Public sector insurer National Insurance Company released its financials for the financial year 2010-2011. Despite a 32% rise in premium earnings, the insurer has witnessed a 67% fall in its net profits and a 73% fall in its operating profits in FY 2010-11.
The dip in the insurer’s net profits was mainly attributed to the decline in operating income from health insurance, third-party motor cover; own damage motor insurance cover as well as housing insurance cover. The loss registered in the operating income is Rs 445 crore which is six times that in the previous year.
The massive decline in National Insurance Company’s net profits was cushioned to some extent by the 37% increase in its investment income to Rs 378 crores.
National Insurance Company is headquartered in Kolkata and has a network of about 1000 offices, manned by more than 16,000 skilled personnel, spread over the length and breadth of the country covering remote rural areas, townships, and metropolitan cities.
