United India Insurance Company (UIIC) has reported a nearly flat net profit of Rs.527.60 crore for 2013-14, against Rs.527.33 crore in the previous fiscal, due to higher provisioning for wage revision and retirement benefits. The company set aside Rs.328 crore for gratuity and other retirement benefits and Rs.101 crore for wage revision.
However, its gross premium income went up by about 5 per cent to Rs.9,708.93 crore, while net premium income stood at Rs.8,291.39 crore, up about 11 per cent.
Milind Kharat, Chairman-cum-Managing Director, said the company managed to post better performance and retain profit levels despite challenging market conditions. Despite absorbing losses of about Rs.824 crore on account of Uttarakhand floods, the company reduced the claims ratio to 82.56 per cent from 84.61 per cent. Combined ratio (a measure of insurer profitability) stood at 116.10 per cent against 116.46 per cent.
The net worth crossed Rs.5000-crore mark and stood at Rs.5,361 crore (Rs.4,953 crore). Market value of its total investments rose to Rs 21,545 crore by the end of March 31, 2014 from Rs 19,950 crore as on March 31, 2013.However, its underwriting losses went up marginally to Rs.1,224.15 crore from Rs.1,193.67 crore on account of rise in management expenses and commissions.The board has recommended a dividend of 20 per cent for 2013-14. The company has planned to achieve a premium income of Rs.11,000 crore for 2014-15.