United India Insurance has posted a net profit of Rs2.04bn ($24.47m) for the second quarter (Q2) of the 2024 fiscal year (FY2024) as against a loss of Rs3.47bn a year ago.
For the quarter that ended on 30 September 2023, the company earned a net premium of Rs41.63bn as against Rs35.17bn in Q2 FY2023.
Net claims paid grew to Rs38.4bn from Rs37.07bn in the previous year’s Q2.
The company’s total operating profit for the quarter was Rs2.07bn compared with a loss of Rs3.72bn in Q2 FY2023.
The company attributed the swing to the profit on the sale/redemption of investments, interest/dividend and rent.
Miscellaneous and marine insurance portfolios generated an operating profit of Rs980m and Rs137.1bn, respectively, compared with a loss of Rs4.91bn and Rs110.9m in the same quarter a year ago.
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The operating profit generated by the fire insurance portfolio declined to Rs953.1m from Rs1.3bn crore in the year-ago period.
Furthermore, the solvency margin of United India Insurance was at 0.38 against the specified 1.5.
Last year, United India Insurance was being considered as a candidate for privatisation by the Indian Government, the Hindu Business Line reported.
Recently, Life Insurance Corp of India (LIC) posted a profit after tax of Rs79.25bn ($951.4m) for Q2 FY2023, a drop of 50% from Rs159.52bn a year ago.
The drop was attributed to reduced income from insurance premiums.
LIC’s net premium income for the quarter that ended on 30 September 2023 plummeted by 18.7% to Rs1.07bn from Rs1.32bn a year earlier.