The New India Assurance Company has received a positive outlook revision from global credit rating agency A.M. Best, marking a significant improvement in the insurer's credit assessment. The rating agency revised the outlook to positive from stable while affirming key financial ratings for India's largest non-life insurance company.

Credit Rating Details

A.M. Best has taken the following rating actions for The New India Assurance Company Limited:

Key Rating Drivers

The ratings reflect multiple fundamental strengths of the company's operations and financial position:

• Balance Sheet Strength: Assessed as very strong by A.M. Best
• Operating Performance: Adequate performance levels maintained
• Business Profile: Favourable positioning in the market
• Enterprise Risk Management: Marginal but improving
• Government Ownership: Neutral impact from majority ownership by Government of India

Improved Risk Management Framework

The positive outlook revision specifically reflects improving trends in the company's enterprise risk management fundamentals. The New India Assurance Company has demonstrated ongoing improvement in its ERM through several key initiatives:

• Enhanced risk management framework implementation
• Strengthened systems and controls across operations
• Progress in addressing audit qualifications on financial statements that have persisted for several years

A.M. Best expects the company to continue strengthening its ERM over the near to medium term by further improving internal controls and account reconciliation to resolve outstanding audit matters.

Financial Strength Assessment

The company's balance sheet strength assessment is underpinned by robust financial fundamentals:

The investment portfolio consists largely of domestic government and corporate bonds, which are well-rated on the local scale, though the balance sheet remains subject to volatility from domestic equity investment allocations.

Operating Performance and Market Position

A.M. Best assesses the company's operating performance as adequate, with positive operating results reported on a consolidated basis over the last five years. The company achieved an average return-on-equity ratio of 2.50%.

The company's favourable business profile reflects its market position as India's largest non-life insurer by gross premiums written. Key business characteristics include:

• Moderately diversified underwriting portfolio by lines of business
• Multiple distribution channels reducing concentration risk
• Elevated concentration in health insurance segment
• International geographical diversification through overseas operations, foreign branches, agency offices and subsidiaries

The domestic market continues to present significant growth opportunities, though A.M. Best notes high market competition, particularly in health and motor insurance businesses, as an offsetting factor.

The New India Assurance Company Ltd. (NIACL), India's leading public sector general insurer, has reported a robust 57.7% year-on-year growth in Profit After Tax (PAT) for the half year ended September 30, 2025, demonstrating resilience amid challenging market conditions.

Key Financial Highlights

• Gross Written Premium (GWP) grew by 11.5% to ₹24,090.00 crore
• Profit After Tax (PAT) increased by 57.7% to ₹454.00 crore
• Solvency ratio remained strong at 1.79x

Market Share and Business Growth

NIACL's domestic business outpaced industry growth, leading to an increase in market share from 12.60% to 13.25%. The company reported strong performance across health, property, and miscellaneous segments.

Operational Performance

Despite facing challenges from an extended monsoon season and localized flood events affecting motor and property portfolios, NIACL maintained its focus on prudent underwriting and operational efficiency. The impact of these events was effectively managed through reinsurance and strong investment income.

Financial Results Overview

Wage Revision Impact and Investment Performance

The company made a significant provision of ₹1,680.00 crore towards wage revision arrears, which temporarily affected underwriting margins and the combined ratio. However, robust investment income, supported by buoyant equity markets and prudent portfolio management, more than offset this impact, enabling a healthy rise in net profits.

Management Commentary

Ms. Girija Subramanian, Chairperson and Managing Director of NIACL, expressed satisfaction with the results, stating, "The Company achieved an 11.5% growth in Gross Written Premium during the period. Our domestic business grew ahead of the industry, leading to an increase in market share."

She further added, "Excluding the one-time impact of wage arrears, our operating expenses were lower compared to the corresponding period of the previous year, reflecting ongoing cost optimization efforts."

Future Outlook

Looking ahead, NIACL remains optimistic about sustaining growth momentum. The company continues to register industry-leading growth in October, with early indicators suggesting improvement in loss ratios in the second half of the financial year.

NIACL's strong performance, despite the challenges posed by natural events and wage revision provisions, underscores its robust business model and effective risk management strategies. The company's ability to grow its market share and maintain a healthy solvency ratio positions it well for continued success in the competitive insurance landscape.