Everest Insurance reports almost four fold profit growth in Q3

ShareSansar, April 30:

Everest Insurance Company Limited has reported almost four times profit growth by the end the third quarter following a series of reforms initiated by the Insurance Board to bail out the company in deep financial crisis only a few months back.

Publishing the unaudited financial report for the third quarter today, the non-life company has stated that its net profit has risen to Rs 3.76 crore, up from a loss of Rs 1.33 crore.

The 383 percent net profit growth by the end of the third quarter is, however, attributable to low claim settlement – just Rs 8.08 crore as compared to Rs 13.23 crore in the corresponding quarter of the last fiscal year 2069/70.

Likewise, Everest Insurance also paid much lesser agent commission or just Rs 60.71 lakh down from 1.65 crore in the corresponding quarter.

Its core income has decreased from Rs 48.53 crore to Rs 33.25 crore.

Only in February the regulator had handed over the management of Everest Insurance through the special Annual General Meeting after carrying out reforms in the company.

The AGM had elected a new Board of Directors, effectively replacing the team delegated by the Insurance Board that has been running the troubled company since October.

In October the regulator had taken over the management of Everest Insurance and suspended the then BoD as well as chairman and CEO for flouting insurance regulations as well as their failure to run the company properly.

At that time, there were more than 3000 unsettled claims, which the IB team has now brought down by 50 percent.

According to the IB sources, the regulator is now confident that the company can run smoothly without its direct involvement.