Public sector general insurance companies achieve financial turnaround, become profitable again

While Oriental Insurance Co. Ltd (OICL) and National Insurance Co. Ltd (NICL) started posting quarterly profits from Q4 of FY24 and Q2 of FY25 respectively, United India Insurance Co. Ltd (UIICL) posted profit in Q3 of FY25 after a gap of 7 years. Notably, New India Assurance Co. Ltd (NIACL) has consistently maintained its position as a market leader and has been making profits regularly.

The government has been committed to creating strong and competitive public sector general insurance companies and introduced reforms including regular key performance indicators-based monitoring, the statement said.

The government had also infused a total capital ₹17,450 crore in these companies from 2019-20 to 2021-22 with the aim of allowing these companies to undertake structural reforms, enhance operational efficiencies, and return to profitability.

With improved risk-management practices, loss control initiatives, adoption of technology, development of new products, better customer services and diversification of portfolio, the insurers have posted a turnaround from combined losses of over ₹10,000 crore in 2022-23, to all individual firms becoming profitable by Q3FY25. They posted a combined profit of ₹1,066 crore in Q3 of 2024-25, the finance ministry said.

The companies are committed to maintaining this positive trajectory, the statement said. Ongoing strategic measures and new initiatives continue to be rolled out to further strengthen their financial stability and improve customer services. 

They are also committed to offering high-quality insurance products and services, ensuring long-term sustainability and enhancing customer experience, while achieving growth, the statement said. The firms are also committed to the broader objective of achieving “Insurance for All” by 2047.