Challenges Pose Opportunities For Expansion

"The growth in premiums was primarily driven by the Motor line of business, which experienced a remarkable 21.8 per cent increase. This is particularly encouraging as this segment had previously shown limited growth."

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Ms. Neerja Kapur Chairman-cum-Managing Director The New India Assurance Co. Ltd.

Can you shed some light on your Q1FY24 results? What factors have contributed to the company's performance?

The company has achieved impressive results for Q1FY24. The Gross Written Premium increased by 9.8 per cent compared to the same quarter last year. The Company is committed to enhancing the business mix by divesting from ventures with inadequate premiums that could negatively affect its bottom line. In India, the company has maintained its position as a market leader with a market share of 16.2 per cent.

The growth in premiums was primarily driven by the Motor line of business, which experienced a remarkable 21.8 per cent increase. This is particularly encouraging as this segment had previously shown limited growth.

During the quarter, the combined ratio improved to 115.5 per cent compared to 117.2 per cent for the fiscal year ending on March 31, 2023. The Profit After Tax more than doubled to ₹260 crore, a significant growth of 118.5 per cent compared to the same quarter last year. The solvency ratio remained strong at 1.85x. As of June 30, 2023, the net worth stood at ₹41,255 crore, with investment assets totalling ₹90,152 crore.

However, the underwriting results for the quarter were negatively impacted by a higher claim ratio in foreign operations. Additionally, the loss ratios in the domestic health and motor lines of business remained elevated. Nevertheless, we are confident that the corrective measures currently being implemented will yield positive results in the upcoming periods.