The New India Assurance Company Ltd announced strong financial results for the quarter and year ended March 31, 2026, highlighted by a 61% year-on-year increase in profit after tax (PAT) for the fourth quarter. Driven by a 8.2% growth in gross written premium, the company successfully expanded its market share to 12.74%. Despite challenges in the Motor Third Party and aviation segments, the company remains focused on profitable growth and strong retail and MSME presence.
Financial Performance Highlights
The company delivered a robust performance for the fiscal year ended March 31, 2026. Profit after tax for the fourth quarter (January-March) recorded a significant growth of 61%, while annual profit after tax saw a 40% improvement compared to the previous year. This growth was underpinned by a 8.2% increase in gross written premium, enabling the company to increase its market share to 12.74%.
Strategic Operational Adjustments
During the fiscal year, The New India Assurance Company successfully absorbed the full financial impact of government-mandated wage revisions and pension adjustments. Specifically, an amount of Rs. 3,525 crore was absorbed annually, with Rs. 597 crore impacting the fourth quarter alone. These substantial employee-related costs were partially offset by improved investment returns during the year, ensuring the company maintained a healthy solvency ratio of 1.84x.
Dividend and Outlook
Reflecting its commitment to shareholder value, the Board has recommended a final dividend of Rs. 1.50 per equity share (face value of Rs. 5 each), subject to approval at the upcoming Annual General Meeting. Looking ahead to FY27, leadership remains optimistic, with a strategic emphasis on expanding the company’s footprint within the retail and MSME segments.
Segment Performance
The health insurance business showed positive momentum with an improved loss ratio. However, the performance in the motor segment faced headwinds due to an intensely competitive environment and the lack of a necessary premium revision in the Motor Third Party (TP) category. Additionally, the company is continuing to strengthen its internal controls and audit systems, particularly regarding data input and validation, as it navigates the evolving regulatory and insurance landscape.
Source: BSE
