General Insurance Company The New India Assurance Company announced Q2FY25 results The Holding Company has made estimated provisions based on management assessment amounting to Rs 3,806.80 and Rs 7,242.26 lakh towards wage revision during the quarter and Q2FY25 respectively and the cumulative provision up to the Q2FY25 is Rs 32,529.93 lakh. The net balances due to/due from in respect of re-insurance activities of the Holding Company amounting to Rs 71,886.86 lakh (excluding Terrorism Pool of Rs 3,24,437,10 lakh and Nuclear Pool of Rs 23,767.62 lakh due from General Insurance Corporation of India (GIC Re) and Rs 24,737.74 due from Agricultural Insurance Company of India Ltd.) are subject to confirmation/reconciliation. As against the Reinsurance recoverable balance of Rs 71,886.86 lakh as of Q2FY25, the Holding Company has maintained a provision of Rs 20,758.03 lakh up to Q2FY25, towards doubtful debts as a prudent measure. During the Q2FY25, the Holding Company has written off (net debit) non-moving reinsurance balances of Rs 258.84 lakh. In respect of the Coinsurance business, the balances with various Co-insurers represent a net receivable of Rs 98,253.80 lakh and net payable of Rs 66,136.43 lakh, which includes balances relating to PMFBY amounting to Rs 13,030.97 lakh (Net). Holding Company has maintained a provision of Rs 34,075.19 lakh against a net receivable balance of Rs 982,53.80 lakh and a net payable balance of Rs 66,136.43 lakh as of Q2FY25. Old balances other than policyholder dues comprising credit balances of Rs 12,390.19 lakh and debit balances of Rs 4,894.45 lakh as of Q2FY25. Provision for Tax Rs 9,233 lakh (Current Tax) includes Rs 373.18 lakh relating to foreign taxes of foreign branches. Fixed Deposits amounting to Rs 872,022 lakh in the Banks including those having maturity of more than three months amounting to Rs 741,768 lakh as of Q2FY25 as 'Cash and Cash Equivalent' in the Receipt and Payment Accounts. Premium received from policyholders, including advance receipts of Rs 22,15,311 lakh, compared to Rs 22,54,265 lakh during Q2FY24. Girija Subramanian, CMD, The New India Assurance Company, said: "While the premium growth in the first half has been muted, it was a conscious decision to focus on lines with better profitability which led to the company letting go of a few large renewals where premiums were inadequate. It gives me immense satisfaction that the operating metrics have improved, with the loss ratio as well as the combined ratio being lower than in the same period last year with profit after tax showing a 5x increase. The loss ratio of the Health line of business has witnessed some improvement but the loss ratio in the Motor line of business increased due to the lack of price increase in the Motor Third Party line of business. Net catastrophic losses in H1FY25 were Rs 248 crore. The solvency ratio at 1.81 times remains comfortably above the IRDAl-mandated control level solvency margin. The competitive intensity in traditional lines remains high and the company will focus on other segments and channels to drive growth. The company expects the profitability trend to improve in the coming quarters. " Result PDF