United India posts Rs.528 cr net

April 25, 2014 10:54 pm | Updated May 21, 2016 01:21 pm IST - CHENNAI:

Milind Kharat (right), Chairman and Managing Director, United India Insurance Co Ltd and Asha Nair, Director and General Manager, at a press conference, in Chennai on Friday. Photo: Bijoy Ghosh

Milind Kharat (right), Chairman and Managing Director, United India Insurance Co Ltd and Asha Nair, Director and General Manager, at a press conference, in Chennai on Friday. Photo: Bijoy Ghosh

United India Insurance Company (UIIC) has reported a nearly flat net profit of Rs.527.60 crore for 2013-14, against Rs.527.33 crore in the previous fiscal, due to higher provisioning for wage revision and retirement benefits. The company set aside Rs.328 crore for gratuity and other retirement benefits and Rs.101 crore for wage revision.

However, its gross premium income went up by about 5 per cent to Rs.9,708.93 crore, while net premium income stood at Rs.8,291.39 crore, up about 11 per cent.

Milind Kharat, Chairman-cum-Managing Director, said the company managed to post better performance and retain profit levels despite challenging market conditions. Despite absorbing losses of about Rs.824 crore on account of Uttarakhand floods, the company reduced the claims ratio to 82.56 per cent from 84.61 per cent. Combined ratio (a measure of insurer profitability) stood at 116.10 per cent against 116.46 per cent.

The net worth crossed Rs.5000-crore mark and stood at Rs.5,361 crore (Rs.4,953 crore). Market value of its total investments rose to Rs 21,545 crore by the end of March 31, 2014 from Rs 19,950 crore as on March 31, 2013.

However, its underwriting losses went up marginally to Rs.1,224.15 crore from Rs.1,193.67 crore on account of rise in management expenses and commissions.

The board has recommended a dividend of 20 per cent for 2013-14. The company has planned to achieve a premium income of Rs.11,000 crore for 2014-15.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.