The New India Assurance Company Limited – Investor Presentation Summary

Key Operational Highlights

  • Gross Written Premium (GWP) reached ₹13,720 crore in Q1 FY27, showing modest growth of 2.9% YoY from ₹13,334 crore in Q1 FY26.
  • The Indian general insurance industry property premium declined significantly by 27.8% during the quarter.
  • Motor Third Party business continued under pressure with no premium increase and ongoing claim inflation.
  • Market share increased quarter-over-quarter from 12.74% to 14.45% in the Indian general insurance market.

Key drivers of operational performance: Challenging industry conditions with property premium crash, muted growth in property-heavy quarter, and competitive intensity in Motor and Health segments.

Segment-wise Performance

  • Fire Insurance: GWP of ₹1,971.34 crore, declined 13.24% YoY from ₹2,272.28 crore; Incurred Claims Ratio (ICR) of 31.72% versus 11.53% last year
  • Marine Insurance: GWP of ₹448.70 crore, grew 49.33% YoY from ₹300.48 crore; ICR of 84.66% versus 59.89% last year
  • Motor OD: GWP of ₹1,433.73 crore, grew 12.87% YoY from ₹1,270.29 crore; ICR of 119.06% versus 116.35% last year
  • Motor TP: ICR of 122.20% versus 105.09% last year
  • Health & PA: GWP of ₹6,691.41 crore, grew 1.90% YoY from ₹6,818.51 crore; ICR of 108.24% versus 108.97% last year
  • Crop Insurance: GWP of ₹0.04 crore, declined 99.97% YoY from ₹126.14 crore; ICR of 8152.54% versus 88.90% last year
  • Others: GWP of ₹1,489.82 crore, grew 18.39% YoY from ₹1,258.35 crore; ICR of 65.91% versus 94.12% last year

Explanation of significant changes in segment performance: Significant spike in Motor TP loss ratio severely impacted results, property premium crash affected Fire segment growth, and Crop insurance business dramatically reduced to minimal levels.

Financial Highlights

Revenue (Net Earned Premium): ₹9,683 crore

EBITDA: Not Specified

PAT: Net loss of ₹257 crore versus profit of ₹391 crore in Q1 FY26

EPS: Not Specified

Margins: Combined Ratio of 121.44% versus 116.16% last year; Underwriting loss of ₹2,356 crore versus ₹1,756 crore loss last year

YoY/QoQ comparison: Net loss of ₹257 crore compared to profit of ₹391 crore in same quarter last year; Gross Written Premium growth of 2.9% versus 13.11% last year

Drivers of financial performance: Increased Incurred Claims Ratio (103.38% vs 99.76%) and increase in operating expenses (9.66% of NWP vs 7.86%)

Comparison to market estimates: Not Specified

Key Risks: Motor Third Party claim inflation pressure, competitive intensity in Motor and Health segments, industry-wide property premium decline

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Domestic gross direct premium income grew by 3%

Domestic: ₹12,701 crore, 100% of Total (Indian business)

Export: Not Specified

Regional Breakdown: Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Not Specified

Current Assets/Liabilities: Not Specified

Working Capital/Leverage Metrics: Not Specified

Financial Health Insights: Solvency ratio remained healthy at 1.80x; Investment assets on market value basis stood at ₹99,980 crore

Capex & Cash Flow Health

Capital Expenditure: Not Specified

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: Not Specified

Strategic & R&D Initiatives

Investments in Innovation: Focus on newer product lines, creating new markets to increase penetration; Launching innovative new products with focus on Retail and MSME

Expected impact on growth: Shifting business mix in favor of retail and MSME where competitive intensity is lower

Strategic Rationale: Emphasis on growth in segments other than Motor and Health; Focus on risk management initiatives and improving global credit rating

Industry Trends & Business Environment

Macro/Industry Trends: Indian general insurance industry grew by 10.9% in Q1 FY26-27; Industry property premium crashed by 27.8% during the quarter; No premium increase in Motor Third Party line

Impact on Company: Muted overall GWP growth at 2.9%; Significant adverse impact from spike in Motor TP loss ratio; Q1 FY27 being property-heavy quarter affected performance

Management Commentary & Growth Outlook

Strategic Outlook: "Going forward, we will continue our efforts to change the business mix in favor of retail and MSME with the focus on newer product lines where competitive intensity is lower"

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Industry looking forward to hike in Motor Third Party premium; Competitive intensity in certain segments affecting profitability