The New India Assurance Company (NIACL) Q4 98/99 earnings summary

Executive summary

• FY1998-99 gross direct premiums rose 12.24% YoY to Rs.3,017.64 crore; net premiums reached Rs.2,186.92 crore.

• Net profit after tax fell to Rs.375.00 crore from Rs.470.94 crore; underwriting surplus declined to Rs.13.18 crore from Rs.57.13 crore.

• Assets grew to Rs.6,727.72 crore from Rs.6,071.67 crore; the year included an A.M. Best “A (Excellent)” rating and 80 years of operations.

Financial highlights

• Profit before tax was Rs.564.69 crore versus Rs.620.66 crore; tax provision rose to Rs.189.69 crore from Rs.149.72 crore.

• Interest, dividends and rents were Rs.589.41 crore versus Rs.573.90 crore; total investment income including investment-sale profit reached Rs.636.29 crore, up 6.35% YoY.

• Net investment-sale profit of Rs.46.88 crore was transferred directly to General Reserve, compared with Rs.24.41 crore in FY1997-98.

• Total assets increased by Rs.656.05 crore; the India investment portfolio was Rs.5,451.83 crore, up 10.4% YoY.

Outlook and guidance

• FY1999-2000 domestic gross premium target: Rs.3,110 crore, with a targeted 14% growth rate.

• Overseas gross premium target: Rs.330 crore for FY1999-2000, targeting 5.5% growth.

• Plans included opening Regional Offices in Visakhapatnam, Ludhiana and Surat, with greater emphasis on personal insurance lines and tailored covers.