Public Sector General Insurance Companies (PSGICs) in India earned a combined profit of Rs 1,066 crore in Q3FY25, marking a significant financial turnaround from historically reported losses. The PSGICs had combined losses of over Rs 10,000 crore in 2022–23.
This remarkable turnaround in Q3FY25 wherein all individual PSGICs became profitable was a result of reforms leading to improved risk-management practices, loss-control initiatives, technology adoption, new product development, improved customer services, and portfolio diversification.
United India Insurance Company Ltd (UIICL) reported a profit in Q3 of 2024-25 after seven years while Oriental Insurance Company Ltd (OICL) and National Insurance Company Ltd (NICL) began reporting quarterly profits in Q4 of 2023-24 and Q2 of 2024-25, respectively.
Notably, New India Assurance Company Ltd (NIACL) has continuously made money and held its market leader position. In Q3FY25, NIA’s net profit dropped by almost 51% to Rs 353 crore.
This turnaround came on the back of capital infusion of Rs 17,450 crore in these PSGICs between 2019–20 and 2021–22 in order to enable these businesses to implement structural changes, improve operational effectiveness, and return to profits again.
PSGICs are focusing on providing top-notch insurance products and services, guaranteeing long-term viability and improving customer satisfaction, all the while attaining growth to achieve “Insurance for All” by 2047.