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The New India Assurance Company CMD Girija Subramanian
| Photo Credit: Arrangement
State-owned general insurer The New India Assurance Company reported 2% decline in standalone net profit for the March quarter to ₹346.63 crore from the ₹353.93 crore a year earlier.
The lower net profit came even as gross written premium (GWP) increased more than 8% to ₹11,432.57 crore (₹10,571.88 crore) while total expenses reduced less than 2% to ₹10,449.01 crore (₹10,639.87 crore).
For 2024-25, GWP increased 3.86% year on year to a new high of ₹43,618 crore (₹41,996 crore). The company retained the market leader tag with a market share of 12.6%, NIACL said in a release on the results for the fiscal.
Net profit for the fiscal, however, declined more than 12% to ₹988 crore (₹1,129 crore) due to provisions made towards legacy non-moving balances, it said.
The all-time high GWP came despite challenging market conditions. “Despite the rise in GWP, the company has managed to reduce underwriting losses by 11% driven by lower claim ratio and significant reduction in operating costs. The combined ratio has improved from 119.88% in FY24 to 116.78% in FY25. It could have been greater if not for elevated loss ratio in the motor third party segment, where the much-needed premium revision has not happened yet,” CMD Girija Subramanian said.
The company made a provision of ₹802 crore towards legacy non-moving reinsurance balances, which impacted the profit after tax and return on equity. “Our focus in FY26 will remain on further enhancing profitability, with a strong emphasis on launching innovative products aimed at the retail and MSME segments,” she said.
The solvency ratio improved to 1.91 (1.81). The balance sheet remains robust, with assets under management of more than ₹98,000 crore, the company said.
₹1.80 dividend
The company has declared a final dividend of ₹1.80 per equity share (of face value of ₹5 each).
Published – May 20, 2025 09:46 pm IST
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