New India Assurance slides 3% as Q3 profit falls 6% YoY

NEW DELHI – Shares of New India Assurance company fell on Monday, declining 3 per cent in early trade as the general insurance player reported a 5.8 per cent on-year drop in net profit at Rs 491 crore for the quarter ended December 2021.

The non-life insurer had posted a net profit of Rs 521 crore in the same quarter a year ago.

The scrip dropped to a low of Rs 132.65 as against Rs 136.90 at the previous close on the National Stock Exchange.

The company reported a total income of Rs 8860.62 crore during the period ended December 31, 2021, as compared to Rs 9041.74 crores during the period ended September 30, 2021, reports said.

On a year-on-year basis, the total income clocked in at Rs 8,860.62 crore as against Rs 7,982.74 crore.

The company reported earnings per share of Rs 3.05 for the quarter under review as against Rs 3.19 in the third quarter of the previous financial year.

New India Assurance, the market leader in the non-life insurance space, had reported a net profit of Rs 1,605 crore in 2020-21.

Its state-owned peers National Insurance Company, Oriental Insurance and United India Insurance Company are all loss-making insurers. In the last two years, the government has infused more than Rs 12,500 crore in these three companies.