crore during the third quarter, down from Rs 40 crore in the same period of the previous year.
"This is mainly because surrender profits have come down, which is putting pressure on profitability in the short-term but is positive for the long term," Ghosh said.
The company has not booked the surplus arising from non-participating business, which was Rs 74 crore, as the item is added only during second and fourth quarter earnings.
While Reliance General Insurance's gross written premium was up 21 per cent to Rs 599 crore, its net profit fell to Rs 11 crore from Rs 16 crore during the period under review.
"This is due to losses of Rs 16 crore in the declined risk motor pool. We contributed around Rs 16 crore to the 'third part motor declined risk pool', an industry wide corpus mandated by the regulator to third-party motor insurance claims, which hurt the general insurance business profit," he said.
Reliance General Insurance, which is scouting for a foreign partner to pick up a stake in the company, is yet to finalise the process.