The New India Assurance Company (NIACL) Q1 24/25 earnings summary

Executive summary

• Profit after tax for the quarter ended June 2024 was ₹21,697 lakhs (₹217 Cr), down from ₹26,023 lakhs in Q1 FY24, reflecting a year-over-year decline.

• Gross written premium grew 3.74% year-over-year to ₹11,78,792 lakhs, with muted growth due to portfolio rationalization favoring more profitable lines.

• Net worth increased from ₹44,704 Cr in March 2024 to ₹47,703 Cr in June 2024.

• The company is focusing on the retail segment and expects improved performance in upcoming quarters.

Financial highlights

• Gross premiums written: ₹11,78,792 lakhs, up from ₹11,36,249 lakhs in Q1 FY24.

• Net premium written: ₹9,57,690 lakhs, up from ₹9,18,196 lakhs year-over-year.

• Premium earned (net): ₹8,50,277 lakhs, up from ₹7,91,900 lakhs year-over-year.

• Income from investments (net): ₹1,31,391 lakhs, slightly down from ₹1,35,544 lakhs year-over-year.

• Profit after tax: ₹21,697 lakhs, down from ₹26,023 lakhs in Q1 FY24.

• Underwriting loss widened to ₹1,58,090 lakhs from ₹1,44,052 lakhs year-over-year.

Outlook and guidance

• Management expects improved performance in the health segment as seasonal factors abate and is focusing on retail business for better profitability.

• Anticipates better results in coming quarters due to portfolio mix optimization.