The Finance Ministry has asked public sector general insurance companies to bring down their expense ratio and management expenses to improve profit. The ministry has assessed the performance of four public sector insurance companies recently. Health and motor insurance remain the concern area. Expenses ratio has to be more competitive. Besides, these companies have also been advised to bring down management expenses. Expense ratio, in insurance parlance is the proportion of premium used to pay all the costs of acquiring, writing and servicing insurance and reinsurance. It is to be noted that the Kolkata-based National Insurance Company witnessed a 67% decline in net profit in 2010-11 even when premium income rose by 32%. At the same time, Chennai-based United India Insurance registered a 81% fall in net profit despite a 22% rise in premium. The company registered an 83% fall in operating income.