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The New India Assurance Company has a very strong balance sheet, with risk-adjusted capitalization at the strongest level as of the fiscal year ending March 2024, according to Best’s Capital Adequacy Ratio (BCAR). The company’s balance sheet is supported by a well-rated investment portfolio, mainly composed of domestic government and corporate bonds. However, it remains exposed to potential volatility due to its allocation to domestic equity investments. Despite this, the company’s operating performance is expected to remain adequate, albeit constrained by challenging market conditions. New India has recorded an average return on equity of 2.9% over the past five fiscal years, driven by stable investment income. However, underwriting performance is likely to face pressure from continued claims in health and motor insurance and exposure to catastrophe losses.
The company still faces challenges in enterprise risk management (ERM), particularly in underwriting risk management and pricing discipline. Despite making progress in addressing some audit-related issues and strengthening internal controls, gaps persist, which will likely continue to influence the company’s ability to align its risk management framework with global standards over the medium term. Despite these constraints, the stable outlook reflects expectations of continued profitability and strong capitalization, supported by New India’s market leadership and investment performance.