Higher costs cut New India Assurance profit by 5% to Rs 715 crore in Q3

New Delhi: The New India Assurance Company Ltd on Friday reported a 4.5 per cent fall in net profit to Rs 715 crore for the quarter ended in December 2023 due to underwriting losses.

The company had a net profit of Rs 749 crore in the same quarter a year ago.

The general insurer's total income rose to Rs 10,630 crore in the third quarter of 2023-24 from Rs 9,746 crore in the same period a year ago, New India Assurance said in a regulatory filing.

Gross premium written during the reported quarter rose to Rs 10,665 crore in the quarter as against Rs 9,243 crore in the year-ago quarter.

However, underwriting losses widened to Rs 1,390 crore from Rs 1,100 crore. Underwriting losses reflect that premiums collected by an insurer were lower than expenses incurred and claims paid out.

Total expenses of the company also increased to Rs 10,337 crore in the quarter from Rs 8,962 crore in the corresponding period of the previous fiscal.