In a significant turnaround, the National Insurance Company Ltd, a public sector entity, has reported a net profit of Rs 44.82 crore in the first half of the fiscal year 2023-24. This is in stark contrast to the same period last year when the company declared a net loss of Rs 1,768.46 crore.
The company closed the first half of the current fiscal with a gross premium income of Rs 8,668.34 crore, compared to Rs 8,129.74 crore in the corresponding period of the previous year. The net profit for the first half was reported at Rs 44.82 crore, in contrast to a net loss of Rs 1,768.46 crore in the same period last year.
During this period, National Insurance achieved a net investment income of Rs 1,581.55 crore, up from Rs 1,277.53 crore in the previous fiscal. The company also reduced its underwriting loss to Rs 1,708.94 crore from Rs 2,827.68 crore, despite an increase in total claims to Rs 6,767.95 crore from Rs 5,913.71 crore.
Although the incurred claims ratio increased to 93.28% from 91.31%, the combined ratio decreased to 121.96 from 143.32 by the end of the first half of the fiscal year.
However, the solvency ratio of the insurer as of September 30, 2023, was reported at 0.89, falling short of the stipulated 1.50.
(With Agency Inputs)
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