The company has reported a significant increase in its net profit for the quarter ending December 31, 2024. The net profit rose by 67.9% to Rs 724.4 crore, compared to Rs 431.5 crore in the same period last year. This increase is despite a minor decline of 0.3% in the company’s gross premium, which stood at Rs 6,214 crore in the December 2024 quarter, down from Rs 6,230 crore in the same period a year ago.
The company’s return on average equity (ROAE) has also improved significantly, rising to 21.5% in Q3 FY25 from 15.3% in Q3 FY24. This indicates that the company is generating higher returns on its equity. Additionally, the combined ratio, which reflects the company’s claims and expenses as a percentage of its premium earnings, fell to 102.7% in the December 2024 quarter, down from 103.6% in the same period a year ago.
A lower combined ratio is a positive sign for an insurance company, as it suggests that it is earning more from its premiums compared to the claims it is paying out and other expenses it is incurring. This improved profitability is likely to be driven by the company’s strong underwriting performance and efficient claims handling. Overall, the company’s quarterly results indicate a strong financial performance, with significant growth in net profit and improved operating efficiency.