The New India Assurance Company has uploaded a revised Annual Report for FY 2025-26 to the stock exchanges on 26th July, 2026, in compliance with Regulation 34(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The revision incorporates two additional components — the Business Responsibility & Sustainability Report (BRSR) and the Comptroller and Auditor General (CAG) comments along with management's response — while all other data in the report remains unchanged.

Financial Highlights: Record Premiums and Profit Growth

The company delivered strong financial performance for the year ended 31st March, 2026. The following table summarises the key financial metrics:

Global GWP reached an all-time high of ₹47,174 Crore, driven by a 10.89% growth in domestic gross direct premium to ₹42,831.42 Crore. The company's domestic business outpaced the general insurance industry average, reversing a recent trend of declining market share.

Segment Performance

The Health and Personal Accident portfolio remained the largest business vertical at 47.57% of the portfolio, followed by Motor at 25.81% and Fire at 14.62%. The Fire segment recorded particularly strong growth, with gross direct premium rising 22.56% to ₹4,834.53 Crore in India. The Marine segment posted 9.20% growth in India to ₹1,033.90 Crore.

The Motor Insurance portfolio recorded a premium income of Rs. 10,727 crore during FY 2025–26. The Health LOB completed a premium of Rs. 21,531 Crore in FY 2025-26, inclusive of Retail, Group, and Government Business. The Broker channel completed Rs. 18,595.57 Crores in premium with an accretion of 14.83%.

Balance Sheet Strength and Ratings

The company absorbed a financial impact of ₹3,525 Crore during the year on account of employee wage and family pension revisions, including ₹597 Crore in Q4 FY26 related to the government-notified family pension hike from 15% to 30%. Despite these non-recurring payouts, the Solvency Ratio remained robust at 1.84 times, above the statutory mandate of 1.50 times.

Global credit rating agency AM Best revised the company's rating outlook to "Positive" from "Stable" while reaffirming its Financial Strength Rating of B++ (Good). Domestically, CRISIL reaffirmed its Corporate Credit Rating of CCR AAA/Stable, a rating held continuously since 2014. CRISIL ESG Ratings also improved from Below Average to Adequate.

Dividend and AGM

The Board of Directors recommended a final dividend of Rs. 1.50 per equity share of face value Rs. 5 each for FY 2025-26, representing 30% of paid-up share capital, subject to shareholder approval. The record date for dividend entitlement was fixed as 10th July, 2026, with the dividend payment date set as 28th July, 2026.

The 107th Annual General Meeting was convened on Monday, 27th July, 2026 at 11:30 AM through Video Conferencing. Key business at the AGM included adoption of financial statements, declaration of the final dividend, and appointment/re-appointment of directors including Ms. Girija Subramanian as Chairman-cum-Managing Director, Mr. S. Sivasankar as Executive Director, and Mr. Hari Har Mishra as Government Nominee Director.

Strategic Initiatives and Outlook

The company's foreign operations recorded a gross written premium turnover in rupee equivalent of Rs. 3,881 Crore and a Net Premium of Rs. 2,997 Crores in 2025-26, with foreign operations recording an underwriting loss of Rs. 79.64 Crores and Profit after Tax of Rs. 305.15 Crores. The company operates across 24 countries and maintains a domestic network of 1,594 offices as of 31st March, 2026.

The company launched its parametric insurance product Nishchit Suraksha on 27th May, 2025, underwriting a total premium of Rs. 1.19 Crores during FY 2025-26. The company was also appointed as lead insurer for Gujarat and Lakshadweep under IRDAI's State Insurance Plan initiative. The company has formally applied for a one-year forbearance on the mandatory Ind AS transition, seeking an extended implementation date of April 1, 2027.

the new india assurance company reported a net loss of ₹257 crore for the quarter ended June 30, 2026 (Q1FY27), reversing a net profit of ₹391 crore in the corresponding period of the previous year. The deterioration in profitability was primarily driven by a spike in the incurred claims ratio (ICR) to 103.38% from 99.76%, largely due to severe pressure in the Motor Third Party line of business where no premium hike offset rising claim inflation. Despite the bottom-line hit, gross written premium (GWP) grew by 2.9% to ₹13,720 crore, while the solvency ratio remained healthy at 1.80x.

Financial Performance Highlights

The insurer’s underwriting result swung to a deficit of ₹2,356 crore from a deficit of ₹1,756 crore in Q1FY26. The combined ratio worsened to 121.44% from 116.16%, reflecting both higher claim payouts and increased operating expenses. Operating expenses rose to ₹1,084 crore (9.66% of net written premium) from ₹852 crore (7.86%) in the prior year quarter.

Investment income declined to ₹2,146 crore from ₹2,290 crore year-on-year, failing to fully cushion the underwriting losses. Profit before tax (PBT) turned negative at ₹(191) crore compared to ₹389 crore previously.

Segment-Wise Performance

Health and Personal Accident (PA) remained the largest contributor to GWP at ₹6,818 crore, growing marginally by 1.90%. Fire insurance GWP contracted by 13.24% to ₹1,971 crore, consistent with industry-wide declines in property premiums. Marine insurance saw strong growth of 49.33% to ₹448.70 crore.

Motor Third Party (TP) ICR surged to 122.20% from 105.09%, significantly impacting overall profitability. Motor Own Damage (OD) ICR also rose to 119.06% from 116.35%. Conversely, the Fire segment maintained a low ICR of 31.72%, though this was partly due to lower premium volumes.

Market Position and Strategy

The general insurance industry grew by 10.9% in Q1FY27, outpacing New India Assurance’s domestic gross direct premium growth of 3%. However, the company’s market share increased quarter-on-quarter from 12.74% to 14.45%. Chairman-cum-Managing Director Girija Subramanian noted that Q1FY27 was challenging due to the crash in property premiums and persistent claim inflation in motor lines. She emphasized a strategic shift towards retail and MSME segments with newer product lines where competitive intensity is lower.

What the Numbers Show

The divergence between top-line growth and bottom-line decline highlights structural pressures in the motor insurance segment. With Motor TP and OD ICRs exceeding 100%, these lines are currently unprofitable on an underwriting basis. The company’s reliance on investment income to offset underwriting deficits is evident, as investment earnings covered nearly 91% of the underwriting loss. Going forward, management’s focus on improving the business mix away from high-intensity motor and health segments towards retail and MSME will be critical to restoring underwriting profitability.