“This is the second consecutive quarter in this fiscal where we have posted a profit, which is a result of the strategic business initiatives by the corporate management in the recent past as per its road map towards a sustainable future in terms of growth and profitability,’’ said T Babu Paul, executive director, NIC
Kolkata: With lower expenses and higher investment income, Kolkata based National Insurance Company(NIC) has returned to black and has recorded a net profit of Rs 30 crore in third quarter ended Dec 24 compared to Rs 226 crore of losses in the year-ago period.
Armed with extensive restructuring, state owned general insurer, which has been facing many financial challenges in recent years and waiting for large capital infusion from the government, was also profitable, at Rs 80 crore, in the second quarter ended in Sept 24.
“This is the second consecutive quarter in this fiscal where we have posted a profit, which is a result of the strategic business initiatives by the corporate management in the recent past as per its road map towards a sustainable future in terms of growth and profitability,’’ said T Babu Paul, executive director, NIC.
NIC’s total gross premium had risen by almost 10 per cent year- on-year(Y-O-Y) to Rs12,851 crore in the first nine months of the current fiscal.
NIC’s investment income during the same period rose almost by 30 per cent y-o-y to Rs 3,173 crore.
“We have been pursuing the objective of profitable growth and is confident of ending this financial year with a growth rate in excess of 10 per cent. At the same time we are keen to ensure that there is consistent profitable growth in key business portfolios. Maintaining the topline and the bottomline with equal impetus is a priority for the company,’’ outlined Babu.
There has also been an overall improvement in controlling the company’s underwriting losses across every portfolio that is reflecting in the financials of Q3FY25. The losses in Health and Motor Insurance have been significantly reduced through better claims management, informed Babu.
The company’s overall claims ratio dropped marginally to 99.83 in the reporting quarter from 99.85 in the same quarter of last year and consequently the combined ratio of the insurer has fallen by one per cent this fiscal.
However, the underwriting losses went up marginally to Rs 3091 crore in the Apr- Dec period of the current fiscal due to the increased intermediary commissions and brokerages.
“We have been following a very prudent and conservative approach in accepting Motor and Health business combined with the aggressive claims monitoring has helped us to reduce the incurred claim ratio (ICR) in these two portfolios contributing over 75 per cent of our business,’’ Babu explained.
Further elaborating some of the key improvements in the insurer’s financials, Babu highlighted its total operating expenses on net earned premium fell to 20.17 per cent in Q3FY25 compared to 21.40 per cent during the Q3FY 24.
“This has been possible primarily due to various strategic measures taken, to control the operating expenses through digital transformation and adopting AI Technology,’’ added Babu.
The insurer’s Expenses of Management(EoM) was 25.44 per cent, significantly lower than the specified regulatory threshold of 30 per cent.
NIC has strengthened its Motor third party (TP) claims reserves in accordance with the increased trends in claim awards and appeals. The formation and stabilisation of underwriting and claims hubs have hugely impacted the insurer’s business quality and claims turn around time (TAT).
It has also repriced the bank related affinity products like account linked personal accident covers as the overall claims experience was unsatisfactory.
The insurer has also already provided over Rs 300 crore to meet any expenses out of future wage revision of its 7000 employees during the current fiscal.
In augmenting its manpower , NIC has added 240 officers recently and is in the process of recruiting another 250 officers and 500 clerks who should join in three months of time.
However the company will see 900 employees retiring during the year.
Transacting through big banks like State Bank of India and Bank of Baroda and a few rural regional banks, NIC has emerged as the largest insurer for PMSBY covering almost 20 crore lives.
Health Insurance continued to be the major premium earner of the total product portfolio whereas Motor Insurance contributed the second highest in terms of premium. There has been reasonable growth in the other segments including Fire & Engineering Insurance, Marine Insurance and Miscellaneous insurance contributing to a healthy mix in portfolio distribution for the company.
Great news for us.
May God wishes our company run like this forever for growth &profitability. For this, I wish all employees to work hard for maintaining this performance
Profi in third quarter is a result of increase in investment income, rather than any improvement in insurance operations. Nevertheless, it is heartening to see the company making a turnaround.
Very good news for a Nationalised Govt Owned Insurer to be back in Profit!
First of all, there should be limitation on compensation amount in the third party claims and there should be installments procedure in payment of compensation in third party claims. Motor vehicle act is to be amended on these aspects.
Further, attachment of movables in insurance companies has to be dropped when company deposits amount one by one.
Because, for example computers, chairs and tables are placed for customers purpose. when companies are working in continuous way, Attachment of movables will stop the movement of business. Any way some amendments are required to safeguard of the insurance companies which are working for public.
Very good news for a nationalised govt owned insurer to be back in profit! Very nice possibilities in coming financial years for all products.
We are proud 🦚 for all categories. Thank you so much
Very nice possibilities in coming financial year for all products.
We are proud 🦚 for all categories. Thank you so much
2025-2026
God helps honorable agent , surveyor & honorable employees of great general insurance company
Feel proud. Hearty Congratulations to team NIC. Wishing all success by the end of this FY 👍❤️🙏
It is very good news .Messers The National Insurance company is functioning prior to independence effectively and doing good service to the people .Thanks very much for publishing the happy news.
💪💯🖕🎉🎉🎉🎉
Amazing, Well Managed BABU PAUL SIR.
BALANCED VERY WELL BOTH THE CUSTOMERS SERVICE,COMPANY SERVICE AND ABOVE ALL SETTING 300 CRORES FOR EXPECTED WAGE REVISION, foreseeing the Staff Happiness let’s me SALUTE YOU SIR.
CONGRATULATIONS TO YOUR ENTIRE TEAM WHO MARCHED WITH GREAT DEVOTION TOWARDS SERVING THE PUBLIC.
Well done team National…Good going.👍👍👍
Does the word “profitability” also include the withholding of compassionate ground appointments for months and years?
Let us hope there is a turn round at the end of current fiscal year. Kudos to Babu and his team
J b mohapatra
Congratulations to all NIC team . 👏👏👏
Good
❤️ you NIC. Always ahead in Customer service.
No mention of the solvency ratio at the end of Q3.
Hope NICL will be able to avoid the proverbial Sword of Damocles.
Great and pleasant news for all NICians that our Company is continuously showing growth with profitability. Thanks to the Management and all the Officers and Staff for their dedicated services to the clients.
Keep it up.
Lots of good wishes to everybody.
METTA.
Great news from National Insurance Co.Ltd.Really shocking that you have come to the right track
It is heartening to hear good news
Congratulations 👌 corporate management effective policies bearing positive results reflecting profits in successive quarters,keep it up