IGI Insurance Company Limited (IGIIL) announced its 1QCY14 results , boasting a 69 percent year-on-year upsurge in its bottom line. This overwhelming growth in bottom line was driven primarily by virtue of a significant drop in claims expenses.
Although the growth in net premiums remained insufficient, reduction in claims expenses led the ratio of net claims to net premium to drive down to 54 percent from 77 percent in the corresponding period last year. Thanks to improvement in claims, the underwriting result shot up by nearly three times during the quarter.
On the other hand, despite having a quality equity portfolio, investment income plunged by 77 percent in the quarter under review. However, the reasons for this decline in investment income are unknown at this stage and can only be ascertained once detailed financials are made available.
Going onwards, in order to expand its insurance business, IGI Insurance is feathering nest to team up with Bancassurance channel via its entry into life insurance business. Recall that IGI Insurance has recently acquired a controlling stake in American Life Insurance Company (ALICO). With this,that has marked a phenomenal growth in yester years. Let’s see how the management is able to capitalise on this!