1. At a Glance – PSU Dinosaur with a Gym Membership
New India Assurance Company Ltd (NIACL) is that old-school PSU uncle who still dominates the room, but everyone secretly checks his cholesterol report. Market cap sits at ₹24,540 Cr, stock chilling around ₹149, down ~20% in 3–6 months, reminding investors that legacy doesn’t guarantee swagger.
Despite being India’s largest general insurer, NIACL runs on thin margins (OPM 1.53%), ROE of 3.6%, and a combined ratio of 116.16% in Q1 FY26, which basically means underwriting is still leaking money like a government tap.
But here’s the twist: PAT ₹1,193 Cr (TTM), dividend yield 1.21%, solvency 1.87x, and a gigantic investment book of ₹86,718 Cr doing the heavy lifting. The stock looks cheap versus private peers, but cheap doesn’t mean sexy. It means… complicated.
This is not a turnaround story yet. This is a “state-sponsored endurance athlete” story. Curious already?
2. Introduction – Born in 1919, Still Filing GST Appeals in 2026
Founded by Sir Dorabji Tata in 1919, nationalised in 1973, and now majority-owned (~85.4%) by the Government of India, New India Assurance is not just a company — it’s a policy instrument with an NSE ticker.
NIACL commands 15.5% market share in Q1 FY26, up from 12.6% in FY25, which sounds heroic until you realise that scale without underwriting discipline is like selling samosas at cost price — great for footfall, terrible for profits.
The company writes policies across fire, marine,
motor, health, crop, and everything that can possibly catch fire or fall sick. It also carries the burden of social insurance, government schemes, loss-making segments, and international nostalgia.
So yes, it’s big. Yes, it’s important. But is it efficient? That’s where the comedy begins.
3. Business Model – WTF Do They Even Do?
NIACL sells general insurance — motor, health, fire, marine, crop, engineering, liability, aviation, and probably insurance for your office chair.
The model is simple:
- Collect premiums
- Invest the float
- Pay claims
- Argue with tax authorities
- Repeat
The problem? Claims + expenses > premiums.
Q1 FY26 numbers say:
- Incurred Claims Ratio: 99.76%
- Combined Ratio: 116.16%
Meaning: for every ₹100 earned, ₹116 walked out. Fantastic for customers, not so much for shareholders.
What saves NIACL is:
- A massive investment book
- Zero debt
- Government backing
- Monopoly-style presence in PSU & overseas government-linked business
Lazy business model? Yes. Difficult to disrupt? Also yes.
4. Financials Overview – Numbers That Tell You to Sit Down
Quarterly Comparison (₹ Cr, Consolidated)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 12,069 | 10,703 | 13,450 | 12.8% | -10.3% |
| Operating Profit | 206 | 98 | -74 | 110% | NA |
| PAT | 380 | 349 | 55 | 8.9% | 590% |
| EPS (₹) | 2.31 | 2.12 | 0.33 | 8.9% | 600% |
