. “There has been reasonable growth in the other segments including fire insurance, marine insurance and miscellaneous business, contributing to a healthy portfolio distribution for the company. There has been a significant improvement in controlling the underwriting losses in the health portfolio with the Incurred Claims Ratio improving from 91 per cent in the previous year to 84 per cent,” it added.
The Management Expense Ratio on net earned premium decreased to 21.75 per cent compared to 22.57 per cent in the second quarter of FY24 due to various measures being taken to control the operating expenses through digital transformation and adopting AI technology.
