New India Assurance is focusing on stronger underwriting, operational efficiency and technology-led claims management as it seeks to return to sustainable and profitable growth, according to CMD Dr Lavanya R. Mundayur.
Dr Mundayur said the insurer is working on improving operational efficiency through better underwriting, technological interventions in health and motor claims management, and innovative insurance solutions. The focus comes as property insurance premiums show signs of stabilisation across the industry.
New India Assurance faced a difficult Q2 FY2026-27, with declining property insurance rates, large-risk claims and additional provisioning affecting underwriting performance. Gross written premium grew by only 5.14% during the quarter, primarily because of the sharp decline in property insurance rates.
The property portfolio also suffered significant underwriting losses following multiple large-risk claims and flood-related losses in Gujarat, North India and North East India. Aviation also experienced adverse claims, while the motor and health portfolios continued to face challenges.
A further pressure came from the Motor Third Party segment. Following the Supreme Court verdict recognising the economic value of unpaid domestic work performed by homemakers when determining compensation under the Motor Vehicles Act, New India Assurance made an additional ₹715 crore provision based on its initial assessment of potential losses.
The insurer reported a net loss of ₹1,260 crore in Q2 FY2026-27, compared with a net profit of ₹201 crore in the corresponding quarter of the previous fiscal year. Gross premium income nevertheless increased 5.19% to ₹11,196 crore, from ₹10,644 crore a year earlier.
Dr Mundayur also noted that the absence of premium revisions in the motor TP segment continues to affect the insurer and the wider general insurance industry.
On the investment side, New India Assurance partly monetised its investment in NSE India, generating approximately ₹1,800 crore in capital gains during the quarter.
Despite the underwriting pressures, the company’s solvency ratio stood at 1.61 times, above the regulatory control-level requirement of 1.5 times.
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