The New India Assurance reported a strong performance for Q3FY26, with Profit Before Tax (PBT) increasing by 215%. Domestic Gross Direct Premium growth significantly surpassed the industry average, boosting market share to 13.4%. The company recognized approximately ₹2,500 Cr in provisions toward wage arrears and retirement benefits. The Solvency Ratio is a healthy 1.81 times, well above the regulatory requirement.
Strong Financial Performance
The company’s Global Gross Written Premium grew by 10.5% for the nine-month period. In India, the Domestic Gross Direct Premium growth was higher than the industry average, leading to an increase in market share from 12.8% to 13.4% year-over-year.
Impact of Wage Revisions
Following Central Government’s approval for Public Sector General Insurance Companies, The New India Assurance recognized provisions of approximately ₹2,500 Cr towards wage arrears and retirement benefits. These costs were partially offset by investment income from the equity portfolio. Despite these one-time costs, the company maintained strong profitability.
Key Financial Metrics
Key metrics for the company include:
- Combined Operating Ratio: Impacted by one-time costs, but partially offset by investment income.
- Solvency Ratio: Maintained at a healthy 1.81 times.
Actuarial Liabilities
Actuarial valuation of liabilities related to Claims Incurred But Not Reported (IBNR), Incurred But Not Enough Reported (IBNER), and Premium Deficiency Reserve (PDR) has been duly certified by the Appointed Actuary in accordance with regulatory guidelines.
Future Outlook
The management remains optimistic about the prospects of the general insurance industry and expects to maintain the current momentum to deliver improved performance.
Source: BSE
