“Looking ahead, the company remains optimistic about sustaining growth momentum. We continue to register industry-leading growth in October, and early indicators suggest improvement in loss ratios in the second half of the financial year”Girija Subramanian, CMD
Mumbai:New India Assurance, the country’s largest general insurance multinational, has seen its net profit surging by almost 58 per cent year-on –year(y-o-y) to Rs 454 crore in H1FY26.
Retaining its number one position in premium income in the industry, NIA has recorded a 10 per cent year-on –year(Y-o-Y) rise in its gross premium to Rs 10,541 crore in the reporting period and has increased its market share from 12.60 per cent to 13.25 per cent in the industry with 34 players.
Commenting on the results, Girija Subramanian, CMD, NIA, stated the domestic business grew ahead of the industry, leading to an increase in market share from 12.60 per cent to 13.25 per cent. The growth was led by strong performance in the health, property and miscellaneous segments.
Despite an unusually prolonged monsoon season and multiple localised flood events impacting the motor and property portfolios, the company maintained its focus on prudent underwriting and operational efficiency. The impact of these events was well managed through reinsurance and strong investment income, ensuring overall profitability, said Subramanian .
During the second quarter, the company made a one-time provision towards wage revision and associated employee benefit liabilities. This temporarily affected underwriting margins and the combined ratio. However, robust investment income, supported by buoyant equity markets and prudent portfolio management, more than offset the impact, enabling a healthy rise in net profits. Excluding the one-time impact of wage arrears, the operating expenses were lower compared to the corresponding period of the previous year, reflecting ongoing cost optimization efforts, explained NIA chief.
Consequently, NIA reported a 57.7 per cent increase in profit after tax for the half year, with a strong solvency ratio of 1.79x, comfortably above the regulatory requirement.
For Q2 FY26, after absorbing the non-recurring wage revision provision, NIA’s net profit stood at Rs63 crore.
“Looking ahead,” Subramanian added, “the company remains optimistic about sustaining growth momentum. We continue to register industry-leading growth in October, and early indicators suggest improvement in loss ratios in the second half of the financial year.”