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The New India Assurance Company Limited — Q4 FY26 earnings call

Call held 14 May 2026

Company page: The New India Assurance Company share price, financials & guidance record

Management summary

The New India Assurance Company Limited reported a strong FY26 with robust domestic premium growth and significant PAT improvement, outpacing industry averages and gaining market share. However, profitability metrics like Combined Ratio and ICR were impacted by wage revisions and higher claims in certain segments, notably Motor and Marine. The company is strategically recalibrating its Motor portfolio and focusing on retail and MSME segments for future growth.

Highlights

  • Gross Domestic Premium grew 10.9% YoY to INR 42,822 crores, significantly outpacing the industry growth rate of 9.3%.

  • Market share increased from 12.56% to 12.74% during FY26.

  • Profit After Tax (PAT) improved by 40% for the full year FY26 to INR 1,384 crores (vs INR 988 crores in FY25) and by 61% for Q4 FY26 to INR 558 crores (vs INR 347 crores in Q4 FY25).

  • MSME premium achieved a remarkable 25% growth, deepening penetration in this vital sector.

  • Health & Personal Accident segment's Incurred Claim Ratio (ICR) improved from 100.98% in FY25 to 99.05% in FY26.

Concerns

  • Combined Ratio worsened to 122.57% for FY26 (vs 116.78% in FY25), primarily due to the full impact of wage revision (INR 3,525 crores) and increased claims.

  • Net Incurred Claim Ratio (ICR) increased to 98.65% for FY26 (vs 96.61% in FY25), impacted by an aviation claim (Air India crash), NATCAT flood claims, and marine claims.

  • Motor Own Damage (OD) ICR worsened from 104.22% in FY25 to 108.85% in FY26, and Motor Third Party (TP) ICR worsened from 108.17% to 113.86% due to stagnant premiums and rising court awards.

  • Solvency ratio decreased to 1.84 times (vs 1.91 times in FY25) due to the absorption of wage revision expenses.

Key financials

  1. Gross Written Premium (Global) ₹47,174 Cr +8.2%YoY
  2. Gross Domestic Premium ₹42,822 Cr +10.9%YoY
  3. Net Premium Earned ₹38,462 Cr +8.8%YoY
  4. Net Profit After Tax ₹1,384 Cr +40.1%YoY
  5. Net Incurred Claim Ratio 98.7%
  6. Combined Ratio 122.6%
  7. Solvency Ratio 1.84×
  8. Return on Equity 6.1%

What they filed

Q1 FY27: revenue up 1.5%, net profit down 165.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue10,740 10,667 11,616 11,662 13,422 +25%12,013 +13%12,488 +8%11,836 +1%
EBITDA132 107 450 187 -29 −122%201 +88%11 −98%-218 −217%
Net profit71 353 347 391 63 −11%372 +5%558 +61%-257 −166%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentGWP GrowthICRGWP Share
Health & Personal Accident12.6%99%47.6%
Fire10.8%76.5%14.6%
Motor (Combined)——25.8%
Motor Third Party0.13%113.9%14.1%
Motor Own Damage2%108.8%11.7%
Marine11.4%86.7%2.4%
Crop—96.2%—
Other Lines of Business12.5%63.4%—

Capital allocation

high confidence
  • Liquidity Liquidity disclosed Solvency ratio stood at 1.84 times, comfortably above the regulatory requirement of 1.5 times.
    The solvency ratio stood at 1.84 times remaining comfortably above the regulatory requirement of 1.5 times.

Guidance & targets

Motor Segment Growth

  • Motor GWP Growth Motor Segment Growth · FY27 · High confidence single digit
    On Motor, I think it will be a single digit growth. We will not be very aggressive on Motor. We will see that we focus more on the profitability.

    — Mrs. Girija Subramanian

Motor Portfolio Strategy

  • Portfolio Mix & Ratios Motor Portfolio Strategy · next year (FY27) · Medium confidence right mix, reducing trend in ratios
    We have just started this course correction in Motor from the second quarter of this year. And we have seen a very positive change in the portfolio composition for the current year. And we believe it will take another year before we are able to get to the right mix that we feel will work out for New India. And I think the overall ratios will also show a reducing trend in the current fiscal.

    — Mrs. Girija Subramanian

  • Optimal Motor Mix Motor Portfolio Strategy · current year (FY27) · High confidence private car and two wheeler to dominate, reduce CV > 7500 CC
    Commercial vehicles wherein the CC is greater than 7500, we would not like to be much present in that segment. We would like to be in the lower than 7500 CC segment and also have a greater representation in the private car to improve the two wheeler to double digit selectively. And also geographically also across the country we have got different strategies for different vehicle combinations which we will be deploying this year.

    — Mrs. Girija Subramanian

Growth Focus Areas

  • Segments for Higher Growth Growth Focus Areas · FY27 · High confidence all retail segments, primarily Health Retail
    Yes, it will be driven extensively by all retail segments. It can be Health, it will be the Fire, engineering, all the retail lines. Whether it is liability, miscellaneous, credit surety bonds, all of this. And it will primarily be pushed up by the Health Retail segment. That will be the focus area.

    — Mrs. Girija Subramanian

Market context

  • Company GWP Growth Overall Growth · FY27 · High confidence double digit
    The growth will definitely be there. Because I think next year the growth will continue to be very bullish. It will be double digit for the industry. And so it will be for New India also.

    — Mrs. Girija Subramanian

What to watch in Q1 FY27

Motor Portfolio Rebalancing & Loss Ratios

next year (FY27)
Current Course correction started, ratios still high (OD 108.85%, TP 113.86%)
Target Evidence of reducing trend in overall Motor ratios and improved portfolio mix

Why it matters

Motor segment profitability is a key drag; successful recalibration is crucial for overall combined ratio improvement.

And we believe it will take another year before we are able to get to the right mix that we feel will work out for New India. And I think the overall ratios will also show a reducing trend in the current fiscal.

Risks & concerns

  • Stagnant Motor TP Premiums and Rising Court Awards

    high

    Motor TP ICR worsened to 113.86% as premiums have not gone up, while court awards continue to increase for both new and old claims.

    Management acknowledged

  • Impact of Wage Revision Expenses

    high

    The company absorbed INR 3,525 crores for wage revision and family pension, significantly impacting expense ratios, combined ratio, and solvency ratio.

    Management acknowledged

  • Highly Competitive Landscape and Pricing Pressures

    medium

    The General Insurance industry operated within a highly competitive landscape with specific pricing pressures and a rise in claims across various segments, especially in property market where rates are crashing.

    Management acknowledged

  • Global Geopolitical Shifts and Increased Claim Costs

    medium

    Ongoing regional conflicts trigger secondary impacts like increased claim costs due to supply chain-led inflation and a constricted global reinsurance market.

    Management acknowledged

Q&A highlights

8 direct
Motor Portfolio Correction Timeline & Strategy Direct
We have just started this course correction in Motor from the second quarter of this year... And we believe it will take another year before we are able to get to the right mix that we feel will work out for New India. And I think the overall ratios will also show a reducing trend in the current fiscal.

Provides a clear timeline for the expected turnaround in the Motor segment's performance and outlines the strategic shift towards private car and two-wheeler dominance.

Asked by Shobhit Sharma

Competitive Intensity & Discounts in Motor Segment Direct
It continues to be extremely competitive... No, it has gone up. It has been increasingly going up over every quarter in the last year.

Highlights the ongoing pressure on pricing and profitability in the Motor segment due to intense competition and rising discounts, which could impact future margins.

Asked by Shobhit Sharma

Improvement in Commission Ratio Direct
Overall across many lines of business we have reduced commissions. Whether it is Health also we have reduced commissions. We have got increased R.I. commission also. So, the net commission has definitely been in our favor.

Explains the drivers behind the improved commission ratio, indicating active management of acquisition costs and benefits from reinsurance.

Asked by Shobhit Sharma

Commercial Lines Pricing Environment and Outlook Direct
Actually, I think commercial lines will continue to be competitive. And I think we will have to see how we meet up with the competition the rest of the year, where our selected segments are. We will have to play around with the commissions. We will have to play around with the payouts and give more payouts in areas where we want to get the better benefit of the portfolio.

Indicates that competitive pressures are expected to persist in commercial lines, requiring dynamic pricing and commission strategies to maintain market position and profitability.

Asked by Shobhit Sharma

Overall Growth Outlook for FY27 and Motor Segment Direct
The growth will definitely be there... It will be double digit for the industry. And so it will be for New India also. On Motor, I think it will be a single digit growth. We will not be very aggressive on Motor.

Provides key growth guidance for the upcoming fiscal year, differentiating between overall company growth (double-digit) and the more cautious approach for the Motor segment (single-digit) with a focus on profitability.

Asked by Shobhit Sharma

Growth and Profitability in Health & PA Segment Direct
Yes, Health and PA totally contribute around 47.5% of the whole book... we see that the growth will continue to be high... We have reduced the ICR this year by 2% and also brought down the commission ratio. So, therefore there has been a big increase in the profitability for this segment...

Confirms the strong growth potential and improving profitability of the largest segment, Health & PA, driven by market dynamics and active management.

Asked by Vansh Jain

Sustainability of Market Share Gain and Future Growth Drivers Direct
It is very much sustainable and this has been a strategic growth in areas that we want to grow in... And because most of the growth has come in from the retail segments where we put our entire focus on... a lot of this growth is yet to come. Industry has just opened up and growth will be in double digits in the next few years.

Reassures investors about the strategic nature of market share gains and outlines the significant untapped potential in retail, MSME, and Tier 2-3 markets, supporting future double-digit industry growth.

Asked by Nishi Vyas

Historical Market Share Decline and Context Direct
Yes, we were at 19%, but the premium kitty itself was very small. From there to today, we are at INR 3.36 lakh crores. I mean, we have grown multifold. And at 12.74% of what it is today, INR 3.36 lakh crores, that is INR 42,822 crores, is what we write on domestic... we have grown 5 times in this space.

Provides crucial context for the apparent decline in market share, explaining that while the percentage share has reduced due to increased competition, the absolute business volume has grown multifold, indicating significant scale-up.

Asked by Rahul

3 min read 7 chapters

Detailed narrative

FY26 Financial Performance Highlights

The New India Assurance Company Limited reported a strong financial year FY26. Gross Written Premium (GWP) globally increased by 8.15% to INR 47,174 crores, while domestic GWP grew by 10.9% to INR 42,822 crores, outpacing the industry's 9.3% growth. Net Profit After Tax (PAT) saw a significant 40% increase for the full year, reaching INR 1,384 crores, and a 61% increase in Q4 FY26 to INR 558 crores. The company's market share also improved from 12.56% to 12.74%.

Impact of Wage Revision and Claims on Profitability

Despite strong top-line growth, profitability metrics were impacted by significant one-off events. The company absorbed the full impact of wage revision and family pension amounting to INR 3,525 crores during the year, which led to the expense ratio increasing to 14.15% (from 10.21% in FY25) and the combined ratio worsening to 122.57% (from 116.78% in FY25). The Net Incurred Claim Ratio (ICR) also rose to 98.65% (from 96.61% in FY25) due to an aviation claim, NATCAT flood claims, and marine claims. The solvency ratio consequently decreased to 1.84 times from 1.91 times.

Strategic Recalibration of Motor Portfolio

The Motor segment, representing 25.81% of the portfolio, is undergoing a deliberate strategic recalibration. Motor OD ICR worsened to 108.85% and Motor TP ICR to 113.86%. The company is consciously shedding high-loss ratio accounts, focusing on selective underwriting in own damage, targeting retail customers and low-risk fleet segments. The aim is to increase representation in private cars and two-wheelers (selectively to double digits) while reducing exposure to commercial vehicles above 7500 CC. Management expects this correction to take another year to achieve the desired mix and show a reducing trend in overall Motor ratios.

Strength in Health & Personal Accident Segment

The Health & Personal Accident segment continues to be a strong performer, contributing the largest share at 47.57% of the business mix. This segment grew by 12.62% in FY26. Profitability improved significantly, with the ICR reducing from 100.98% in FY25 to 99.05% in FY26, attributed to increased monitoring of ICR, claims audits, and TPA monitoring. Management expects continued high growth and increased profitability in this segment, driven by rising awareness and the 18% GST tax waiver.

Focus on MSME and 'GO RETAIL' Strategy

Building on its success in the MSME sector, where it achieved a remarkable 25% growth, the company has initiated a 'GO RETAIL' campaign. This strategy aims to bring the same intensity to the individual customer segment by leveraging its strengthened digital infrastructure and distribution network. The company plans to grow its agency and other alternate business channels, diversifying its risk profile and driving high-margin granular growth. This dual-track strategy protects both corporate and individual businesses.

Digital Transformation and Operational Efficiency

New India Assurance is actively pursuing digital transformation to enhance operational efficiency and service delivery. IT infrastructure revamp is nearing completion, with digital marketing and sales being implemented for health products and planned for extension to other lines. The company has automated survey appointments and digital survey reports, made all retail products available online, and implemented mobile super apps for customers, intermediaries, and surveyors. AI/ML tools are also being utilized in daily transactional work.

Commercial Lines Strategy in Competitive Environment

The commercial lines segment remains highly competitive, with pricing pressures continuing. Management indicated that they will dynamically adjust pricing and strategy, including playing around with commissions and payouts, to secure better benefits for the portfolio in selected segments. This flexible approach is crucial to navigate the competitive landscape and maintain profitability in this segment.

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