Public sector general insurance major United India Insurance Co Ltd has reported a 24 per cent drop in net profit at ₹77 crore for the fourth quarter ended March 31, 2014, against ₹ 101 crore reported for the comparable previous year quarter.

Milind Karat, Chairman and Managing Director, attributed the fall to the increased commission – both to agents and reinsurer during the quarter. For the quarter under consideration, the company has paid a total commission of ₹143 crore against ₹46 crore.

It has earned premium income of ₹2,678 crore, registering a growth of 10 per cent (₹2,435 crore). .

However, net profit for the full year remained flat at ₹528 crore (₹527 crore). For the year, it reported premium collection of ₹9,709 crore – an accretion of ₹443 crore over the previous year.

Announcing the results at a media conference here, Karat said the growth in premium earned was despite challenging macro economic conditions.

The company also managed to reduce the claims ratio to 82.56 per cent for the year against 84.61 per cent in 2012-13.

However, the company’s underwriting loss went up to ₹1,224 crore from ₹1,193 crore in the year-ago period – “again, despite the Uttarakhand flood losses”.

Reserves for unexpired risk rose nearly three times to ₹688 crore from ₹238 crore last year.

For the current financial year, with sharpened focus on retail, MSME and rural insurance segment, the company hopes to cross ₹11,000 crore premium collection.

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