Despite higher expenses and claims, New India Assurance, the largest general insurance multinational in the country , has seen its net profit rising by 61 per cent year-on-year (Y-o-Y) to Rs 558 crore in Q4FY26.
The multiline general insurer had recorded a gross premium of Rs 11,619 crore, the highest in the Indian general insurance industry, in Q4FY 26 as compared to Rs 11,433 crore in the corresponding quarter of FY25.
“ We have an excellent financial results during FY 26. The profit after tax improved by 40 per cent for the year and 61 per cent for the 4th quarter. The Indian business grew faster than the industry, and the company’s market share increased from 12.56 per cent to 12.74 per cent during the year, compared to the same period last year,’’ said Girija Subramanian, CMD, GIC Re.
However, the company’s underwriting losses spurted by 61 per cent y-o-y to Rs 1836 crore in the reporting quarter even as its incurred claims have surged 8.7 per cent y-o-y to Rs 9,555 crore.
Its incurred claim ratio was 95.85 per cent in Q4FY26 as compared to 94.43 per cent in Q4FY25.
“The incurred claim ratio was impacted due to the higher loss ratio in the Motor Third Party
segment, where the long-awaited premium revision has not yet happened. The unfortunate
loss in the aviation segment also contributed to the higher incurred claim ratio in the current
year compared to the previous year,’’ said Subramanian.
The Health segment witnessed an improvement in loss ratio, while the Motor segment performance was impacted by the intense competitive environment and lack of premium revision in the Motor TP segment, highlighted Subramanian.
The impact of wage revision and revision in family pension to the tune of Rs.3525 crore, during the year, has pushed the combined ratio of the company to 118.34 per cent in the last quarter of the FY26 from 111.46 per cent in the corresponding quarter of FY 25.
Excluding the wage revision, the insurer’s combined ratio would be 113.98 per cent for the reporting quarter.
Investment income of the company has gone by 7.4 per cent Y-O-Y to Rs 2513 crore in the last quarter of FY 26.
“The company was able to absorb the full impact of wage revision and revision in family
pension amounting to Rs.3525 Cr during the year. The entire impact of revision in the family
pension from 15 per cent to 30 per cent as notified by the government and amounting to Rs.597 Cr was absorbed during the fourth quarter. The adverse impact was partially offset by better investment returns during the year. The combined ratio for the year, adjusted for the wage revision-related impact was 116.67 per cent compared to 115.34 per cent in the previous year,’’ explained Subramanian.