The New India Assurance Company Ltd announces Q2FY21 earnings

The New India Assurance Co. Ltd., the market leader in Non-Life business in India has announced its audited Financial Results for the quarter ended 30th September, 2020.

Performance Overview (stand alone)

- For the Period ended 30th September 2020, the Company reported 8.40% growth in Net Written Premium, despite the impact of pandemic COVID 19 which started in the month of March, the company managed to record growth in H1 FY21.

- The Company reported a Profit before Tax of 697 Crores against a profit of 604 Crores in the same quarter of last year.

- The incurred claims ratio has shown a considerable improvement from 92.81% in H1FY 20 to 75.69% in H1 FY 21.

- The Combined Ratio has improved from 116.62% in H1 FY 20 to 105.75% in HI. FY 21.

- The Company has consolidated its market share to 14.56% (from 14.18% during the corresponding period of Previous Year) and continues to be the market leader by a wide margin.

- Net worth excluding fair value change reserve was at 16,806 Crores as on 30-09-2020.

- Net worth including Fair value change has increased from 25,972 Crores in March 2020 to 30,477 Crores in September 2020.

- Solvency Margin is increased from 2.08x as of Sep 2019 to 2.14x as of Sep 2020, (2.11x as of 31-03-2020)

Commenting on the results, Chairman Cum Managing Director Mr. Atul Sahai said, "Considering the challenging macro environment, the company has delivered excellent results for the quarter and the half year ended 30th Sep 2020. Compared to the Industry the Company has registered much better growth and has also increased its market share to 14.56% as of Sep 2020. The growth has been accompanied by healthy operating metrics with combined ratio declining from 116.62% in H1FY20 to 105.75% in H1FY21. The adjusted combined ratio, (which accounts for Investment Income on Policyholders' Funds), is a better indicator of operating performance, improved from 99.34% to 94.26% during the same period. The PBT for H1FY21 increased by 14.52% to 1040 Cr and this was accompanied with significant improvement in operating cash flows.

It maybe noted that the improvement in PBT is despite CAT losses of about Rs.150 Cr and provisions for doubtful receivables of about 100 Cr in Q1FY21 and investment provisions of about 117 Cr in Q2FY21."

Shares of The New India Assurance Company Ltd was last trading in BSE at Rs.104.65 as compared to the previous close of Rs. 103.25. The total number of shares traded during the day was 10514 in over 421 trades.

The stock hit an intraday high of Rs. 106 and intraday low of 103.8. The net turnover during the day was Rs. 1102588.

Source : Equity Bulls

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