New India Assurance Company Limited is India's largest non-life insurance company, promoted by the Government of India (GoI), holding approximately 86% stake. The company was established by Sir Dorabji Tata in 1919 and was nationalized in 1973. Post-nationalization, it became one of 4 subsidiaries of General Insurance Company of India (GIC) but gained autonomy after GIC became a re-insurance company in 1999.
The New India Assurance Company Limited is an India-based multinational general insurance company. Its insurance products include Fire, Marine, Motor, Health, Liability, Aviation, Engineering, Crop, Other Miscellaneous, and others. The company is the largest general insurance company in India in terms of net worth, domestic gross direct premium, profit after tax, and number of branches.
The company operates through an extensive network that demonstrates its market leadership position. Its Indian operations span across all territories through about 2214 offices. It operates in about 26 countries through direct branches, agency operations, subsidiary companies, and associates. As of March 31, 2024, the company has a network of 30 Regional Offices, 1 Regional Government Business Office, 3 Auto Hubs, 13 Corporate Brokers Offices, 21 Key Business Offices, 207 Large Business Offices, 722 Medium Business Offices, 686 Small Business Offices, 70 Auto Tie-up Operating Offices, and 1 IFSC GIFT City Office, making it a total of 1755 Offices inclusive of Head Office.
The company provides credit, engineering, aviation, property, personal accident, liability, marine cargo, marine hull, fire, motor, health, social sector, and miscellaneous insurance products. It also offers crop, cattle, sheep, goat, poultry, horticulture/plantation, and micro insurance products, as well as insurance for agriculture solar pump sets. In addition, the company provides insurance for home and contents, animal driven carts, and pedal cycles. Further, it offers bancassurance and reinsurance products; and government schemes.
The company's specialized fire insurance offerings include diverse products such as Bharat Sookshma Udyam Suraksha, Business Interruption, Fire Floater, Fire Floater Declaration, Fire Large Risk, Industrial All Risk, New India Bharat Griha Raksha, New India Bharat Laghu Udyam Suraksha, and Petrochemical. Marine insurance products encompass Port Package Policy, Sellers Interest Insurance, Ship Breaking Insurance, Specific Voyage, Tea Crop Insurance, Voyage Insurance, and others.
The company has a market capitalization of ₹30,673 Crore as of recent data. For the financial year 2023-24, the company demonstrated strong premium growth. Gross Written Premium increased from ₹38,791 Crore in 2022-23 to ₹41,996 Crore in 2023-24, recording a growth of 8.26%.
The company's latest quarterly performance shows mixed results. Revenue jumped 0.17% year-on-year to ₹11,741.04 Crore in Q4 FY25, with a 9.61% quarter-over-quarter increase. Net profit jumped 15.33% year-on-year to ₹358.54 Crore in Q4 FY25, with a 2.72% quarter-over-quarter increase.
For the full fiscal year 2024-25, net profit declined 7.15% to ₹1,036.63 Crore compared to ₹1,116.48 Crore in the previous year. Sales rose 3.95% to ₹35,537.44 Crore compared to ₹34,186.61 Crore in the previous year.
The company maintains strong operational metrics in the insurance sector. Key ratios for FY22 include:
* Incurred Claims Ratio: 84%
* Commission Ratio: 9%
* Expense Ratio: 20%
* Adjusted Combined Ratio: 97%
* Solvency Ratio: 213%
* Net Retention Ratio: 81.4%
Recent valuation metrics show PE ratio of 29.17 and PB ratio of 1.26 as of May 16, 2025. The company's stock performance has been volatile, with the share price increasing by 1.69% over the past 6 months but decreasing by 23.39% over the last year.
The company is focusing on modernization and efficiency improvements. The company is witnessing a surge in demand for non-life insurance, particularly among younger consumers, driven by geopolitical uncertainties. While gross direct premium income has increased significantly, challenges persist with declining net profit due to rising claims and operational costs. Strategic initiatives, including digital transformation and enhanced customer engagement through AI and multilingual support, are being implemented to improve service efficiency and operational resilience.
The company has also been expanding its management capabilities. New India Assurance Company Limited has appointed seven new General Managers to enhance operational efficiency and drive future growth.
Analyst recommendations show 50% of analysts recommend a 'BUY' rating for New India Assurance Company Limited, with an average target price of ₹210. The company is almost debt-free, which provides financial stability, though the company has delivered poor sales growth of 8.98% over the past five years and has a low return on equity of 1.37% over the last 3 years.
The company's strong market position as India's largest general insurance company, combined with government backing and extensive distribution network, provides competitive advantages. However, investors should consider the cyclical nature of the insurance business and the impact of catastrophic events on profitability when making investment decisions.
