The recent financial performance of United India Insurance Company Ltd signifies a remarkable turnaround story, marking a significant shift from a loss of Rs 347.44 crore in the corresponding period of the previous year to a net profit of Rs 204.30 crore in the second quarter of FY24. This transformation was driven by a notable increase in net premium earnings, reaching Rs 4,163.80 crore compared to Rs 3,517.97 crore in Q2FY23.
During this period, United India witnessed a rise in net claims paid, reaching Rs 3,845.95 crore, reflecting an active response to obligations. The company's total operating profit for this quarter reached Rs 207.05 crore, a significant turnaround from a loss of Rs 372.16 crore, notably boosted by profits from the sale/redemption of investments and other income sources.
Operating profits from miscellaneous and marine insurance portfolios turned positive, marking a substantial improvement from previous periods. However, the operating profit from the fire insurance portfolio experienced a slight decline compared to the corresponding period in the previous year.
Yet, despite these positive strides, concerns over solvency margins remain, with United India reporting a solvency margin of 0.38, significantly below the stipulated 1.5.
Conversely, National Insurance Company Ltd and The Oriental Insurance Company Ltd showcased positive trends, with National Insurance reporting a net profit of Rs 44.82 crore for the first half of the current fiscal, a significant turnaround from a previous net loss. Similarly, The Oriental Insurance Company Ltd managed to reduce its first-half loss to Rs 42.17 crore from a considerably higher net loss in the previous fiscal.
However, The New India Assurance Company Ltd, the industry leader among public sector listed general insurers, faced a challenging period, reporting a net loss of Rs 199.99 crore for Q2FY24, a stark contrast to the net profit of Rs 260.23 crore in Q2FY23. Similarly, for the half-year ended September 30, The New India's net profit declined to Rs 60.24 crore from Rs 151.93 crore in H1FY23, highlighting a downturn in its financial performance.
This landscape showcases a diverse trajectory within the public sector general insurance space, with varying outcomes across different insurers, highlighting the challenges and successes in this industry segment.
(With Agency Inputs)