“With improved risk-management practices, loss-control initiatives, adoption of technology, development of new products, better customer services and diversification of portfolio, the Public Sector General Insurance Companies have posted a magnificent turnaround from combined losses of over Rs 10,000 crore in 2022-23, to all individual PSGICs becoming profitable by Q3 of the current financial year and posting a combined profit of Rs 1,066 crore in Q3 of 2024-25,” said the finance ministry .

New Delhi: Public Sector General Insurance Companies (PSGICs) have achieved financial turnaround in the December quarter, posting a combined profit of Rs 1,066 crore on the back of various reforms by the finance ministry.

PSGICs, that historically reported losses, witnessed a major turnaround with all of them becoming profitable again in Q3FY25, the finance ministry said in a statement on Thursday.

“With improved risk-management practices, loss-control initiatives, adoption of technology, development of new products, better customer services and diversification of portfolio, the PSGICs have posted a magnificent turnaround from combined losses of over Rs 10,000 crore in 2022-23, to all individual PSGICs becoming profitable by Q3 of the current financial year and posting a combined profit of Rs 1,066 crore in Q3 of 2024-25,” it said.

The ongoing strategic measures and new initiatives continue to be rolled out to further strengthen financial stability of the PSGICs and improve customer services, it said.

While Oriental Insurance Company Ltd (OICL) and National Insurance Company Ltd (NICL) started posting quarterly profits from Q4 of 2023-24 and Q2 of 2024-25, respectively, United India Insurance Company Ltd (UIICL) posted profit in Q3 of 2024-25 after a gap of seven years, it said.

Notably, New India Assurance Company Ltd (NIACL) has consistently maintained its position as a market leader and has been making profits regularly, it said.

NIA recorded nearly 51 per cent drop in net profit to Rs 353 crore for the third quarter of the current financial year.

The government has been committed to creating strong and competitive PSGICs and introduced reforms, including regular key performance indicators-based monitoring, it said.

The Centre had also infused a total capital of Rs 17,450 crore in these PSGICs during 2019-20 to 2021-22 with the aim of allowing these companies to undertake structural reforms, enhance operational efficiencies, and return to profitability, it said.

The public sector insurance companies remain committed to maintaining this positive trajectory, it said.

PSGICs are also committed to offering high-quality insurance products and services, ensuring long-term sustainability and enhancing customer experience, while achieving growth, it said, adding that the PSGICs are also committed to the broader objective of achieving ‘Insurance for All’ by 2047.