However, total income increased 2.51% year on year (YoY) to Rs 10,134.53 crore in second quarter of FY25.
Profit before tax stood at Rs 140.75 crore in September 2024 quarter as against pre-tax loss of Rs 241.99 crore posted in same quarter last year.
For the quarter ended September 2024, the gross written premium was at Rs 9,701.71 crore, up 2.22% on YoY basis.
Net written premium was at Rs 8,113.87 crore in Q2 of FY25, registering a growth of 2.18% compared to Rs 7940.65 crore posted in same period a year ago.
On half year basis, the company’s net profit spiked 335.57% to Rs 306.38 crore on 4.07% rise in total income to Rs 19,999.82 crore in H1 FY25 over H1 FY24.
Commenting on the Q2 result, Girija Subramanian, CMD said, "While the premium growth in the first half has been muted, it was a conscious decision to focus on lines with better profitability which led to the company letting go of a few large renewals where premiums were inadequate. It gives me immense satisfaction that the operating metrics have improved, with loss ratio as well as combined ratio being lower than the same period last year with profit after tax showing a 5x increase.
The loss ratio of Health line of business has witnessed some improvement but the loss ratio in Motor line of business has increased due to lack of price increase in the Motor Third Party line of business. Net catastrophic losses in H1 FY25 were around Rs 248 crore. Solvency ratio at 1.81 times remains comfortably above the IRDAI mandated control level solvency margin. The competitive intensity in traditional lines remains high and the company will focus on other segments and channels to drive growth. The company expects the profitability trend to improve in the coming quarters."
The New India Assurance Company is the largest non-life insurance company in India headquartered at Mumbai and operates in 28 countries.