📌 At a glance:
- FY25 PAT: ₹1,456 crore (vs ₹1,368 crore in FY24)
- Gross Premium: ₹41,799 crore (+5.9%)
- Underwriting Loss: ₹1,758 crore (widened from ₹1,407 cr)
- Investment Income: ₹6,181 crore
- CMP: ₹174.77 (–3.61% today)
🏢 About the Company
The New India Assurance Company Ltd (NIACL) is India’s largest government-owned general insurance company. From insuring mango farmers to luxury yachts, they do it all — though the claims might take longer than a Marvel reboot.
👨💼 Key Managerial Personnel
- CMD: Neerja Kapur
📊 FY25 Financials
| Metric | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Gross Premium | ₹41,799 cr | ₹39,460 cr | +5.9% |
| Net Earned Premium | ₹22,739 cr | ₹21,478 cr | +5.9% |
| Underwriting Loss | –₹1,758 cr | –₹1,407 cr | Loss ↑ |
| Investment Income | ₹6,181 cr | ₹6,304 cr | –1.9% |
| Net Profit (PAT) | ₹1,456 cr | ₹1,368 cr | +6.4% |
🔍 Key Points
- Underwriting performance continues to bleed
- Investment income held up profits
- Combined Ratio remains >100%, indicating operational inefficiency
🧮 Fair Value Estimate
- FY27E PAT = ₹2,000 cr (assume 11% CAGR)
- P/E = 10x (public insurance avg)
- Target MCap = ₹20,000 cr → FV/share = ₹225 (1.2B shares)
- CMP = ₹174.77 → Undervalued, but with caveats
⚠️ Risks
- Higher claim ratios in health & motor segments
- Regulatory changes & pricing pressure
- Government ownership = unpredictability
📉 So Why Did It Fall 3.6% Today?
- Underwriting loss widening = negative signal
- Likely investor disappointment on margin front
- Market wanted a bigger investment buffer
😂 EduInvesting Take
- PAT may look pretty, but it’s investment-fueled makeup hiding a wounded underwriting face
- This is the LIC of general insurance: big, slow, stable-ish
- Verdict: “Sarkari insurer with FD returns and IPO-style drama. Buy for the dividend, not for dopamine.”
