Page 11 - The Insurance Times November 2024

fall of 8,000 crore, with its solvency Non-Life Insurance Premi-
margin standing at a negative 0.49%, Attention Subscribers
far below the regulatory minimum of ums Dip 6.5% in Septem- Please renew your Subscription of The
1.5%, has identified several key assets ber Due to Crop and Auto
to address the gap, according to Segment Slump Insurance Times Journal to receive
people familiar with the matter. copy of the journal uninterruptedly.
Non-life insurers have reported a 6.53
Among these are its stake in Agricul- per cent year-on-year (YoY) drop in You can now pay by GPAY, Phonepe,
ture Insurance Company, a 20% stake premiums in September, owing to Paytm, Amazon, ICICI Pay, BHIM UPI
in India International Insurance underperformance of state-owned
Singapore valued at about $500 million general insurers, slowdown in auto
(about 4,000 crore) and a joint venture sales impacting motor insurance seg-
in Kenya, they said, adding that though ment, and weak performance in the
the insurer has identified these assets, crop insurance segment.
it is yet to start the process and seek Data released by the General Insurance
necessary approvals to proceed with Council said that in September, non-life
any sales. insurers, which include general insurers,
While the IRDAI has granted the com- standalone health insurers, specialised
pany forbearance and it has no immedi- PSU insurers, got Rs 27,551 crore as
ate pressure to liquidate assets, the in- premiums, down 6.53 per cent YoY.
surer is hopeful that the transition to a General insurers collected Rs
risk-based capital framework, expected 22,985.40 crore in premiums in Sep-
in the coming few quarters, would pro- tember, marking a 3 per cent decline.
vide relief by improving the valuation of While New India Assurance reported a
its assets, according to the people. 9 per cent YoY increase in premiums,
state-owned United India Insurance
"National Insurance needs 8,000 crore experienced an 18 per cent drop, Na-
to bring its solvency margin back to
tional Insurance saw a 32 per cent
1.5%," said one of the persons, who did decline, and Oriental Insurance's pre-
not wish to be identified. miums remained flat.

The insurer believes that the risk-based Among major private general insurers,
capital framework could unlock 6,000 ICICI Lombard experienced modest
crore in fair value changes (base case), premium growth of 3.6 per cent YoY,
a substantial revaluation of its assets. Bajaj Allianz General reported a nearly Sashi Publications Easy Payment
"Currently, some assets on its books 8 per cent YoY decline, and HDFC Ergo Modes :-
are valued at just 500 crore but could saw a dip of 5.41 per cent. i) UPI ID: SASHIBOOKS@KOTAK
be revalued at much more," the per- However, standalone health insurers
son said. (SAHI) reported a robust growth of 26 ii) GPAY: 9830171022@okbizaxis
National Insurance Company's market per cent YoY in premiums in September, iii) PAYTM: 9830171022@paytm
share has slipped to 5.11% as of Sep- with Star Health and Allied Insurance iv) NEFT: Current A/C
tember, down from 5.81% in the pre- reporting an 18 per cent YoY growth. 402120110000327 of 'SASHI
vious year. While the regulatory for- "The decline in premiums in Septem- PUBLICATIONS PRIVATE
bearance does not restrict the insurer ber is mainly driven by the under-per- LIMITED, Bank of India, VVK
from expanding its business, it has been formance of the state-owned insurers Road Branch., Kolkata, India,
barred from writing surety bonds until (ex. New India Assurance) and select IFSC Code : BKID0004021
its solvency improves. However, the private players, impact of auto sales v) Credit Card:
company's gross written premium in slowdown on motor insurance, and www.sashipublications.com
the first half of this financial year fell weak performance of insurers in the For any query please call
5.84% year-on-year to 7,864 crore, crop insurance segment," said Saurabh 9073791022/9883398055
much lower than the industry's overall Bhalerao, Head of BFSI Research at
growth of 8.58%. CareEdge Ratings. www.sashipublications.com

10 November 2024 The Insurance Times