Universal Sompo General Insurance Company on Tuesday reported a 165 per cent rise in net income to ₹46.21 crore for the June quarter over the same period last year, mainly due to lower combined loss ratios and investment gains.
The company attributed the increase in net income to better than expected overall performance, especially the gross direct premium income, which grew over 16.6 per cent to ₹418.62 crore during the reporting quarter.
Another reason for the better bottomline growth is an improvement in the loss ratio by 258 bps to 78 compared to 80.58 in the same period previous year.
“This was mainly due to an improvement in health, personal accident, marine and motor cover loss ratios,” the company said.
The combined operating ratio improved by 716 bps to 101.41 from 108.57 a year ago.
Besides, the company also witnessed 25.34 per cent rise in investment income to ₹56.38 crore, compared to ₹44.98 crore in the year-ago period.
Shareholder networth increased by 4.59 per cent in the reporting quarter, while the solvency ratio stands at 2.21 times.
Health remains the key growth driver for the company. Apart from introducing a pandemic specific health products on the group platform during the quarter, it has also begun to promote Arogya Sanjeevani, the standardised health product formulated by the regulator, the insurer said.
Universal Sompo General Insurance is a four-way joint venture between Allahabad Bank, Indian Overseas Bank, Karnataka Bank, Dabur Investment Corp and Sompo Japan Nipponkoa Insurance Inc.
Established in 2007, the company is headquartered in Mumbai.