Q3 2026 New India Assurance Company Ltd Earnings Call
It's Q3 and 9 month fee, 26 results.
We have with us today, Mrs. Kirija, subramanyan chairman, come managing, director Mrs, cosori Singh, Gupta, executive director, general managers and Chief Financial officers among other esteemed management members.
At this moment, all participants are in listen-only mode. Later, we will conduct a question and answer session at that time. If you have a question, please press star and 1 on your telephone keyboard.
Please note that this conference is being recorded.
I would now like to hand over the floor, to Mrs. Girija subramanyan chairman Comm, managing director, thank you. And I now hand over the floor to you over to you, Ma'am.
Good afternoon, everyone and girija subramanyan chairman come managing director of the new India Assurance Company, Limited, I warmly. Welcome all of you to this earnings conference call to discuss our financial and operational performance for the third quarter, and 9 months ended December 31st 2025 joining me on this call are Mrs, kuri same Gupta, executive director, a general manager, Chief Financial Officer and other senior officials of the company. At the outset, I would like to express our sincere gratitude to our shareholders, investors analysts policyholders and all stakeholders for their continued trust, and support your confidence and engagement remain. A key source of
Often for the company before diving into the numbers, I'm proud to share significant, third-party, validation of our financial stability. In December 2025, am best a global credit rating agency, revised our Outlook to positive from stable while reaffirming our financial strength rating of B, plus plus good. And long-term issuer credit rating of B Triple B plus this revision specifically recognizes our improving Trend in Enterprise risk management and the strengthening of our internal systems and audit controls New India, Assurance stands at an important phase of this journey.
Carrying forward a legacy of over 1 or 6 years while steadily adapting to the evolving dynamics of the insurance industry, established in 1919 and nationalized in 1973. The company has played a foundational role in the development of India's General Insurance sector. Today with a pan-india network of over 1,660 offices and an overseas presence across 24 countries, we continue to maintain leadership in the Indian non-life Insurance market in terms of gross, direct premium.
A strategic Focus remains clearly defined and consistent. We continue to prioritize risk, weighted and sustainable growth, strengthening, and writing discipline, enhance claims efficiency and service quality leverage technology to improve operational, effectiveness and preserve, Capital strength and solvency. These principles guide, our decision making across business Cycles during the quarter. The General insurance industry, operated in a competitive environment with Selective pricing pressures and elevated claims experience in certain segments, as for General Insurance Council data. For December 2025, the Indian, General insurance industry reported, a gross direct premium of rupees 2.5 lakh, crores registering a year-on-year growth of 8.69% against this backdrop, New India Assurance, underworld gross, direct premium of rupees.
322,229 crores translating into a market share of approximately 13.40% reinforcing. Our continued leadership position in the sector, our Diversified distribution, architecture and balanced product portfolio continue to support stable performance, while managing acquisition costs and risk concentration for the 9 months ended fee. 26, our distribution mix comprised direct at 31.
Fuse quarters. We have taken deliberate steps to recalibrate our portfolio by exiting or restructuring, select large corporate accounts where pricing did not educate the compensate for risk or Capital consumption? This has been offset by an increased focus on retail, sne and better quality risk. Our operating philosophy continues to emphasize prudent risk assessment at the policy level ensuring that growth is aligned with profitability and capital efficiency. The benefits of this approach are reflected in improved, portfolio, stability and controlled volatility, turning to our financial performance for the quarter and its Q3 fee. 26 cross written, premium Global was rupees 11,680 crores. While net premiums earned stood at rupees 9,725 crores, the company reported a net profit after tax of rupees 372 crores for the
Quarter compared to rupees 3.53 crores in the corresponding period last year from an operating metrics perspective for Q3 fee. 26, the net incurred claim ratio stood at 90.77%, the commission ratio and expense ratio were a 10.78%. And 16.44% of the net premium respectively, the combined ratio for the quarter was reported at 1.178% solventi ratio
Stood at, 1.81 times remaining comfortably about the regulatory requirements and the return on equity for the quarter was 6.63%.
For the 9 months ended fee 26 the gross written premium income Global stood at rupees 35,555 crores net profit after tax for the period stood at rupees 8/26 crores for 9 months fee. 26, the net incurred claim ratio was reported at 99.63% with the commission ratio and expense ratio at 9.80% and 14.56% of net. Premium respectively. The combined ratio stood at 1:24 solvency ratio remained strong at 1.81 times and the return on equity for the period was 4.95%. While near-term challenges such as claims inflation and competitive. Intensity versus we remain confident that our continued focus on discipline and underlying operational efficiency, and customer Centric initiatives that support stable and sustainable performance, our emphasis remains
On long-term value creation, while upholding the highest standards of governance and service Excellence with this. I conclude my opening remarks. And now invite our general manager of finance, Mrs. Mary Abraham to take you through the financial performance in Greater detail.
Thank you, ma'am. And good afternoon all.
So, I'd like to take you through the financial performance.
Of New India for for the quarter and up to the quarter ended. 31st December 2025 as well as the performance of New India as compared to the uh, bizarre the industry and the company strategy.
Beginning with the financial performance.
For the quarter ended.
31st December 2025, our growth. Certain premium was 11,680 as compared to that of the previous year of 10,778 with a growth of 8.37%.
And after the quarter, our growth in Gross, written premium was 10.47% as compared to the previous year.
Coming to the incurred claims ratio.
It was 90.77% for the quarter, ended the December 2025 as compared to that of the previous year, which was 94.49%, so there was a reduction.
Of 4%. And this is as against uh, the figures up to the quarter, which stood at 97.38% for last year as compared to 99.62% for the current year. And this was mainly because of the half yearly in the increase, in the icr up to the half year. That is uh September uh 30th 2025
The commission ratio on net written premium, uh, was 10.78% for the quarter as compared to 9.70% for the quarter of the previous year.
Operating expenses for the quarter of the current year was 16.44% as compared to 12.09% of.
Government and we are awaiting the notification.
The combined ratio, uh, was 117.98% for the quarter of the current year as compared to 116.28% for the quarter of the previous year. This once again, the increase is because uh, of the uh, wage revision provision that has been made.
Coming to the underwriting results, it is a loss of 736 crores, and up to the quarter, the loss was 7,000 and 46 crores.
However, with the investment income that we were able to, uh, earn in the quarter of 2,280 crores, and the interest dividend and rent of 1,200 crores, and the capital gains of 1,000,080 crores.
Net of the other expenses of 174 crores, we were able to make a profit before tax of 367 crores, for the quarter as compared to 116 crores for the quarter of the previous year.
The underwriting results were mainly impacted by the provision towards wage areas and the retirement benefits of active employees.
Uh, where we had provided 759 crores for quarter 3?
Of the financial year, 2526 and 1,877 crores for the 9 months ended. 31st December 2025.
After making provision for tax a profit after tax stood at 372 crores, for the quarter of this year as compared to 353 crores for the quarter of the previous year.
So it's notable here that the PBT the profits before tax, uh, recorded an increase of 215 crores, 15% as compared to that of last year.
Income from the fixed income securities and dividend income from Equity, showed a steady increase during the period.
While boiled Equity markets held in realizing higher capital gains and besides we also had monetized Investments to help in the provision that we made for the wage revision.
Going on to some of the important uh, ratio.
The important ratios.
The solvency ratio.
Yeah, the solvency ratio.
Up to quarter. 3 of 2526 is 1.81 times as compared to 1.9 times of last year. However, it's notable that, uh, solvency ratio increased from 1.79 times in quarter, 2 of the current year to quarter, 3 of the current year,
Asset under management up to the quarter, increased from 97,690 crores, last year to 1 lakh 890 crores in the current year.
Technical, Reserve up to the quarter increased from 52,536 crores. Last year to 56745 crores in the current year.
Net worth.
Up to the quarter increased from 21,516 crores to rupees 22,630 growth in the current year.
Fair value change account.
Which was 24,991 crores. Last year up to the quarter, uh, reduced to 19,993 crores.
um, in up to the quarter of the current year, mainly because of the volatile Market condition and also because of the monetization of investment that we had done to finance our uh wage revision provision
And the return on, uh, equity.
Which stood at 4.01% after the quarter last year, increased to 4.95% up to the quarter of the current year.
Coming to the segment wise performance.
For the quarter.
fire registered fire, uh, line of business registered an increase of 4.06% and up to the quarter, the increase was 15.31%
Marine had a very significant increase of 19.46%, for the quarter with an increase of 9.01% up to the quarter.
Motor including OD and tpe premium.
Incurring losses, huge losses.
Health, including PA register a good growth of 18.42% in the current quarter?
And up to the quarter to the growth was good at 16.15%.
Liability for the quarter increased by 21.42%. While the liability premium after the quarter registered, an increase of 8.5%,
Engineering, showed an increase of 16.46% for the quarter.
And it was an increase of 15.51% up to the quarter.
Aviation there was a minus of 5.14% in the current quarter due to some premium, which did not come in. Whereas up to the quarter, there is a growth of 1.13%.
The others, all the other business lobs put together for the quarter, there was a reduction of 26.14% mainly because, uh, the crop premium did not, um, come to us and up to the quarter. However, there is a growth of 7.08%.
Going over to the uh incurred claims ratio segment wise.
The icr for fire improved.
From 54%, sorry. It, uh, not improved. It wasn't from 54% to 65% for the quarter.
And up to the quarter. Uh, it was 81%.
For marine.
Marine again the, uh, icr for the quarter, uh, was adverse at 119%, which is mainly due to some very large claims that came in uh specially due to uh 2 of the ships that sank. And the resultant gaw uh claims the fire claim that was there on 1 of the ships and a ship that sank resulting in a large Marine cargo claim.
Motor.
The icr both body and TP put together the icr for the quarter was 108% as compared to 102% uh last year.
Um, and this was as mentioned earlier, was because of the uh, decision being taken to weed out some of the non-viable uh product lines.
Health, including PA registered a remarkable uh, decline for the quarter from 103 to 91% and up to the quarter to. There was a decrease from 103% to 101%.
Liability to show the reduction in the icr for the quarter from 57% to 21%.
And up to the quarter, it was a reduction of from 59% to 51%.
Engineering, the icr for the quarter, stood at 3%, as against 37% of the previous year and up to the quarter, it was, um, the icr was 52% as compared to 54% of the last year.
Aviation.
The icr for the quarter, stood at 149% as compared to 106%.
Uh, this was mainly due to the Air, India claimed that we had.
And the the icr up to the quarter was 323% as compared to 78% of the last year.
And all the other lines of business. The icr for the quarter students, 52% it was a reduction from last year's figure of 76% and up to the quarter. The figure was 79% as compared to 69% of the previous year.
Coming to the performance of Nia vizavi that of the industry.
The General insurance industry, grew by 8.69%.
In quarter 3, Financial year, uh, 2526, whereas uh, new India's domestic Work Direct premium income, Drew grew by 13.71% outpacing. The industry growth.
And the year-on-year market share increased from 12.8% to 13.40%.
The growth momentum continued in December 2025, with company outpacing. The industry growth.
The market share segment wise.
so in fire,
the fire lob while, uh,
New, India had a total premium of
4,028 crores out of the total Market, the share of 22,769 crores which was a market share of 17.69%.
For marine, our market share is 18.19%.
In water, we have a market share of 9.63%.
Market, share of 16.44%.
For crop, it is 0.03% and all the other lines of business. It is 17.12%.
The company's strategy.
Our segment mix.
Health accounts for 48.16%.
Motor TP accounts for 13.04% of our total premium motor. OD is 11.10%.
Marine is stands at 2.43%.
Fire is at 15.52%.
The other across is 0.37%, and all the other lines of business is 9.35%.
And as, for our distribution mix.
Brokers account for 37% of our, uh, total premium.
Agency accounts for 24.39%.
Direct business accounts for 31.15%.
Bank Assurance accounts for 0.56% and dealer business accounts for 6.90%,
Key initiatives for the financial year, 2526.
The launching Innovative new products with focus on retail and msme.
We have entered new lines like parametric insurance.
This emphasis on growth and segments other than motor and health.
Where the competitive competition intensity is high.
And this further impetus on risk management initiative and we have taken steps to improve the global credit rating.
The key initiatives it initiatives that have been taken we have a call center offering services in 7 Regional languages. We have revamped our uh
Ladies and gentlemen, the management line has been disconnected. Please hold while we get there.
Ladies and gentlemen, thank you for being on. Hold being on hold, the management has been connected. Now over to you Ma'am.
Hello. You've just continuing with the key. It initiative. Uh we have called Center offering services in 7 Regional languages.
We have revamped our website.
WhatsApp service in 8 languages, which offer policy and claim related services.
we have, uh,
Ai and ml enabled chatbot for customer service.
Claim automation efforts continue for faster claim settlements.
And customer portal offering a seamless user experience for standard products.
Thank you.
Can you open the floor? It's done. Yeah, it is done. Yes. Yes.
Okay, thank you.
We will now begin the question and answer session.
Anyone who wishes to ask a question, may press star and 1 on their touchtone telephone if you wish to remove yourself from the question. You may press star and 2 participants are requested to use headsets while asking the question.
Ladies and gentlemen, we will wait for the question to assemble.
The first question is from the line of French Market from simple. Please go ahead.
Hello, thank you for the opportunity uh, few data and business related questions. Uh, first have the reasons disease in claims that you can't hear you clearly? Can you repeat this question? We can't hear hear you clearly.
Okay, I I will repeat. My question. Is it clear? Now
Can be a little louder.
I'm sorry to interrupt. Now we are unable to hear you.
Can you please use the handset mode?
Okay.
Hello, hello.
Yeah, please go ahead. Yes. Yes. My question was, has the idea in our Reserve release, which has seen a decline from you know, 547 around 85 crores has that also resulted in a decline in claims Ratio, or how should I read this? This is my first question.
Yeah, uh I can answer that question. Uh the uh there is a no particular decline.
say, as far as the
Party are concerned. However, what happens is there are lines like uh crop where initially you set aside Reserve in the form of uh ibnr and later when the claims are actually either uh paid out the corresponding level comes down. So in this quarter, we did take quite a lot of payments on a crop business which led to a reduction of 5.
so, if you explode crop, there has been, uh, the IBM estimates have been pretty consistent with what it was during the first half, uh, and there is no specific release per se, as far as the results,
Okay, I left it 1. Second question from the investment book. If we see the investment book, has not grown so much. It's, it's grown only by 3%, but if we see our investment income and investment, they have improved quite a lot here on the. So if you could provide some color on that piece as well,
Uh, yeah. I'm uh Chandra here so the uh yield has increased because of the uh what Mary ma'am has mentioned during the presentation. We have, uh, sold some bit of equity to release realize profit and that is why the overall income on, uh, investment has increased. This is a 1 time thing, which is done for accommodating the wage revision expense.
Okay. Yeah.
Okay, I'm not. I'm on investment book. If you could provide some kind of
About, uh, sorry. Uh, the growth, the growth on investment.
Yeah, because we have sold, like, I just mentioned, so accordingly our to some extent. It has come down the, uh, value investment Book. Value has, uh, not grown to the extent. Uh, that was would have been there in previous quarter.
Okay. And first question, I understand we have existed the a group uh uh group uncomfortable business in group health. But we are unable to see are you?
Hello.
Your voice is muffling.
Okay.
Thank you.
The next question is from the line of show with Sharma from hdsa. Security is limited. Please go ahead.
Yeah. Hi ma'am. Thanks for the opportunity. Hope I am audible. Uh, so my my first question is on the growth side. So if I look at on the motor side though, you have mentioned that we are, we are recalibrating our portfolio and uh, because of which we have slowed down. So can you help us understand how long it will take to stabilize? And how should we see the growth trajectory uh from next year onwards? And if you can give us some color around the composition of our motor portfolio between the Private Car, 2 wheeler and Commercial Vehicle. How it has moved and what changes we have Incorporated. If you can, give some numbers around it, that would be helpful. And lastly, on the motor side of the business, if you can give us some composition in terms of the business, which we
Has chosen the form of a new vehicles and old vehicles that would be helpful why I wanted to know this is because on the health side though, we have taken number of measures the result on the loss issue is quite visible. But on the motor side though, I understand TP is a long tail. But on the OD side, ideally it should be visible if you have taken that kind of stance. So this is my first thing. Yeah.
Makeup for this growth in the next couple of quarters. And at least it'll show an upward Trend if what we feel and, um, uh, the composition as of now is 46% in private car, 47% in commercial vehicles and the rest in 2 wheelers. So, uh, basically it is, um, uh,
Basically this this particular restructuring also I think we will uh try to work towards a better composition on uh private car and uh uh more than the other 2. So we are working towards a better composition on private car and going forward. I think in a couple of quarters, we should be showing some positive uh growth and profitability and reduction in icr at least on water.
Just to follow up on this. Can you tell us how this mix has on the Private Car 2 wheeler CV? How this mix has evolved over the last couple of quarters or maybe last year? How we ended? And where we are right now?
So on the commercial vehicles, I think we had we had more on commercial vehicles earlier and uh, private car was, um, definitely less than 47%. Uh, now, I think we have increased the share on private cars and commercial. Vehicles has come down slightly. The 2 wheelers has by and large remained where it was. So, um, in commercial vehicle also we have restricted, uh, our uh, writing on, uh, on those greater
Than 40,000 CC vehicles and their I feel because we have, you know, stayed away from those more risky uh, segment. There also, there will be a turnaround that we'll see in the next.
You got it?
No, any kind of benefit, which you have seen on your portfolio because of the GST rationalization over the last quarter and the motors had specifically
Motorcycle side actually the private car growth. Is there in the private car segment because of the GSC rationalization and I think that will continue and of course here a quarter on quarter as we grew we will see that growth in premium also because of that,
Okay, thank you. Uh, now another question is on the wage cost though in the notes to account, the wage cost areas which is mentioned is around 1500 crores impact for the 9 months period, but the price really is mentioned, it is somewhere around, 2500 or so can you help us clarify that? And lastly, on the wage cost you have mentioned that there is a family pension uh revision which has happened and to 30% of of 30 of the cost. So can you give us some number? How this cost would be and what kind of impact this number can have? Will it be this large like we have seen the areas
Yeah, so actually the wage revision calculations it's around 2,500 on the hole for the for the revenue account. It it's around 1,677 crores which comes to the in-service employees and for the areas that are that have to be paid to them from August 22, but the rest of it, that is around 642.1% and that has been taken to the profit and loss account.
So this is the breakup and as far as the FPS is concerned, 30%, that is not yet been that is from the date. The notification comes through, therefore, it is not been included here and that would be roughly around 7 800 crores. So that should complete the whole thing for us. As far as page, revision is concerned.
Then anything on the earlier side is yet to be provided in our books, or we have taken an entire impact in this in the 9 months period. No, no, we'll have to provide for the 7800 crores, 7 or 800 crores around that amount for the FPS in the last quarter, because it cannot be done before the notification comes out. Notification is yet to come out
So only the FPS portion is pending for provision because of the gadget notification. Yeah, that is prospective that is why it's not been taken into.
Okay, now, coming to your investment book, we have seen a significantly higher realization, you mentioned, it was to offset the impact of the wage cost revision. So can you help us? Understand how much gains we have realized during the 9 months and the current quarter? And how should we think about it going forward as well?
Um,
so the, uh,
Profit on sale that we have realized is around 4,000 and 2236 crores.
And uh, of this, uh, 2000 crores and pertaining specifically to the wage Innovation uh uh provision. So,
The balance is our regular uh, trading activity, buy and sell activities. So according to the journey of the portfolio,
Ma'am. How much of this was uh uh accounted for in the third quarter?
It is entirely accounted as a third quarter.
And what's the what's this number for 9 months? Period.
For the for the quarter. It is uh 4,000. Yeah.
Yeah, which 1 2,280 283 is the investigation.
Uh, just a moment.
Yeah.
So it is uh 2000 uh, around 2,000 CR from North uh, special activity.
No, I think he's asking what is the amount? Which is
The quarter, Q3 it is around 1080 in all total, from 80,000. Yeah, 1,080 crores for uh, from uh, profit on sale of equity in the third quarter, and overall it is for up to the third quarter. It is 4,200
Okay if that, how should we think about it? Yeah, and this is what I was asking. How should we think about it? Let's say for FY 27 because I if we are able to provide that SPS again in the in the fourth quarter, let's say so, how should we think about it? Uh, our investment book will maintain that 2,000 AUD crores, kind of run it on the gain side.
Uh, yes, sir. That would be the, our normal, uh, uh, sale activity would be around, uh, 7 to 800 in the quarter plus the additional that is required to, uh, to set off the, uh, wage revision Provisions, which will be known once the, uh, notification comes. And when the provision is required to be made, we will be planning accordingly depending on what is our income that we have already generated? From all our entire portfolio up to that point of time.
Ma'am. 1 of your portfolio company. Wherein you have a significant holding has just gotten maybe approval for IP. Do we have a plan to participate in the IPO for that?
That is uh in the future. So we will uh look into it when it comes up.
Okay, ma'am, ma'am. Lastly, on the taxation side, we have not seen, we have anything provided for in terms of the income tax, uh, onto your onto your pnl, for the 9th month here. So can you help us understand? Why is it so and how should we think about it going forward?
No, this is because we Advanced Tax is being paid.
Right. Uh, so and so because of that, we don't need to uh,
I mean, we are paying adequately Advanced taxes being paid and that is why we are not providing for
Right? Right of you have given you some good. Yeah. Plus the right of that we have been doing on the bad debts as for our board approved policy that is also given us some release and some cushioning because of which taxes come down,
So ma'am, for this financial, it should be assumed a negligible tax rate for you.
Yes.
And what should be a long-term? Kind of a long-term tax rate going forward from fee, 27 onwards,
that's 572% of the profit.
It should be 17.47%. This is the Matt uh, tax rate.
Okay, ma'am. Okay, ma'am. And lastly, I'm coming on the key for more questions.
Thank you and have a good rest. Thank you.
ladies and gentlemen, a reminder, to all if you wish to ask a question, please press star and 1
The next question is from the line of power. Nandala, s and individual investors. Please go ahead.
Uh, hello. I hope am I Audible
Yes.
Yeah, thank you for this opportunity. So my question is, which segment contributed most to the Improvement in the Google claim rate in this quarter? And it would be helpful if you quantify the your ideation
What what did you ask, which is the segment that which segment contributed most to the Improvement?
Claim ratio.
Is the help the health section?
Okay, segment contributed immensely to the Improvement because it forms around 48% of our book and the incurred claim ratio has come down by 2 percentage points.
To 9 months and for the quarter, it has come down quite drastically from 1 or 3 to 91%.
Okay, and this 91% of our net income stream ratio, is this sustainable, sustainable on a run rate basis from now?
He was educated pricing and going for accounts where pricing is more fair and more adequate. And apart from that we have increased our, you know, our fraud anti-fraud activities. Like, you know, we increase inspections from 30 to 50% compared to even more in the quarters to come. We have got our own doctors. We are on the way of hiring new doctors. So this, in this activity, will go on intensifying. We are in the on the, you know, threshold of buying a new software for fraud analysis and, um, already, the vendor selection process is on. And as soon as I think in 3, to 4 months time, we would be able to bring in that slot monitoring software, which would make this entire activity, even more automated. And I think therefore the the sustain of this, uh, this model is going to definitely be there going forward.
Oh, okay. Understood and can you comment on run rate loss ratio and motor and health excluding 1 off and get losses.
Most are on health. We are aiming towards um uh
We're aiming towards the loss ratio around uh, 98 to 100%.
Overall.
And uh for for motor also, we are trying to bring the uh loss ratio to around 1000 and 304%.
Just 1 last question. From my side. How else market? Share, trended across a motor health and non-motor segment uh, in Q3. And where do you see the strongest competitive position?
We have done well on the market share, uh, you know, side wherein, I think, uh, we have, uh, like fire Marine everywhere. We are 17, 18% market share, including health, and Pa, which is a very big portfolio. And in, with the sahih companies being there, even that we have managed around 15.44%, which is quite credible going forward. Uh, we we see, uh, more. We see a similar kind of, uh, market share across these segments maybe in the others. Like, in the miscellaneous side. We expect to see more, uh, market share in the miscellaneous side, SMA and parametric and such other
Right.
Okay, thank you. That's it for myself.
Thank you. The next question is from the line of Panic or tari from AUM Capital private limited. Please go ahead.
Yeah, good afternoon to the management team, and thank you for the detailed presentation. Uh, I just have a couple of questions. Uh, the company has provided around, uh, 2026 closed towards wage revision. Uh, this quarter including 824 crores for retired, employees is this provision now fully reflective of the expected liability or investor should raise for further adjustments.
It is already provided for completely.
Right.
So FPS is 1 thing which as we clarified, that is going to be taken care of in the last quarter. But all other things that are already provided for till this Q3 is already completely provided for us. There's going to be no enhancement here.
And uh, my second question is management indicated, focus on segments Beyond motor and health due to competitive investment intensity. Uh, so, uh, which segments in fire marine and Engineering can deliver profitable growth. And what is your medium-term next Target?
Fire is always been a Mainstay and we've been leading this Market in fire. He'll continue to do that, and um, fire is an area where we are definitely, um, ahead of the market and we'll continue to be there Marine is a, is an area where New India is a traditionally been leading especially in Marine health. We'll continue to do that and only for this quarter. I think because of a couple of un, uh, I mean unusual losses, we've had this loss numbers. Otherwise Marina has also been performing quite well for us as far as um, the health and pa. Uh, there is selection the, uh, the uh, the the the fraud monitoring exercise that we have strategy that we have employed as paid off for us as we can see, and we'll continue on the same lines and and for the others where we have a miscellaneous and others other lines like parametric shity, we already are leading the market and we'll continue to uh have this major presence in the market and continue to have our main stay there.
How do we prevent modesty around 5%?
What are the key levers management is focusing on the structurally improved Roe, whether it is underwriting discipline or expense control or Capital efficiency,
So basically there are all of these parameters of contributed to this um uh to this growth. Yeah, I actually will elaborate on that. Yeah, coming to Roi right now, it is in the single digits. The focus is to bring it up to the double digits and the primary level will be to reduce the IC. Uh, the results are quite sensitive to the swings in icr with every percentage improvements uh creating quite a substantial uh Improvement in the P. So the aim is to improve the icr in order to increase the profitability and thereby increase row. So the first goal is to reach double digits.
Okay, so the budget did not include major direct support for The General Insurance sector.
On interest awarded in motor accident claims. So do you view this change in the broader policy? Environment for General Insurance in the budget, especially in terms of improving penetration competitiveness or the pricing Dynamics, sir,
No.
Yeah, so basically New India has declared this year as the European and we are totally committed to seeing that. We are able to give support to the large population of SMS, which form around 1.6 crores. And um we want to see that we are absolutely in line with the governments um intention to see that their financially included and the budget that is given uh now so many in uh enablement for the msme sector. So this opens up a lot of insurance opportunities for us, where credit is concerned where overall protection for the SMS is concerned and also the expansion into Tire. 3 tire tire tire 2 Tire 3 cities so I think all of this will contribute to New India expanding its book on msme and already we are in. Um we are actively uh you know engaging in Awareness programs for msmes across the country we are lies.
Learning with agencies like Dan and Branch Street at now, and such media agencies to ensure that we have these shows where we bring in a lot of awareness for msme. The msme book is also grown by 36% up to um December 25th. And uh we know that this is going to grow in the months to come.
Okay, ma'am. Thank you so much. Thank you.
Thank you. The next question is from the line of first jail, an individual investor, please go ahead.
Oh hello. Hello. Hello. Oh thanks for the opportunity. Ma'am.
So I have a few questions.
Firstly on the segmental wise performance, so, uh, can you, uh, through some light on a segment West performance, uh, specially on other business because we, if you see, uh, we have degraded by 26%.
On Cotton water business. So what exactly happened in this quarter? Uh, where we declined, uh, 26%, that much.
Crop insurance.
Grown by 26% is that is in the other segment, uh, that was mainly because of crop insurance. Basically, we don't write crop for a direct basis. In the market. We used to write crop as a reinsurer for, uh, agriculture Insurance Corporation this year because of some regulatory issues. Uh, agriculture Insurance couldn't see us, uh, business on a reinsurance basis. And therefore, uh, there we have degraded significantly because, uh, yes, yeah, and just to put some numbers, uh, our crop. The others include both crop and uh, the miscellaneous segment crop. The premium has come down from 180 crores last year, the encoder to 5.
7 crores. Whereas, in the miscellaneous other segments, which is a focus area. The premium has gone up from 2 246, crores to 39, CR, which is an increase of close to 26%. So because the crop premium came down overall basis. You are seeing this number of minus 26, otherwise if you see within that including crop, the business has grown by 26%
Uh, okay. So uh, my next question would be on the uh, if we uh, if you exclude the wage revision affect, what would be the combined operating ratios look like for a Q3 or, or for the 9 for this this year?
yeah, without the impact of the
Wage revision. The C uh, would have been further quarter would have been 110.13%.
As compared to.
As compared to 1 1, 7. 9 8.
And up to the quarter with the wage revision. The C was 124% and without the wage revision Provisions. It would have been 117.6%.
And my last question is on there, uh, new business.
Line like you are entering into a new business line for like, for a parameters. So uh, can you just give me some road map, or what are your plans and what are we are? Currently standing at some numbers? Maybe some ballpark numbers something.
Yeah, so basically parametric insurance is a new type of insurance, which is, which will take time to pick up in India because it is, uh, it's it's not exactly on the principles of insurance. Like, wherein there's a threshold fixed for a particular weather related Peril. Uh, and once the threshold is breached, then everything from ground up is paid. So uh, whether the person suffers from A Loss or not, it is paid. So
This involves a lot of um you know, active collaboration with with fintech companies in short tech companies, um, who understand whether related parallels to understand the, the kind of, uh, you know, uh, portfolio that we are ensuring and then they able to fix up a threshold in a way that, uh, it's not everyday issue, it's not everyday loss. So, basically, uh, this is, this is something that is slowly picked up. We've done some, uh, 10 or 12 contracts till now. And but I think, uh, the days to come this is being sought sought after both from a penetration agenda because the government wants that, you know, penetration gets done faster and quicker and parametric ensures. That penetration can be done faster because um, you have to just it is possible to, you know, to issue policies for a large number of people at 1. Go from a digital interface and also to settle claims in no time through the digital interface. Whereas
Uh people get paid the claims in others in minutes. So this is something where in the claim reaches, the insured within a few hours of the catastrophe. There is uh, the normal claim. Procedure takes a lot of time, a lot of processing and all of that. So this is something that eases the whole burden of uh claim processing. And therefore um this is going to be 1 of the very uh happening lines of business is going forward. But as of now, since it is yet to develop,
It is slow.
Ladies and gentlemen, the management line has been disconnected. Please hold while we get them reconnected.
ladies and gentlemen, thank you for being on hold, we have management connected now over to you Ma'am,
Yeah. So as I said that um though the pickup is not very fast but it is 1 of the most sought. After products, people wanting to know more and more about it. Many people going for it. Also and therefore, we see a very big traction for this in the coming year itself.
Okay, okay, thank you. Thank you. That's all from my side.
Thank you very much, ladies and gentlemen, that was the last question. I now hand the conference over to MRSA India, Insurance Company, Limited for closing comments over to you man.
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