The country's largest general insurance company, New India Assurance posted a net profit of Rs 517 crore in the third quarter of the current financial year backing on increase in investment income and upward revision in premium rates.
New India Assurance reported loss of Rs 177 crore in the corresponding period of the previous year.
The company also reported growth in premium income of 18.8 per cent to cross Rs 8500 crore in the first three quarters of the current financial year.
The state-run insurance company also reduced its management expenses to 24 per cent from 26 per cent in the third quarter. It also reduced incurred claims from 93 per cent to 89 per cent. The investment income of New India Assurance grew from Rs 1709 crore to Rs 2055 crore.
Mr. G. Srinivasan, CMD, New India Assurance said, "In the case of fire and engineering insurance, there has been an increase in premium rates. The market is moving towards risk-based pricing though it has not reached optimum levels yet. In the case of retail health insurance, we recently requested the regulator for a revision in price in this segment".
Mr. Srinivasan added that the company is targeting a premium collection of Rs 12000 crore for the current financial year.