New India Assurance Reports Q1 FY27 Net Loss of ₹243.94 Crore; Gross Written Premium Rises 2.9% YoY to ₹13,835 Crore

The New India Assurance Company Limited (NSE: NIACL, BSE: 540879), India's largest public sector general insurance firm, announced its consolidated unaudited financial results for the first quarter ended June 30, 2026 (Q1 FY27).

The company recorded a top-line growth in gross written premium, but dipped into a net loss for the quarter primarily due to an elevated incurred claim ratio and increased underwriting losses.

Operating Performance and Premium Metrics

Note: All financial figures are reported in ₹ Lakh in the official filing and converted to ₹ Crore where applicable for visual clarity (1 Crore = 100 Lakh).

Gross Premiums Written: Expanded 2.90% year-on-year (YoY) to ₹13,835.13 crore (₹13,83,513 lakh) in Q1 FY27, up from ₹13,445.53 crore (₹13,44,553 lakh) in Q1 FY26. Sequentially, gross premium grew 17.98% QoQ compared to ₹11,727.02 crore (₹11,72,702 lakh) in Q4 FY26.

Net Premium Written: Increased 7.41% YoY to ₹11,297.87 crore (₹11,29,787 lakh), up from ₹10,902.32 crore in Q1 FY26.

Net Premium Earned: Rose 3.43% YoY to ₹9,747.28 crore (₹9,74,728 lakh), compared to ₹9,423.99 crore in Q1 FY26.

Net Investment Income (Policyholders): Stood at ₹1,552.84 crore (₹1,55,284 lakh), compared to ₹1,656.53 crore in Q1 FY26 and ₹7,818.29 crore in Q4 FY26.

Total Operating Income: Reached ₹11,300.12 crore (₹11,30,012 lakh), registering a 1.89% YoY increase over ₹11,090.52 crore in Q1 FY26.

Underwriting Performance & Expenses

Incurred Claims: Increased 6.98% YoY to ₹10,035.89 crore (₹10,03,589 lakh), up from ₹9,380.98 crore in Q1 FY26.

Claims Paid: Stood at ₹9,369.69 crore (versus ₹8,286.06 crore in Q1 FY26).

Change in Outstanding Claims (incl. IBNR/IBNER): Recorded at ₹666.20 crore (versus ₹1,094.92 crore in Q1 FY26).

Operating Expenses (Insurance Business): Rose 27.33% YoY to ₹1,099.90 crore (₹1,09,990 lakh), compared to ₹863.79 crore in Q1 FY26.

Employee Remuneration & Welfare: Rose to ₹796.31 crore (versus ₹666.38 crore in Q1 FY26).

Other Operating Expenses: Stood at ₹303.59 crore (versus ₹197.41 crore in Q1 FY26).

Net Commission & Brokerage: Stood at ₹954.03 crore (versus ₹933.54 crore in Q1 FY26).

Total Operating Expenses: Reached ₹12,089.82 crore (₹12,08,982 lakh), up 8.16% YoY from ₹11,178.31 crore in Q1 FY26.

Underwriting Loss: Widened to ₹2,342.54 crore (₹2,34,254 lakh) in Q1 FY27, compared to an underwriting loss of ₹1,754.32 crore in Q1 FY26 and ₹1,830.75 crore in Q4 FY26.

Operating Loss: Stood at ₹789.70 crore (₹78,970 lakh), compared to an operating loss of ₹97.79 crore in Q1 FY26.

Non-Operating Results & Net Profitability

Shareholders' Account Investment Income: Recorded at ₹599.57 crore (₹59,957 lakh), compared to ₹638.49 crore in Q1 FY26.

Other Shareholders' Income: Stood at ₹26.53 crore (versus ₹201.83 crore in Q1 FY26).

Loss Before Tax: Stood at ₹178.69 crore (₹17,869 lakh), down from a Profit Before Tax of ₹391.13 crore in Q1 FY26 and ₹446.13 crore in Q4 FY26.

Tax Provision: Stood at ₹65.25 crore (₹6,525 lakh).

Consolidated Net Profit / (Loss) After Tax: Dropped into a net loss of ₹243.94 crore (₹24,394 lakh) for Q1 FY27, compared to a net profit of ₹392.40 crore (₹39,240 lakh) in Q1 FY26 and ₹564.16 crore in Q4 FY26.

Share of Profit in Associate Enterprises: Contributed ₹4.79 crore (versus ₹9.27 crore in Q1 FY26).

Earnings Per Share (EPS): Basic and Diluted EPS for the quarter fell to -₹1.47 per share (face value ₹5/- each, not annualized), down from ₹2.43 in Q1 FY26 and ₹3.51 in Q4 FY26.

Key Analytical Ratios & Financial Health

Incurred Claim Ratio: Increased to 102.96% in Q1 FY27, up from 99.54% in Q1 FY26 and 95.53% in Q4 FY26.

Combined Ratio: Stood at 121.14%, compared to 116.03% in Q1 FY26 and 118.18% in Q4 FY26.

Solvency Ratio: Maintained at 1.80x as of June 30, 2026, well above the regulatory requirement of 1.50x (compared to 1.87x as of June 30, 2025 and 1.84x as of March 31, 2026).

Expenses of Management Ratio: Stood at 16.92%, compared to 15.24% in Q1 FY26 and 21.47% in Q4 FY26.

Net Retention Ratio: Recorded at 81.66% (versus 81.09% in Q1 FY26).

Return on Equity (ROE): Stood at -3.95% (annualized), compared to 6.97% in Q1 FY26.

Gross NPA Ratio: Improved to 0.21% (Gross NPAs at ₹146.28 crore), down from 0.23% as of June 30, 2025 and 0.22% as of March 31, 2026.

Yield on Investments (without unrealized gains): Stood at 2.80% for the quarter (versus 3.32% in Q1 FY26).

Balance Sheet Metrics & Shareholding

Paid-Up Equity Share Capital: Stood at ₹824.00 crore (82.40 crore shares of face value ₹5/- each).

Reserves & Surplus (excluding Revaluation Reserve): Stood at ₹23,654.06 crore as of June 30, 2026, up from ₹22,373.40 crore as of June 30, 2025.

Fair Value Change Account & Revaluation Reserve: Stood at ₹16,083.87 crore.

Total Investment Assets:

Shareholders' Fund Investments: ₹24,156.11 crore.

Policyholders' Fund Investments: ₹57,846.96 crore.

Shareholding Pattern: Government holding remained unchanged at 85.44%, while public shareholding stood at 14.56% (2,400 lakh shares).

Commenting on the results, Chairman-cum-Managing Director, Ms. Girija subramanian said, "Q1FY27 was a challenging quarter for the Indian general insurance industry. The insurance industry property premium crashed by 27.8% during the quarter and Q1FY27 being a property heavy quarter for New India Assurance, our overall GWP growth was muted at 2.9%.

The Motor Third Party line of business continued to be under pressure as there was no premium increase and the claim inflation pressure continuing. The significant spike in Motor TP loss ratio had a severe adverse impact on the results. The industry is looking forward to a hike in Motor Third party premium.

Our solvency ratio remained healthy at 1.80x. Our investment assets on a market value basis stood at a healthy Rs. 99,980 crs. 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."

Shares of The New India Assurance Company Limited was last trading in BSE at Rs. 173.20 as compared to the previous close of Rs. 173.30. The total number of shares traded during the day was 56451 in over 921 trades.

The stock hit an intraday high of Rs. 175.80 and intraday low of 169.30. The net turnover during the day was Rs. 9678464.00.

Source : Equity Bulls

Keywords

TheNewIndiaAssuranceCompany INE470Y01017 NIACL GeneralInsurance Q1FY27 Q1FY2027 ResultUpdate