The New India Assurance Company, which made its debut in the markets earlier this week (a lukewarm debut below the issue price) has seen its profits grow 3X for this quarter ending September compared to the same period last year, after reducing underwriting losses. The company's share price rallied briefly on the news.
The claims ratio needs to be below 100% for an insurer to start seeing profits. The company said that the company's incurred claims ratio fell 800 bps to 87.45%. Price increases, management said, helped the company bring down its loss ratios, and the firm has increased prices by 25% in its retail health business.