New India Assurance's Q4 FY25 net profit declines 2% to ₹347 crore

New India Assurance posts 2% YoY drop in Q4 profit due to provisions; GWP rises 8%, combined ratio improves on operational efficiency and lower claims

The New India Assurance Company, the country’s largest general insurer, reported a 2.06 per cent year-on-year (YoY) decline in net profit for the January–March quarter of FY25 (Q4FY25), with profit falling to ₹346.63 crore from ₹353.93 crore in the corresponding period of FY24.

 

The company’s Gross Direct Written Premium (GWP) rose 8.14 per cent YoY to ₹11,432.6 crore. Its total expenses declined by 1.79 per cent YoY to ₹10,449.01 crore in the quarter. 

 

For the full year, net profit declined by 12.86 per cent to ₹988 crore in FY25 from ₹1,129 crore in FY24, largely due to provisions made towards legacy non-moving balances. The company made a provision of ₹802 crore during the year.

 

 

“… The company made a provision of ₹802 crore towards legacy non-moving reinsurance balances, which has also impacted the reported Profit After Tax and Return on Equity (ROE) in FY25, adjusted for which the YoY results have been excellent. Our focus in FY26 will remain on further enhancing profitability, with a strong emphasis on launching innovative products aimed at the retail and MSME segments,” said Girija Subramanian, Chairman and Managing Director, New India Assurance Company.

 

According to a press release, the general insurer recorded a 3.86 per cent YoY increase in gross written premium to ₹43,618 crore in FY25 from ₹41,996 crore in FY24. Profitability margins improved, with the combined ratio declining to 117 per cent from 120 per cent in the previous fiscal, reflecting operational efficiencies. 

 

Subramanian added: “… Despite the rise in GWP, the company has managed to reduce its underwriting losses by 11 per cent, driven by a lower claim ratio and significant reduction in operating costs. The combined ratio has improved from 119.88 per cent in FY24 to 116.78 per cent in FY25. This improvement could have been even greater if not for the elevated loss ratio in the Motor Third Party segment, where the much-needed premium revision has not happened yet.”

 

The incurred claim ratio dropped to 94.43 per cent as of 31 March 2025, from 95.35 per cent a year earlier. The solvency margin improved to 191 per cent as of 31 March 2025, compared to 181 per cent as of 31 March 2024.