Chennai-based state-owned non-life insurer, United India Insurance (UII), reported net profit by of Rs 306.27 crore for the first nine month period of the current fiscal, ending 31 December, 2017.
The company had reported a net loss of Rs 416.77 crore in the year-ago period. The insurer has made a turnaround to post profit (PBT) of Rs 333.99 crore as on Dec 2017 as against loss of Rs 416.78 crore in the corresponding period of the previous fiscal.
Gross premium of the company grew to Rs 12,042 crore in the period from Rs 11,394 crore a year ago. Combined ratio of the company also improved to 125.04 per cent from 120.80 per cent a year ago. Investment income also increased to Rs 2,573.67 crore from Rs 1,612 crore a year ago. However, the company’s solvency ratio continues to remain unchanged at 1.08 times, which is much below the regulatory requirement of 1.5
Commenting on it, MN Sarma, Chairman and Managing Director of United India Insurance said,” For the solvency calculation, trailing 12 months is taken, which means, as on 31st Dec includes the last quarter of 2016-17 and three quarters of 2017-18. In the last quarter of 2016-17, we booked the huge IBNR (incurred but not reported) and its effect continues on solvency calculation until Dec, 2017.”
“In the 31st March 2018 calculation it will not come as the full 12 months get completed of 2017-18 by 31st March. Hence as at 31st March'18 our solvency will improve quite substantially,” he added.