New India Assurance Company Ltd

About

New India Assurance Company Ltd is India's largest non-life insurance company. It is promoted by the Government of India (GoI) holding ~86% stake.

It was established by Sir Dorabji Tata in 1919 and was nationalised in 1973. Post nationalisation, it became one of 4 subsidiaries of General Insurance Company of India (GIC) but gained autonomy after GIC became a re-insurance company in 1999.[1]

Key Points

Ratios (FY21)
Incurred Claims Ratio - 84%
Commission Ratio - 9%
Expense Ratio - 20%[1]
Adj. Combined Ratio - 97%
Solvency Ratio - 213%[2]
Net Retention Ratio - 81.4%[3]

Read More
  • Market Cap 23,847 Cr.
  • Current Price 145
  • High / Low 197 / 114
  • Stock P/E 23.8
  • Book Value 214
  • Dividend Yield 0.00 %
  • ROCE 8.76 %
  • ROE 6.97 %
  • Face Value 5.00

Pros

  • Company is almost debt free.
  • Stock is trading at 0.68 times its book value

Cons

  • Though the company is reporting repeated profits, it is not paying out dividend
  • Company has a low return on equity of 3.91% for last 3 years.

Peer comparison

Sector: Insurance Industry: Finance & Investments

Loading peers table ...

Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
6,879 7,175 6,935 7,616 8,406 7,562 6,923 7,980 8,593 9,196 8,116 9,682
6,999 7,566 6,618 7,010 7,805 7,482 6,561 7,288 7,927 8,958 8,001 9,579
Operating Profit -120 -391 317 606 601 81 362 691 666 238 115 103
OPM % -2% -5% 5% 8% 7% 1% 5% 9% 8% 3% 1% 1%
Other Income -24 59 5 5 -2 47 2 15 -1 87 2 33
Interest 0 0 0 0 0 0 0 0 0 0 0 0
Depreciation 0 0 0 0 0 0 0 0 0 0 0 0
Profit before tax -144 -332 321 611 599 128 364 706 665 324 117 136
Tax % 22% 19% 9% 12% 17% 11% 17% 21% 21% 26% 14% 2%
Net Profit -111 -266 280 557 487 118 317 565 525 233 98 146
EPS in Rs -0.67 -1.61 1.70 3.38 2.96 0.72 1.93 3.43 3.19 1.41 0.60 0.88

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
9,599 10,994 13,354 15,215 20,234 19,798 27,660 28,343 31,087 35,587
12,297 14,403 17,107 18,195 20,692 24,590 27,944 29,406 31,648 34,465
Operating Profit -2,698 -3,409 -3,753 -2,980 -458 -4,793 -284 -1,063 -561 1,122
OPM % -28% -31% -28% -20% -2% -24% -1% -4% -2% 3%
Other Income 3,826 4,392 5,487 4,063 1,704 7,601 1,050 2,816 2,724 121
Interest 3 2 3 4 6 12 0 0 0 0
Depreciation 43 38 28 34 47 74 90 93 103 0
Profit before tax 1,082 943 1,703 1,045 1,194 2,722 677 1,659 2,060 1,243
Tax % 16% 15% 19% 11% 14% 20% 11% 13% 21%
Net Profit 917 830 1,416 961 1,046 2,190 605 1,442 1,640 1,002
EPS in Rs 22.92 20.75 35.40 24.03 26.15 13.29 3.67 8.75 9.95 6.08
Dividend Payout % 19% 27% 21% 26% 30% 33% 41% 0% 0%
Compounded Sales Growth
10 Years: %
5 Years: 15%
3 Years: 16%
TTM: 15%
Compounded Profit Growth
10 Years: %
5 Years: 11%
3 Years: 70%
TTM: -33%
Stock Price CAGR
10 Years: %
5 Years: %
3 Years: -10%
1 Year: 23%
Return on Equity
10 Years: %
5 Years: 3%
3 Years: 4%
Last Year: 7%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Sep 2021
200 200 200 200 200 412 824 824 824 824
Reserves 15,285 17,387 20,035 19,426 20,484 24,228 23,303 20,721 24,732 34,513
Borrowings 0 0 0 0 0 0 0 0 0 0
31,159 36,791 42,726 44,780 49,473 51,094 56,426 55,707 66,914 59,657
Total Liabilities 46,644 54,379 62,961 64,407 70,157 75,734 80,553 77,252 92,470 94,994
212 223 302 350 399 560 561 558 547 573
CWIP 0 20 0 15 57 33 45 25 16 0
Investments 31,566 35,711 45,365 44,972 51,907 56,024 59,801 52,029 67,025 73,059
14,866 18,424 17,293 19,069 17,795 19,117 20,147 24,640 24,883 21,362
Total Assets 46,644 54,379 62,961 64,407 70,157 75,734 80,553 77,252 92,470 94,994

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
847 -1,605 -124 425 -1,334 -967 777
-1,345 741 1,340 -494 2,337 2,825 -334
-208 -366 -307 1,125 -476 -300 77
Net Cash Flow -706 -1,229 910 1,056 527 1,558 520

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 0 0 0 0 0 0 0 0 0
Inventory Days
Days Payable
Cash Conversion Cycle 0 0 0 0 0 0 0 0 0
Working Capital Days -544 -568 -549 -525 -447 -506 -421 -486 -501
ROCE % -1% 1% -2% 3% 2% -1% 7% 9%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
85.44 85.44 85.44 85.44 85.44 85.44 85.44 85.44 85.44 85.44 85.44 85.44
0.10 0.09 0.14 0.14 0.11 0.11 0.10 0.04 0.04 0.03 0.02 0.43
13.36 13.50 13.49 13.48 13.40 13.42 13.31 13.30 13.29 13.19 13.07 12.81
1.10 0.98 0.94 0.95 1.06 1.04 1.16 1.23 1.23 1.34 1.48 1.32

Documents