Led by Tata AIG General insurers, which had an underwriting losses of Rs 2,229 crore, 25 e private sector multiline general insurers ‘ underwriting losses have spurted by 12 per cent to Rs 12,398 crore in FY 24-25.Similarly, with Star Health at the top, the total underwriting losses of seven SAHIS have more than doubled to Rs Rs 1635 crore in Fy 24-25. All the four PSU general insurers have reduced their underwriting losses in Fy 25.
Mumbai: For the first time, the PSU general insurers have seen their underwriting losses falling while the private sector general insurers including the stand alone health insurers(SAHIs) have recorded higher underwriting losses in FY 24-25.
Insurers suffer underwriting losses when premiums they earn are inadequate to cover the claims paid to insureds.
Led by Tata AIG General insurers, which had underwriting losses of Rs 2,229 crore, 25 private sector multiline general insurers ‘ total underwriting losses have spurted by 12 per cent to Rs 12,398 crore in FY 24-25.
Three private sector general insurance majors –HDFC Ergo General Insurance, IFFCO- Tokio General Insurance and Reliance General Insurance have underwriting losses of Rs 1,436 crore, 1,112 crore and 1, 227 crore respectively.
It is worth noting that there were rampant undercutting of premiums by the domestic general insurers, particularly by the private sector general insurers, which were offering more than 40%-50% of discounts to corner larger business in the first three quarts of Fy 24-25.
All these 25 multiline general insurers have increased their topline by almost 8 per cent to Rs 1,70 lakh crore in FY 25.
Similarly, with Star Health at the top, the total underwriting losses of seven SAHIS have more than doubled to Rs Rs 1635 crore in Fy 24-25. Star Health itself had an underwriting losses of Rs 378 crore during the reporting period.
Seven SAHIs, at Rs 39,000 crore, have grown their total premium by almost 20 per cent in Fy 25.
However, for the first time four PSU general insurers-New India Assurance(NIA), Oriental Insurance Company(OIC), United Insurance Company(UIC), and National Insurance Company(NIC) have managed to reduce their underwriting losses from Rs 18,863 crore to Rs 18,366 crore in FY 25. All the four companies have reduced their underwriting losses in Fy 25.
They had a total premium income of Rs 1,01,772 crore, up four per cent ,in FY 25.
Despite having higher underwriting losses, in terms of bottomline, 25 multiline private sector general insurers have generated a total net profit of Rs 8,150 crore, up 30 per cent, in FY 25.
Except five companies, Acko General Insurance, Zuno General Insurance, Zurich General Insurance, Liberty General Insurance and Raheja General Insurance, rest have produced profits in Fy 25.
The top five profitable multiline general insurers in FY 25 are – ICICI Lombard General Insurance with a profit of Rs 2,508 crore , Bajaj General Insurance (Rs 1,832 crore) Tata AIG general Insurance(Rs 837 crore) Shriram General Insurance (Rs 514 crore) and SBI General Insurance (Rs 508 crore).
Among four multiline PSU general insurers, three have remained profitable in FY 25. They are NIA with a profit of Rs 988 crore, OIC (Rs 144 crore) and UII (Rs 154 crore). National Insurance Company had a loss of Rs 483 crore in FY 25.
Two speciallised PSU general insurers Agriculture Insurance Company and ECGC have recorded a net profit of Rs 1,368 crore and Rs 2,076 crore respectively in Fy 25.
Among seven SAHIs, except Mani Pal Cigna Health Insurance and Narayana Health Insurance and Galaxy Health Insurance, rest have remained profitable in FY 25.
The total amount of foreign direct investment (FDI) in the Indian general insurance industry has remained same at Rs Rs 5267 crore in both FY 24 and FY 25.