Reliance Capital’s arm Reliance General Insurance, reported a net profit of Rs 59 crore for the third quarter ended December, higher by 23%, compared with Rs 48 crore reported in the previous year period.
During the April-December period, the company’s gross written premium rose 13% year-on-year to Rs 8,208 crore as against Rs 7,294 crore in the corresponding period of previous year.
The profit before tax for the nine month period ended December has risen 6% to Rs 334 crore, compared with Rs 314 crore in the same period previous year.
The company said it took a hit of Rs 41.7 crore for unutilized MAT credit in the current year to opt for a lower tax regime. This will accrue significant bottom line benefits in the subsequent periods.
Reliance General Insurance has grown its investments assets by 20% to Rs 16,581 crore during the April-December period. The same stood at Rs 13,861 crore April-December period of previous fiscal.
The company is operating at 6.6 times the investment AUM, which it says is one of the best in the industry, showing a strong cash accrual.
For the past many years, the company said it is reinvesting the annual bottom-line in growing the business and maintaining solvency over the regulatory limits.
“The latest solvency position as on December 2022 stands at 1.59 times indicating sufficient buffer over its policyholder liabilities There is no challenge to the company to grow at the past growth rates due to strong internal accruals and existing capital,” Reliance General Insurance said in a release.
The company added that it ranks best amongst large players in the industry in terms of its faster claims settlement.
According to the regulator Irdai’s annual report for the year 2021-22, the company has settled over 23 lakh claims of which 98.65% claims were settled in less than 3 months’ time.
The company said it is investing heavily in new digital alliances, retail health distribution, MSME business and new product development to tap emerging growth opportunities in the sector.
Reliance General Insurance has a robust network of more than 75,000 intermediaries and 131 branch offices manned by over 7,000 people across India for offering its products and services.