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Informist, Friday, Jul. 24, 2026

 

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--New India Assurance Q1 net loss INR 2.57 bln vs PAT INR 3.91 bln yr ago
--New India Assurance Q1 total income INR 112.36 bln vs INR 110.26 bln yr ago
--New India Assurance Q1 net premium earned INR 96.83 bln vs INR 93.69 bln
--New India Assurance Q1 net premium written INR 112.3 bln vs INR 108.4 bln
--New India Assurance Solvency ratio 1.80 times on Jun 30 vs 1.84 times QoQ
--New India Assurance incurred claim ratio 103.38% Jun 30 vs 95.85% qtr ago
--New India Assurance combined ratio 121.44% on Jun 30 vs 118.34% qtr ago
--New India Assurance CMD: Q1 was challenging for general insurance cos
--New India Assurance CMD:Q1 insurance sector property premium crashed 27.8%
--New India Assurance CMD:Spike in motor third-party loss ratio hit result Q1

 

By Devanshu Singla

 

MUMBAI – Public sector general insurance company New India Assurance Co. Ltd. reported a loss for the June quarter due to a spike in claims for motor third-party insurance. There was no increase in premiums for motor third party segment even as claims increased, the company said.

 

The company posted a net loss of INR 2.57 billion in the June quarter compared to a net profit of INR 3.91 billion in the year-ago quarter. The company's total income increased marginally on year to INR 112.36 billion during the June quarter from INR 110.26 billion in the year-ago quarter. 

 

The public-sector company earned a net premium of INR 96.83 billion, up 3% on year from INR 93.69 billion. Its net premium written rose 4% to INR 112.30 billion in the quarter from INR 108.4 billion. The company's total expenses increased 8% on year to INR 120.39 billion from INR 111.25 billion. Its total incurred claims increased 7% on year to INR 100.10 billion. The operating expenses increased 27% on year to INR 10.84 billion. 

 

The company's solvency ratio slipped to 1.80 times in the June quarter from 1.87 times in the year-ago quarter and 1.84 times in the trailing quarter. The incurred claim ratio increased to 103.38% in the June quarter from 99.76% in the year-ago quarter, and from 95.85% in the March quarter. This was largely due to the claim ratio rising to 122.20% for the motor third-party business from 105.08% a year ago. The claim ratio for the health segment, its largest business, was unchanged at 108.24%.

 

The company's combined ratio also increased to 121.44% from 116.16% in the year-ago quarter and 118.34% in the March quarter. "Q1FY27 was a challenging quarter for the lndian general insurance industry," Girija Subramanian, chairman-cum-managing director, said. "The insurance industry property premium crashed by 27.8% during the quarter and Q1FY27 being a property heavy quarter for New lndia Assurance, our overall GWP (gross written premium) growth was muted at 2.9%"

 

"The significant spike in Motor TP (third party) loss ratio had a severe adverse impact on the results. The industry is looking forward to a hike in Motor Third Party premium," she said. Friday, shares of New India Assurance ended almost flat at INR 173.20 on the National Stock Exchange. The company declared its June quarter results after equity market closed.  End

 

Edited by Pankaj Aher

 

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