On the back of growth in premium collection and reduction in losses, public sector general insurers have reported a rise in their net profits for the financial year 2012-13.
Insurers, including the New India Assurance, United India Insurance and Oriental Insurance, have seen an increase in Profit After Tax (PAT) for FY’13.
New India Assurance has posted a PAT of Rs 843.6 crores for FY’13 as against Rs 179.3 crores in FY’12. The company’s total premium collection stood at Rs 10,038 crores in India in FY’13, a growth of 18% over the last financial year. The company’s foreign operations, spread over 22 countries, generated a premium of 2,467 crores, up 17.6% over the previous financial year.
United India Insurance has posted a growth of 36% in PAT at Rs 527 crores for FY’13 as against Rs 387 crores in FY’12. Company’s premium collection stood at Rs 9,266 crores in FY’13, up 13% over the last fiscal.
Similarly, Oriental Insurance almost doubled its PAT in FY’13, at Rs 794.7 crores.
For most public sector general insurers, underwriting losses have come down significantly due to the dismantling of the third party motor pool for commercial vehicles. This was replaced by the declined risk pool from first April 2012.
