New India Assurance Company Ltd's Q2FY19 standalone net profit declines 56% yoy to Rs328.64cr

The company’s standalone NII stood at Rs5,207.76cr, up 10.88% yoy and 0.83% qoq.

Nov 12, 2018 10:11 IST India Infoline Research Team

New India Assurance Company Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Net Premium Income 5,207.76 10.9
Net Profit (adjusted) 328.64 [56.1]

The New India Assurance Company Ltd's gross written premium remained flattish on yoy basis at Rs6,505cr in Q2FY19. The net earned premium income for Q2FY19 came in at Rs5,207.8cr, up 10.9% yoy. The income from investments under policyholders fund also remained flat at Rs1,029.5cr, on yoy basis. The net commission expense came in at ~Rs527.7cr, up 34.6% yoy. The total incurred claims (claims paid and change in outstanding claims) stood at Rs5,130cr, up 24.9% yoy. The income from investments under shareholder's account increased by 13.8% yoy to Rs572.7cr in Q2FY19. The company's net profit came in at Rs328.6cr in Q2FY19, down 56.1% yoy.

• Quarterly performance of the company was adversely impacted due to catastrophic losses in India and abroad markets.
• Solvency ratio stood at 2.52x as on September 30, 2018, as against 2.66x as on June 30, 2018.
• Adjusted combined ratio for Q2FY19 declined 104.06% as against 91.45% in Q2FY18.
• Quarterly yield on investments (with unrealized gains) for Q2FY19 was 2.54% as against 2.75% in Q2FY18.
• The break-up of segmental performance for major segments was:
o Fire: Operating loss of Rs149.4cr in Q2FY19 against an operating profit of Rs15.9cr in Q2FY18
o Motor: Operating profit declined 29% yoy to Rs395.8cr in Q2FY19
o Health: Operating loss stood at Rs379.8cr in Q2FY19 as against Rs449.3cr in Q2FY18
o Crop: Operating loss recorded at Rs83.6cr in Q2FY19 vs a profit of Rs94.5cr in Q2FY18.
• Market share of the company stands at 14.4% (H1FY19) and it continues to be the market leader.





Technical View:

New India Assurance Company Ltd is currently trading at Rs. 229.50, up by 3.15 points or 1.39% from its previous closing of Rs. 226.35 on the BSE.
The scrip opened at Rs. 226 and has touched a high and low of Rs. 238 and Rs. 226 respectively. So far 61,247 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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