India’s public sector general insurance companies (PSGICs) have achieved a significant financial turnaround in the third quarter of 2024-25, posting a combined profit of Rs 1,066 crore. This turnaround is attributed to various reforms implemented by the finance ministry, including regular monitoring based on key performance indicators. The government had infused a total capital of Rs 17,450 crore in these companies between 2019-20 and 2021-22 to enable them to undertake structural reforms and enhance operational efficiencies.
All four PSGICs, namely New India Assurance Company Ltd (NIACL), Oriental Insurance Company Ltd (OICL), National Insurance Company Ltd (NICL), and United India Insurance Company Ltd (UIICL), have become profitable, with NIACL consistently maintaining its position as a market leader. United India Insurance Company Ltd posted a profit in Q3 of 2024-25 after a gap of seven years, while OICL and NICL started posting quarterly profits from Q4 of 2023-24 and Q2 of 2024-25, respectively.
The reforms have led to improved risk-management practices, loss-control initiatives, adoption of technology, development of new products, better customer services, and diversification of portfolio. As a result, the PSGICs have turned around from combined losses of over Rs 10,000 crore in 2022-23 to a combined profit of Rs 1,066 crore in Q3 of 2024-25. New India Assurance Company recorded a net profit of Rs 353 crore for the third quarter, although this represents a 51% drop from the previous year.
The public sector insurance companies remain committed to maintaining this positive trajectory and are rolling out ongoing strategic measures and new initiatives to further strengthen their financial stability and improve customer services. They aim to offer high-quality insurance products and services, ensuring long-term sustainability and enhancing customer experience, while achieving growth. The ultimate goal is to achieve ‘Insurance for All’ by 2047, underscoring the government’s commitment to creating strong and competitive PSGICs.