National Insurance Q2 results: Net profit rises 80% YoY to Rs 81 cr
National Insurance Company Limited, India’s oldest General Insurance Company has declared its Q2 results for the Financial Year 2024-25. There has been a significant turnaround by the Company as it posted a Net Profit of 81 Crore for FY25 with 80% YOY growth. NIC had posted Rs 45 Cr Net Profit during the same period in the last fiscal
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Mumbai, Nov 13: National Insurance Company Limited, India’s oldest General Insurance Company has declared its Q2 results for the Financial Year 2024-25. There has been a significant turnaround by the Company as it posted a Net Profit of 81 Crore for FY25 with 80% YOY growth. NIC had posted Rs 45 Cr Net Profit during the same period in the last fiscal.
The total Gross Premium Income earned by the Company was ₹7,876 Crore up to second quarter of current fiscal, The Gross Premium Income was ₹8,387 Crore in the corresponding quarter of previous fiscal. NIC has been pursuing the objective of profitable growth and the degrowth of 6% is mainly due to a major shifting of renewal to the subsequent quarter.
Health Insurance continued to be the major premium earner comprising about 45% of the total product portfolio whereas Motor Insurance contributed to 29%. There has been reasonable growth in the other segments including Fire Insurance, Marine Insurance and Miscellaneous business contributing to a healthy portfolio distribution for the Company. There has been a significant improvement in controlling the Underwriting losses in the Health Portfolio with the Incurred Claims Ratio improving from 91% in the previous year to 84% (Incurred Claims Ratio is the ratio of claims paid to the premium received) as per Q2 figures in the current fiscal over the same period last year.
National Insurance is committed to its Mission to be the Most Preferred choice of Customers for General Insurers by building Relationships and growing profitably. National Insurance thanks all its stake holders for their continued trust in the 118 years old Institution and endeavors to further enhance the customer experience through various digital Technology initiatives and effectively supporting its valued policy holders through its vast network of 868 offices spread across India and also in Nepal, with a highly skilled workforce of over 7000 employees.
The Expenses of Management Ratio on Net Earned Premium has decreased to 21.75% compared to 22.57% up to 2nd quarter of 2023-24 due to various measures being taken to control the Operating expenses through Digital Transformation and adopting AI Technology.
The Investment Income up to the 2nd quarter for FY25 rose 43% YoY to Rs 2,268 crore, compared to Rs 1,582 crore in the same period last year substantially contributing to the profitability of the overall Q2 financial results.
