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Though claims from the recent cyclone in Andhra Pradesh and floods in Jammu and Kashmir may amount to ₹1,100 crore, the bottomline of public sector general insurer United India Insurance Company will not be impacted “as we have re-insurance protection,” said Milind Kharat, Chairman and Managing Director.
We have received cyclone damage claims in Andhra Pradesh for around ₹440 crore and it is likely to go up to around ₹800 crore. In the case of J&K, the flood damage claims may be around ₹300 crore.
“But, we do not expect any impact on our profits as we will be claiming the amount from our re-insurers,” he said.
According to him, the company is insured against catastrophic losses with re-insurers.
Only claims up to ₹25 crore (per catastrophe) will have to be borne by United India and anything over and above that will be passed on to the re-insurers.
“So, the impact on us will only be to the extent of ₹50 crore,” he said.
For the industry as a whole, the insurance claims from J&K floods will be around ₹1,500 crore and United India’s share in that will be around ₹300 crore. So far, the company has paid around ₹102 crore in claims, Kharat added.
Financial performanceThe company reported a 5 per cent drop in net profit at ₹147 crore for the quarter ended September 30, against ₹153 crore in the year-ago period.
Premium income grew 11 per cent to ₹2,562 crore (₹2,316 crore in the same quarter last year), on the back of robust growth in the motor and health insurance segments.
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