Finance1 min read

New India slips into red with 1,267 cr loss in Q2

By · Published by Everything Blog

In short

The insurer faced heavy underwriting losses in its property segment after severe flood claims emerged from Gujarat, northern India, and the northeast. Although overall gross written premiums still managed single-digit growth, the expansion was curtailed by a steep drop in property insurance rates. Chairman and Managing Director Lavanya R Mundayur noted that these combined factors created an exceptionally challenging operating environment across the sector.

Key points

  • Natural catastrophe claims and multiple large-risk events severely undermined quarterly u…: Natural catastrophe claims and multiple large-risk events severely undermined quarterly underwriting performance.
  • Falling rates within the property insurance market continue to act as a headwind against…: Falling rates within the property insurance market continue to act as a headwind against stronger revenue momentum.
  • Leadership views the current downturn as reflective of broader systemic challenges hittin…: Leadership views the current downturn as reflective of broader systemic challenges hitting the general insurance industry.

Sources checked by our analysis pipeline: 1

Gross written premium rose 5.14% year-on-year to ₹11,083 crore from ₹10,541 crore, the state-owned general insurer said in its earnings release. "This second quarter has been one of the most challenging quarters for the company in recent times, more so while succeeding another equally challenging one for the entire industry," said Lavanya R Mundayur, chairman and managing director. "This quarter, GWP grew by only 5.14%, primarily due to the steep decline in property rates. The property segment suffered significant underwriting losses as well, due to multiple large-risk losses and flood claims in Gujarat, north India and northeast India."

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