Summary

  • The New India Assurance Company Ltd founded by Sir Dorabji Tata in 1919
  • Company's Indian operations span across all territories through 2214 offices, including 473 DOs, 587 BOs, 25 DABs and 1086 Micro Offices.
  • Company's 15249 employees and 1,02,804 agents as on 31st March 2021
  • The company has over 250 products and operates in 28 countries.

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Company Overview

The New India Assurance Company Ltd (NSE:NIACL) founded by Sir Dorabji Tata in 1919, a Multinational General Insurance Company, today operates in 28 countries and headquartered at Mumbai, India.The company's global business crossed Rs. 31573 crores in March 2021.

New India Assurance Co has been market leaders in India in Non-Life business for more than 50 years.The company's Indian business crossed Rs.28548 crores in March 2021. New India Assurance Co is rated B++ Stable FSR Rating and bbb+ Stable ICR Outlook byAM BEST Company. New India Assurance Co has been rated AAA/Stable by CRISIL since 2014 , indicating that the Company has the highest degree of Financial Strength to honour its Policyholder's obligations.1

The company's Indian operations span across all territories through 2214 offices, including 473 DOs, 587 BOs, 25 DABs and 1086 Micro Offices.  New India Assurance Co has 15249 employees and 1,02,804 agents as on 31st March 2021, providing insurance services to its customers.   New India Assurance Co has over 250 products.

New India's overseas operations have a long tradition, dating back to the inception of the Company itself.  In 1920, within one year of the incorporation of the Company, New India opened an office in London in the United Kingdom.  Today it operates in 28 countries through direct branches, agency operations, subsidiary companies, Representative office and Associates. In addition, New India has also equity participation in Insurance companies in Singapore, Kenya, Saudi Arabia. The company's London Branch has been in operations for the past 100 years and has a desk at Lloyds. The company's operations in many countries like Japan, Mauritius etc are more than 60 years old. New India has a subsidiary company in Trinidad & Tobago at Port of Spain with branches in St. Lucia, Dominica, St.Maarten, Guyana and Anguilla and another in Nigeria viz. Prestige Assurance Plc, based out of Lagos. New India has a Representative Office in Yangon in Myanmar. New India has equity participation in WAFA Insurance (SICCI) in Saudi Arabia, India International Insurance Pte. Ltd in Singapore and Kenindia Assurance Co Ltd, Nairobi, Kenya.

New India Assurance Co is the co-promoters of Agricultural Insurance Company of India & GIC Housing Finance Ltd. New India Assurance Co has also co promoted a common TPA in the Health Insurance support services jointly, with other Government owned insurers - Health Insurance TPA of India Limited.

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Industry Overview

In a COVID-19 pandemic impacted financial year, the IRDAI had taken several measures with a major focus on driving industry wide uniformity in policy wording and coverages of some standard products which will help in increasing penetration of insurance products. Last year, IRDAI had announced the standardization of health insurance product named Arogya Sanjeevani Policy, w.e.f April 1, 2020. This year, IRDAI took further measures aimed at standardizing retail products. Insurers launched a standard cover for home insurance (Bharat Griha Raksha), micro (Sookshma Udyam Suraksha) and small businesses (Laghu Udyam Suraksha) and Standard Personal Saral Accident Insurance from April 1, 2021. Further, IRDAI has also encouraged insurers to launch a standard Vector Borne Disease Health Insurance Policy (Mashak Rakshak) from April 1, 2021. During the COVID-19 outbreak, IRDAI undertook various initiatives and measures aimed at protecting the interests of the Policyholders. Apart from asking insurers to launch standard COVID-specific health insurance products (Corona Kavach and Corona Rakshak), insurers were advised to expeditiously handle health insurance claims especially those pertaining to COVID-19. The timeline for payment of health and motor third party renewal premiums was also extended. Effective August 1, 2020, IRDAI has also withdrawn the long-term motor insurance package policies – 3 year OD + 3 year TP coverage for new cars and 5 year OD + 5 year TP coverage for new two wheelers. The Union Budget FY 2021- 22 proposed to increase the Foreign Direct Investments (FDI) limit in insurance sector from 49% to 74%. Over the medium to long term, this is expected to enable insurers to access foreign capital, which in turn may augment industry growth by increasing penetration.2

In FY21, non-life insurers (comprising general insurers, standalone health insurers and specialized insurers) recorded a 5.19% growth in gross direct premiums. Motor insurance accounted for 34.1% of the general insurance premiums written in FY21. Post-Covid rising demand for personal mobility space is leading to a shift in vehicle ownership patterns and may create an opportunity for motor insurers. Health insurance witnessed 13.3% growth in GDPI in FY21, while fire insurance and liability insurance observed 28.1% and 16.4% growth respectively in the same period.

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Financial Highlights

Gross direct premium in India has increased from Rs. 26813 crores in 2019-20 to Rs. 28548 Crores in 2020-21 recording a growth of 6.47% during 2020-21. The growth is observed in all geographical segments as well as all classes of business.

The Company’s foreign operations saw a gross written premium turnover in rupee equivalent of ₹ 3888.83 crores and a Net Premium of Rs 3070.24 crores in 2020-21. The foreign operations recorded an underwriting profit of 75.69 crores and Profit After Tax was Rs. 196.21 crores.

June 2021 Results

New India Assur Consolidated June 2021 Net Sales at Rs 225.85 crore, down 52.39% Y-o-Y 3

August 12, 2021; Reported Consolidated quarterly numbers for New India Assurance Company are:

Net Sales at Rs 225.85 crore in June 2021 down 52.39% from Rs. 474.42 crore in June 2020.

Quarterly Net Profit at Rs. 98.18 crore in June 2021 down 69.07% from Rs. 317.43 crore in June 2020.

EBITDA stands at Rs. 117.00 crore in June 2021 down 67.83% from Rs. 363.73 crore in June 2020.

New India Assur EPS has decreased to Rs. 0.60 in June 2021 from Rs. 1.93 in June 2020.

References

  1. ^ https://www.newindia.co.in/portal/aboutUs/Overview
  2. ^ https://www.newindia.co.in/cms/371bf34d-5e56-4804-aea9-e0a5e2226937/NIA_ANNUAL_REPORT_2020-21.pdf?guest=true
  3. ^ https://www.moneycontrol.com/news/business/earnings/new-india-assur-consolidated-june-2021-net-sales-at-rs-225-85-crore-down-52-39-y-o-y-7323021.html
Tags: IN:NIACL
Created by Asif Farooqui on 2021/11/15 17:55
     

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