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.

The New India Assurance Company Limited will convene its 107th Annual General Meeting (AGM) on Monday, July 27, 2026, at 11:30 a.m. IST through Video Conferencing / Other Audio-Visual Means (VC/OAVM), in compliance with Ministry of Corporate Affairs circulars dated September 22, 2025. Shareholders can participate only through the virtual facility provided by the company. The AGM notice and Annual Report 2025-26 are available on the company's website at www.newindia.co.in , as well as on the websites of BSE Limited and National Stock Exchange of India Limited.

AGM Key Dates and E-Voting Details

The company has engaged Central Depository Services Limited (CDSL) to facilitate remote e-voting for members. The following table summarises the key event dates:

The e-voting module during the meeting will be disabled 15 minutes after the conclusion of the AGM. Members attending the meeting through video conferencing will be counted for the purpose of reckoning the quorum under Section 103 of the Companies Act, 2013.

AGM Business Agenda

The 107th AGM will transact the following ordinary and special business items:

Financial Performance: Record Premiums and Profit Growth

The New India Assurance Company delivered a strong financial performance for the year ended March 31, 2026. The following table presents the key financial highlights:

Global GWP reached an all-time high of ₹47,174 Crore, up from ₹43,618 Crore in the previous fiscal, recording 8.15% growth. Domestic gross direct premium stood at ₹42,831 Crore, reflecting 10.89% growth. The company's domestic business outpaced the general insurance industry average, successfully reversing the recent trend of decreasing market share and expanding its position from 12.56% to 12.74%.

The Global PAT registered an exceptional 40% growth for the full year to close at ₹1,384 Crore, compared to ₹988 Crore in the previous year, catalysed largely by a phenomenal 61% spike in fourth-quarter PAT, which reached ₹558 Crore. The company's solvency ratio stood at 1.84x, well above the statutory mandate of 1.50x.

Segment Performance and Portfolio Overview

The Health and Personal Accident portfolio remains the largest business vertical at 47.57%, followed by Motor at 25.81% and Fire at 14.62%. The Fire segment achieved a gross direct premium of ₹4,834.55 Crore with 22.22% growth and a market share of 17.56%, while the Engineering segment recorded a premium of ₹1,191.18 Crore with 10.45% growth and a market share of 17.51%. The Health LOB completed a premium of ₹21,531 Crore in FY 2025-26. The Motor Insurance portfolio recorded a premium income of ₹10,727 Crore, with the claim settlement ratio improving to 94.40% compared to 94.13% in the previous year.

The company's Broker vertical completed ₹18,595.57 Crore in premium with an accretion of 14.83%, while the Agency channel contributed ₹11,545.67 Crore with 3.94% accretion. The Bancassurance channel generated premium income of ₹250+ Crore during the year. The company's Marine segment secured a commanding 17.76% market share with an overall marine premium of ₹1,033.90 Crore, and the Aviation Department sustained a market share of 40.05% with 15% premium growth.

Key Operational and Strategic Highlights

The company successfully absorbed a monumental financial impact of ₹3,525 Crore during the year on account of employee wage and family pension revisions, including ₹597 Crore in Q4 FY26 alone to address the government-notified family pension hike from 15% to 30%. These non-recurring payouts were cushioned by excellent yields from the investment portfolio.

Global credit rating agency AM Best revised New India Assurance's rating outlook to "Positive" from "Stable", while reaffirming its Financial Strength Rating of B++ (Good). CRISIL has reaffirmed its Corporate Credit Rating of CCR AAA/Stable, held continuously since 2014. The company plays a core role in the newly established Bharat Maritime Insurance (BMI) Pool, backed by a ₹12,980 Crore sovereign guarantee, extending an underwriting capacity of approximately ₹100 Crore for war and conflict-related risks.

As of March 31, 2026, the company operates a network of 1,594 domestic offices and has a presence across 24 countries. The total employee strength stood at 10,405 as on March 31, 2026. The company's paid-up equity share capital as on March 31, 2026 is ₹824 Crore.

Participation and Contact Information

Members can attend and participate in the AGM through VC/OAVM facility only. For any queries or grievances relating to e-voting, members can contact Alankit Assignments Limited at 205-208, Anarkali Complex, Jhandewalan Extension, New Delhi - 110055, or via email at rta@alankit.com . Members seeking information with regard to accounts or any matter to be placed at the AGM are requested to write to the Company on or before Friday, July 17, 2026, through email at investors@newindia.co.in .

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE470Y01017/641b863b-48e7-47fb-b809-8d1191f360cf.pdf