“The company has assessed the overall impact of this pandemic on its business and financials, including valuation of assets, policy liabilities and solvency for the period ended December 3I, 2020”, it said.
Based on that, it has kept additional reserves to the tune of Rs 70 crore due to the pandemic, which is over and above the policy level liabilities calculated based on prescribed IRDAI regulations. “The company will continue to closely monitor any future developments relating to covid19 which may have any impact on its business and financial position”, it further said.
In the first nine months of the current financial year (9MFY21), it earned a net profit of Rs 920 crore, up 4 per cent year on year and its net worth increased 19 per cent to Rs 10,130 crore. Assets under management of the insurer increased 28 per cent to Rs 2.09 trillion in the same period. However, the value of new business was down 5 per cent in 9MFY21 at Rs 1,560 crore, compared to Rs 1,650 crore in 9MFY20. New business margin of the insurer stood at 20.8 per cent in the same period.
The 13th month persistency ratio of the insurer, based on premium, stood at 86.17 per cent and the 61st month persistency stood at 61.69 per cent. Shares of the insurer were trading 1.92 per cent lower at Rs 862.40 at the BSE.