PSU general insurers swing to ₹10,051-crore loss as solvency ratio deteriorate

The four public sector general insurers swung to a combined net loss of ₹10,050.79 crore in 2025-26, from a net profit of ₹802.87 crore in the previous year, reversing the improvement seen over the preceding two years, according to latest data from the General Insurance Council (GIC).

The deterioration was accompanied by a sharp widening of underwriting losses. The four insurers’ combined pure underwriting loss increased to ₹30,892.09 crore in FY26 from ₹18,366.41 crore in FY25. Their combined ratio also rose to 134.37% from 121.23%. A combined ratio above 100% means claims and operating expenses exceeded premiums.

Solvency ratio measures an insurer’s capital cushion against its regulatory capital requirement, while the combined ratio measures underwriting performance by comparing claims and operating expenses with premiums.

National Insurance Company reported a net loss of ₹2,533.71 crore, Oriental Insurance Company ₹4,061.39 crore and United India Insurance Company ₹4,839.28 crore. New India Assurance was the exception, reporting a net profit of ₹1,383.59 crore.

Three of the four insurers had negative solvency ratios in FY26. National Insurance’s solvency ratio stood at -1.11, compared with -0.67 in FY25; Oriental Insurance’s widened to -1.63 from -1.03; and United India’s to -1.36 from -0.65. New India Assurance remained positive, with its solvency ratio at 1.84, compared with 1.91 a year earlier.

The PSU insurers had reported a combined net loss of ₹6,740.01 crore in FY22 and ₹10,592.64 crore in FY23, before moving to a profit of ₹100.37 crore in FY24 and ₹802.87 crore in FY25.

The accumulated losses of National Insurance, Oriental Insurance and United India also increased. Their combined carry-forward losses rose to ₹35,959.73 crore at the end of FY26 from ₹24,513.44 crore a year earlier, an increase of about 47%, according to GIC data.

Private general insurers, meanwhile, remained profitable in FY26. The segment reported a combined pure underwriting loss of ₹13,657.92 crore, but posted a net profit of ₹8,580.29 crore. Its combined ratio stood at 111%, according to GIC data.