The general insurance industry, saddled with the huge overall losses of three PSU general insurers, Oriental Insurance, National Insurance Company and United India Insurance, has slipped into net losses of Rs 2,842 crore in FY 2021-22 as against a net profitability  of Rs 3,869 crore during FY 2020-21

19 full fledged private sector general insurers, led by Bajaj Allianz General Insurance, overall have been able grow their net profitability by 46 per cent year on year y-o-y  to Rs 4,100 crore in Fy 2021 1-22

Four exclusive health insurers, Star Health Insurance General insurance, Manipal Cigna Health  Insurance, Aditya Birla Health Insurance, Niva Bupa Health Insurance, have also added of Rs 1793 to the industry’s overall losses.

Mumbai:

Two years of Covid-19 Pandemic seems to have changed the fortunes of the Indian Insurance industry upside down.

AIP Analytics, in its report (Part-II) on “Indian General Insurance Industry Performance,” found that a record underwriting losses of Rs 28,500 crore in FY 2021-22, has pushed the Rs 2.23 trillion industry, with 31 players, into red despite having a higher investment income during the year.

The general insurance industry, saddled with the huge overall losses of three PSU general insurers, Oriental Insurance(OIC), National Insurance Company(OIC) and United India Insurance(UII), has slipped into net losses of Rs 2,842 crore in FY 2021-22 as against a net profitability of Rs 3,869 crore during FY 2020-21.

With a net profit of Rs 3,869 core, the industry had returned to black in 2020-21 after having net losses of Rs 1,402 crore in 2019-20.

The industry has suffered operating losses of Rs 1,148 crore in Fy 2021-22 as against an operating profit of Rs 6,616 crore in  Fy 2020-21.

The general insurance industry had a total investment income of Rs 32,286 crore, up 11 per cent, in FY 2021-22.

Except, Bajaj Allianz General Insurance, Care Health Insurance and state owned ECGC, the profitability of rest of insurers for the industry can be attributed to their investment income and not pure underwriting in 2021-22.

Except New India Assurance(NIA), the country’s largest general insurance company, which has ended the year with a Rs 164 crore of net profit, the rest of the three general insurers OIC, NIC and UII have recorded heavy losses of Rs 3115 crore, Rs1674 crore and 2136 crore respectively in FY 2021-22.

OIC, NIC and UII have incurred losses, despite having large investment income of Rs 2,296 crore,Rs 2,650 crore, and Rs 2790 crore respectively, due to huge underwriting losses in FY 2021-22.

NIA has the largest investment income of Rs 6665 crore while ICICI Lombard General Insurance(Rs 3000 crore), Bajaj General Insurance Rs 1760 crore, HDFC Ergo General Insurance(Rs 1279 core) are the top three private sector general insurers in terms of investment income.

20 full fledged private sector general insurers, led by Bajaj Allianz General Insurance, overall have been able grow their net profitability by 46 per cent year on year(y-o-y)  to Rs 4,100 crore in Fy 2021 1-22.

However, four exclusive health insurers, Star Health Insurance General insurance, Manipal Cigna Health  Insurance, Aditya Birla Health Insurance, Niva Bupa Health Insurance, have added Rs 1793 crore to the industry’s overall losses.

12 private sector general insurers including one exclusive health Insurers- Care Health Insurance –  have shown net profits during Fy 2021-22.

They are Bajaj Allianz General Insurance (Rs 1339 crore), ICICI Lombard General Insurance(1271.58 crore),  Shriram General Insurance (Rs 663 crore), HDFC General Insurance(Rs 500 core),  Tata AIG General Insurance(Rs 454 crore) IFFCO Tokio General Insurance(Rs 58 crore), Reliance General Insurance(Rs 242crore), both Royal Sunderam General Insurance and SBI General Insurance(Rs 131 crore each), Future Generali General Insurance(Rs 119 crorte), Universal Sampo General Insurance(Rs 118 crore),  Cholamandalam MS General Insurance (Rs 77 crore ), Liberty General Insurance (Rs 34 crore), Care General Insurance (Rs 11 crore)

From the PSU category, three insurers from as many categories -NIA, Agriculture Insurance Company(Rs738 crore ) and ECGC (Rs 875 crore) have been profitable during FY 2021-22

Some of the companies, who have incurred net losses of over Rs 100 crore are- Star Health Insurance (Rs 1041crore), Acko (Rs 382 crore),Go Digit (Rs 295 crore), Edelweiss General insurance (Rs 109 crore),Niva Bupa Health Insurance (Rs 197 crore),Aditya Birla Health Insurance(Rs 311 crore),Manipal Cigna Health Insurance(Rs 256 crore),