The New India Assurance Company (NIACL) investor relations material

Executive summary

• Q1 FY27 was challenging for the general insurance sector, with gross written premium growing 2.9% year-over-year to Rs.13,720 crore (₹13,83,513 lakhs), reflecting muted growth due to a 27.8% drop in industry property premiums and continued Motor Third Party pressure.

• The quarter ended with a consolidated net loss after tax of Rs.257 crore (₹24,394 lakhs), compared to a profit of Rs.391 crore (₹39,240 lakhs) in Q1 FY26, mainly due to adverse claims in Motor and Property lines.

• Solvency ratio remained robust at 1.80x, above regulatory requirements, and investment assets stood at Rs.99,980 crore.

• Strategic focus is shifting toward retail, MSME, and new product lines with lower competitive intensity.

Financial highlights

• Net Written Premium rose to Rs.11,229 crore (₹11,29,787 lakhs), and Net Earned Premium to Rs.9,683 crore.

• Net Incurred Claims increased to Rs.10,010 crore, with ICR at 103.38% (up from 99.76% YoY).

• Combined Ratio worsened to 121.44% (121.14% in alternate reporting) from 116.16% YoY.

• Return on equity for the quarter was negative at -3.95%, compared to 6.97% in Q1FY26.

• PAT for Q1 FY27 was a loss of Rs.257 crore, compared to a profit of Rs.391 crore in Q1 FY26.

Outlook and guidance

• Continued focus on changing business mix toward retail and MSME, and launching innovative products.

• Emphasis on growth in less competitive segments and risk management to improve global credit rating.

• Management expects continued pressure in Motor Third Party due to lack of premium hikes and claim inflation.