The New India Assurance Company (NIACL) Q4 99/00 earnings summary

Executive summary

• Gross direct premium reached Rs. 3,306.53 crore, up 9.57% YoY; net premium rose 13.28% to Rs. 2,477.45 crore.

• Underwriting shifted to a Rs. 177.98 crore loss from a Rs. 13.18 crore profit; investment income supported Rs. 435.32 crore PBT and Rs. 287.29 crore PAT.

Financial highlights

• PBT was Rs. 435.32 crore versus Rs. 564.69 crore; PAT was Rs. 287.29 crore versus Rs. 375.00 crore in FY99.

• Net premium was Rs. 2,477.45 crore; net incurred claims rose to Rs. 1,906.25 crore from Rs. 1,561.61 crore.

• Investment income, including investment-sale gains, was Rs. 752.74 crore versus Rs. 636.29 crore; yield on mean funds was 12.93%.

• Total assets increased to Rs. 7,664.71 crore from Rs. 6,727.72 crore; India investment portfolio was Rs. 6,192.94 crore.

Outlook and guidance

• FY01 domestic gross premium target: Rs. 3,265 crore, implying targeted growth of 9.5%.

• FY01 foreign premium targets: Rs. 373.50 crore gross and Rs. 335 crore net, with 5.5% targeted accretion.

• Strategy emphasized personal-line products, need-based package covers, engineering risks and marketing for new infrastructure projects amid intensified competition.