The New India Assurance Company (NIACL) Q2 25/26 earnings summary

Executive summary

• Achieved 11.5% year-over-year growth in gross written premium (GWP) to INR 23,875 crore for H1 FY26, outpacing industry growth and expanding market share to 13.25%.

• Profit after tax rose 57.7% year-over-year to INR 454 crore, despite a one-time wage revision provision of INR 1,680 crore and elevated weather-related claims.

• Maintained a strong solvency ratio of 1.79 times, well above regulatory requirements.

• Growth led by health, property, and miscellaneous segments, with domestic business performing strongly.

• Focused on digital transformation, operational efficiency, and underwriting discipline to drive future growth.

Financial highlights

• Net premiums earned increased to INR 18,768 crore from INR 17,028 crore year-over-year.

• Investment income rose significantly, offsetting the impact of wage revision and elevated claims.

• Combined ratio increased to 127.21% in H1 FY26, reflecting the wage revision provision.

• Market share increased across key segments: fire (16.4%), marine (17.31%), motor (9.63%), health (16.54%), and others (17.4%).

• ROE reached 4.18% in H1 FY26.

Outlook and guidance

• No immediate premium hikes expected in health or motor; ongoing strategic risk selection and rate corrections in group health.

• Expectation of improved ICR and combined ratio by year-end as seasonal claims normalize.

• Digital initiatives and operational optimization expected to further reduce costs and improve efficiency.

• IFRS 17 adoption scheduled for April 2027, with a parallel run in FY26-27; expected to improve reported combined ratio.

• Growth momentum sustained into October 2025, continuing to outpace industry.