Key Financial Figures

  • Gross Direct Premium Income (GDPI): ₹1,860 crores for Q1 FY2027, representing growth of 2.6% year-over-year
  • Gross Written Premium (GWP): ₹2,130 crores for Q1 FY2027, growing 6.7% year-over-year
  • Net Earned Premium: ₹1,671 crores for the quarter
  • Claims Ratio: 85.6% for Q1 FY2027 compared to 81.3% in Q1 FY2026
  • Combined Ratio: 120.4% for the quarter
  • Operating Profit: ₹71 crores for the quarter
  • Profit Before Tax: ₹116 crores for the quarter
  • Investment Portfolio: Approximately ₹19,000 crores
  • Investment Income: Approximately ₹380 crores for the quarter
  • Portfolio Yield: 7.31%
  • Solvency Ratio: 1.93 times (well above regulatory requirements)

Business Segment Performance

Motor Insurance:

  • Grew approximately 5.7% during the quarter
  • Portfolio mix: Private cars (48%), two-wheelers (9.5%), commercial vehicles (42.5%)
  • Motor OD loss ratio deteriorated to unacceptable levels (specific number not quantified but referenced as 80-86% range)
  • Combined ratio for motor segment deteriorated to 128% in FY2026 from 123% in FY2025
  • Corrective measures include portfolio optimization, pricing interventions, enhanced NCB sourcing, tighter underwriting controls, and strengthened claims management

Commercial Lines:

  • Recorded decline of 8.6% in Q1 primarily due to pricing pressure in fire segment
  • Fire line declined 15.5% compared to industry decline of approximately 28%
  • Better performance attributed to robust reinsurance capacity and calibrated approach
  • Growth supported by marine, engineering, and liability segments
  • Large fire loss of ₹12.4 crores (net account) impacted results

Health Insurance:

  • Moderate growth as company prioritizes portfolio quality over volume expansion
  • Health claims settlement: 99% within 30 days
  • Net Promoter Score (NPS): 73
  • Corrective measures include product redesign, pricing revisions, migration of group portfolios to retail platforms, and SME segment expansion

Strategic Initiatives and Outlook

  • Completed rollout of motor issuance platform across bank channel
  • Implementing workflow enhancements in motor claims process
  • Preparing for implementation of Ind AS, Risk-Based Capital framework, and Digital Personal Data Protection requirements
  • Focus on profitable growth, disciplined underwriting, and efficient claims management
  • Technology as key enabler for transformation initiatives

Regulatory and Market Context

  • Supreme Court judgment on homemaker claims (₹30,000 threshold) under review via petition filed by General Insurance Council
  • No provisions taken during quarter pending judicial review outcome
  • Industry combined ratio deteriorated to approximately 117.8% in FY2026 from 112.6% in FY2025
  • General insurance industry growth approximately 8.3% in Q1 vs 8.9% in corresponding quarter last year
  • IFRS implementation scheduled for April 1, 2027 (forbearance approved by IRDAI)
  • Impact assessment of IFRS transition ongoing, no reliable estimates available

Reinsurance Environment

  • Reinsurance capacities secured at beginning of fiscal year, comparable to leading private sector players
  • Inward reinsurance business includes commercial lines strategy and group health participation
  • Multiple CAT events (Gujarat, Assam, Jamshedpur floods) with industry loss estimates of ₹3,000-4,000 crores
  • GIFT City emergence contributing to soft reinsurance market conditions with excess capacity
  • Expectation that CAT events may lead to improved pricing discipline in property insurance

Management Commentary Highlights

  • Immediate objective to reduce motor OD loss ratio to high-70s range
  • Not accepting current OD loss ratio levels as sustainable
  • Focus on improving mix between new motor business and existing portfolio
  • Commercial lines will remain key focus area with disciplined approach
  • Health business requires capability building from ground up
  • Expect pricing discipline to improve following NATCAT events