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Public sector general insurer New India Assurance recorded a profit after tax of Rs 1008 crore in FY17, a 22% increase. The insurer collected global premium of Rs 22,279 crore in the previous financial year, showing a 21.7% increase over FY16.
G Srinivasan, Chairman and Managing Director of New India Assurance, said that crop insurance has been a growth driver for the industry as a whole. He added that he expects the listing of the insurer to be completed in the next six to eight months as part of the government's plans to list public general insurance companies including New India and General Insurance Corporation. New India has already identified bankers for this process.
“While we are still making underwriting losses, we expect to break even on the underwriting front in the next three years,” Srinivasan said. The insurer’s combined ratio stood at 118% at the end of FY17.
Its net worth including fair value of investments was Rs 34,716 crore, while the market value of investments stood at Rs 53,009 crore.
New India launched their premier mediclaim policy in FY17. In a media statement, the company said that they have sold about 250 policies for premium of Rs 1 crore. Their solvency ratio was at 227% as against regulatory requirement of 150%. The company recruited 10,000 agents in 2016-17. About 150 micro offices were opened in small centres to encourage insurance inclusion. For FY18, they plan to open 250 micro offices.
New India collected a premium of Rs 1046 crore under Pradhan Mantri Fasal Bima Yojana (crop insurance initaitive). Srinivasan said that this will increase since the government has announced an extended coverage under this crop insurance scheme.
However, loss ratios have risen to 100% in this space, said Srinivasan. The insurer has set a target of Rs 26,000 crore for this financial year including both India and other countries. Further, to expand their reach, New India will tie up with three large banks in the coming weeks.
