The Public Sector General Insurance Companies (PSGICs) in India have achieved a significant financial turnaround. After years of posting losses, all four companies – Oriental Insurance Company, National Insurance Company, United India Insurance Company, and New India Assurance Company – have returned to profitability. Oriental Insurance Company reported a profit in the fourth quarter of FY 2023-24, while National Insurance Company posted a profit in the second quarter of FY 2024-25, among other milestones.
The government had infused a total of ₹17,450 crore into PSGICs between FY 2019-20 and FY 2021-22 to support reforms and improve efficiency. As a result, PSGICs were able to reverse a combined loss of over ₹10,000 crore in FY 2022-23. By the third quarter of FY 2024-25, all companies had turned profitable, with a combined profit of ₹1,066 crore.
PSGICs plan to maintain their financial stability by implementing strategic measures and improving services. They aim to offer high-quality insurance products and work towards the broader goal of “Insurance for All” by 2047. The companies are focused on improving their risk management, loss control, and technology adoption, and are working to become more efficient and competitive in the market.
The turnaround of PSGICs is seen as a positive step for the insurance industry in India, and is expected to have a positive impact on the broader economy.