New India Assurance Company Ltd (NSE: NIACL) Q3 2026 Earnings Call dated Feb. 02, 2026
Corporate Participants:
Unidentified Speaker
Girija Subramanian — Chairman-cum-Managing Director
Mary Abraham — General Manager
Chandra Iyer — General Manager
Analysts:
Unidentified Participant
Shobhit Sharma — Analyst
Presentation:
operator
Ladies and gentlemen, welcome to the conference call of the New India Assurance Company Limited arranged by Concept Investor Relations to discuss its Q3 and 9 month FY26 results. We have with us today Mrs. Girija Subramanian, Chairman cum Managing Director. Mrs. Kasturi Sengupta, Executive Director, General Managers and Chief Financial Officers among other esteemed management members. At this moment all participant lines are in listen only mode. Later we will conduct a question and answer session. At that time, if you have a question please press star n1 on your telephone keyboard. Please note that this conference is being recorded.
I would now like to hand over the floor to Mrs. Girija Subramanian, chairman cum Managing Director. Thank you. And I now hand over the floor to you. Over to you, ma’. Am.
Girija Subramanian — Chairman-cum-Managing Director
Good afternoon everyone. I am Girija Subramanian, Chairman Managing Director of the New India Assurance Company limited. I warmly welcome all of you to this earnings conference call to discuss our financial and operational performance for the third quarter and nine months ended December 31, 2025. Joining me on this call are Mrs. Kasuri Sengupta, Executive Director, our General Manager, Chief Financial Officer and other senior officials of the company. At the outset I would like to express our sincere gratitude to our shareholders, investors, analysts, policyholders and all stakeholders for for their continued trust and support. Your confidence and engagement remain a key source of strength for the company.
Before diving into the numbers I am proud to share significant third party validation of our financial stability. In December 2020 5:00am Best, a global credit rating agency revised our outlook to positive from stable while reaffirming our financial strength. Rating of B. Good and long term issuer Credit rating of B. This revision specifically recognizes our improving trend in enterprise risk management and the strengthening of our internal systems and audit controls. New India Assurance stands at an important phase of this journey carrying forward a legacy of over one or six years while steadily adapting to the evolving dynamics of the insurance industry.
Established in 1919 and nationalized in 1973 the company has played a foundational role in the development of India’s general insurance sector. Today, with a Pan India network of over 1,660 offices and an overseas presence across 24 countries, we continue to maintain leadership in the Indian non life insurance market. In terms of gross direct premium, our strategic focus remains clearly defined and consistent. We continue to prioritize risk weighted and sustainable growth, strengthen underwriting discipline, enhance claims efficiency and service quality leverage technology to improve operational effectiveness and preserve capital strength and solvency. These principles guide our decision making across business cycles.
During the quarter, the general insurance industry operated in a competitive environment with selective pricing pressures and elevated claims experience in certain segments. As per General Insurance Council data for December, the Indian general insurance industry reported a gross direct premium of Rs. 2.5 lakh crores registering a year on year growth of 8.69%. Against this backdrop, New India Assurance underwrote gross direct premium of rupees 32,229 crores translating into a market share of approximately 13.40 cross reinforcing our continued leadership position in the sector. Our diversified distribution architecture and balanced product portfolio continue to support stable performance while managing acquisition costs and risk concentration.
For the nine months ended FY26, our distribution mix comprised direct at 31.15%, brokers at 37%, agency at 24.39%, dealers at 6.9% and bank assurance at 0.56%. Our product mix remained well diversified with health and personal accidents at 48.16%, fire at 15.52%, motor own damage at 11.10%, motor third party at 13.04%, marine at 2.43%, crop at 0.37% and other segments accounting for 9.35%. Over the past few quarters we have taken deliberate steps to recalibrate our portfolio by exiting or restructuring select large corporate accounts where pricing did not adequately compensate for risk or capital consumption. This has been offset by an increased focus on retail SME and better quality risk.
Our operating philosophy continues to emphasize prudent risk assessment at the policy level, ensuring that growth is aligned with profitability and capital efficiency. The benefits of this approach are reflected in improved portfolio stability and controlled volatility. Turning to our financial performance, for the quarter ended Q3FY26, Gross written premium global was Rs. 11,680 crores while net premiums earned stood at Rs. 9,725 crores. The company reported a net profit after tax of Rs. 372 crores for the quarter compared to Rs. 353 crores in the corresponding period last year. From an operating Metrics perspective for Q3FY26, the net incurred claim ratio stood at 90.77%.
The commission ratio and expense ratio were at 10.78% and 16.44% of the net premium respectively. The combined ratio for the quarter was reported at 117.98%, solvency ratio stood at 1.81 times, remaining comfortably above the regulatory requirements and the return on equity for the quarter was 6.63%. For the nine months ended FY26, the Gross Return Premium Income Global stood at Rs. 35,555 crores. Net Profit After Tax for the period stood at rupees 826 crores. For nine months FY26, the Net Incurred Claim Ratio was reported at 99.63% with the Commission Ratio and Expense Ratio at 9.80% and 14.56% of Net Premium respectively.
The Combined Ratio stood at 124%, Solvency Ratio remained strong at 1.81 times and the return on equity for the period was 4.95%. While near term challenges such as claims inflation and competitive intensity persist, we remain confident that our continued focus on disciplined underwriting, operational efficiency and customer centric initiatives will support stable and sustainable performance. Our emphasis remains on on long term value creation while upholding the highest standards of governance and service excellence.
With this I conclude my opening remarks and now invite our General Manager of Finance, Mrs. Mary Abraham to take you through the financial performance in greater detail.
Mary Abraham — General Manager
Thank you Ma’ am and good afternoon all. So I’d like to take you through the financial performance of New India for the quarter and up to the quarter ended 31st December 2025 as well as the performance of New India as compared to the vis a vis the industry and the company strategy. Beginning with the financial performance for the quarter ended 31 December 2025, our gross return premium was 11,680 as compared to that of the previous year of 10,778 with a growth of 8.37%. And after the quarter our growth in gross written premium was 10.47% as compared to the previous year.
Coming to the incurred claims ratio it was 90.77% for the quarter ended December 2025 as compared to that of the previous year which was 94.49%. So there was a reduction of 4%. And this is as against the figures up to the quarter which stood at 97.38% for last year as compared to 99.62% for the current year. And this was mainly because of the half yearly increase in the ICR up to the half year I.e. 9-30-2025, the commission ratio on net written premium was 10.78% for the quarter as compared to 9.70% for the quarter of the previous year.
Operating expenses for the quarter of the current year was 16.44% as compared to 12.09% of the previous year and this was mainly due to the provision that was made for the wage revision as per the approval given by the central government and we are awaiting the notification. The combined ratio was 117.98% for the quarter of the current year as compared to 116.28% for the quarter of the previous year. This once again the increase is because of the wage revision provision that has been made. Coming to the underwriting result, it is a loss of 1736 crore and up to the quarter the loss was 7046 crores.
However, with the investment income that we were able to earn in the quarter of 2,280 crores and the interest, dividend and rent of 1200 crores and the capital gains of 1080 crores net of the other expenses of 174 crores, we were able to make a profit before tax of 367 crores for the quarter as compared to 116 crores for the quarter of the previous year. The underwriting results were mainly impacted by the provision towards wage areas and the retirement benefits of active employees where we had provided 759 crores for quarter three of the financial year 2526 and 1877 crores for the nine months ended 31st December 2025.
After making provision for tax, our profit after tax stood at 372 crores for the quarter of this year as compared to 353 crores for the quarter of the previous year. So it’s notable here that the PBT, the profit before tax recorded an increase of 215 crores 15% as compared to that of last year. Income from the fixed income securities and dividend income from equity showed a steady increase during the period while buoyant equity markets helped in realizing higher capital gains and besides, we also had monetized investments to help in the provision that we made for the wage revision.
Going on to some of the important ratios the important ratios the Solvency ratio the solvency ratio up to quarter 3 of 2526 is 1.81 times as compared to 1.9 times of last year. However, it’s notable that our solvency ratio increased from 1.79 times in quarter two of the current year to quarter three of the current year. Asset under management up to the quarter increased from 97,690 crores last year to 1, 890 crores in the current year. Technical reserve up to the quarter increased from 52,536 crores last year to 56,745 crores in the current year. Net worth up to the quarter increased from 21,516 crores to rupees 22,630 crores in the current year.
Fair value change account which was 24,991 crores last year up to the quarter reduced to 19,993 crores up to the quarter of the current year mainly because of the volatile market condition and also because of the monetization of investment that we had done to finance our wage revision provision and the return on equity which stood at 4.01% after the quarter last year increased to 4.95% up to the quarter of the current year. Coming to the segment wise performance for the quarter, Fyre line of business registered an increase of 4.06% and after the quarter the increase was 15.31%.
Marine had a very significant increase of 19.46% for the quarter with an increase of 9.01% up to the quarter. Motor including OD and TPE Premium had a minus growth of 0.89% for the quarter and up to the quarter. Also it was a minus figure of 1.18% and this was because of the conscious decision that we were making to realign some of our product product wise premiums where we did not want to continue in lines which were incurring losses, huge losses. Health including PA registered a good growth of 18.42% in the current quarter and up to the quarter.
2 the growth was good at 16.15%. Liability for the quarter increased by 21.42% while the liability premium after the quarter registered an increase of 8.5%. Engineering showed an increase of 16.46% for the quarter and it was an increase of 15.51% up to the quarter. Aviation there was a minus of 5.14% in the current quarter due to some premium which did not come in whereas up to the quarter there is a growth of 1.13%. All the other business lobs put together for the quarter there was a reduction of 26.14% mainly because the crop premium did not come to us and up to the quarter however there is a growth of 7.08% going over to the incur claims ratio segment wise the ICR for fhir improved from 54%.
Sorry not improved. It worsened from 54% to 65% for the quarter and up to the quarter it was 81% for marine marine again the ICR for the quarter was adverse at 119% which is mainly due to some very large claims that came in especially due to two of the ships that sank and the resultant GA claims, the fire claim that was there on one of the ships and a ship that sank resulting in a large marine cargo claim motor the ICR Both OD and TP put together the ICR for the quarter was 108% as compared to 102% last year and this was as mentioned earlier was because of the decision being taken to weed out some of the non viable product lines.
Health including PA registered a remarkable decline for the quarter from 103% to 91% and up to the quarter two there was a decrease from 103% to 101%. Liability two showed a reduction in the ICR for the quarter from 57% to 21% and up to the quarter it was a reduction of from 59% to 51%. Engineering the ICR for the quarter stood at 3% as against 37% of the previous year and up to the quarter The ICR was 52% as compared to 54% of the last year. Aviation the ICR for the quarter stood at 149% as compared to 106%.
This was mainly due to the Air India claim that we had and the ICR up to the quarter was 323% as compared to 78% of the last year and all the other lines of business. The ICR for the quarter stood at 52%. It was a reduction from last year’s figure of 76% and up to the quarter the figure was 79% as compared to 69% of the previous year. Coming to the performance of NIA vis a vis that of the industry, the general insurance industry grew by 8.69% in quarter three financial year 2526 whereas new India’s domestic gross direct premium income grew by 13.71% outpacing the industry growth and the year on year market share increased from 12.8% to 13.40%.
The growth momentum continued in December 2025 with company outpacing the industry growth. The market share segment wise Twinfire the Faya LOB while New India had a total premium of 4,028 crores. Out of the total market, the share of 22,769 crores which was a market share of 17.69%. For marine, our market share is 18.19%. In water we have a market share of 9.63%. In health and PA, we have a market share of 16.44%. For crop it is 0.03%. And all the other lines of business it is 17.12%. The company’s strategy. Our segment Mix health accounts for 48.16%.
Motor TP accounts for 13.04% of our total premium. Motor OD is 11.10%. Mariners stands at 2.43%. Fire is at 15.52%. The other crop is 0.37% and all the other lines of business is 9.35%. And as for our distribution mix brokers account for 37% of our total. Premium agency accounts for 24.39%. Direct business accounts for 31.15%. Bank assurance accounts for 0.56% and dealer business accounts for 6.90%. Key initiatives for the financial year 2526 we’re launching innovative new products with focus on retail and msme. We have entered new lines like parametric insurance. There’s emphasis on growth in segments other than motor and health where the competition intensity is high.
And this further impetus on risk management initiatives. And we have taken steps to improve the global credit rating. Key initiatives IT initiatives that have been taken. We have a call center offering services in seven regional languages. We have revamped our.
operator
Ladies and gentlemen, the management line has been disconnected. Please hold while we get them reconnected. Ladies and gentlemen, thank you for being on hold. The management has been connected now. Over to you, ma’. Am.
Mary Abraham — General Manager
Hello. Yes. Just continuing with the key IT initiatives. We have call center offering services in seven regional languages. We have revamped our website WhatsApp service in eight languages which offer policy and claim related services. We have AI and ML enabled chatbot for customer service claim automation efforts continue for faster claim settlement and customer portal offering a seamless user experience for standard products. Thank you.
operator
Can we open the floor? It’s done.
Mary Abraham — General Manager
Yeah, it is done. Yes. Yes.
Questions and Answers:
operator
Okay. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a Question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Rachna K. From simple. Please go ahead.
Unidentified Participant
Hello. Thank you for the opportunity few data and business related questions. First has the release in claims that. Is
Girija Subramanian
we can’t hear you clearly. Can you repeat this question? We can’t hear hear you clearly.
Unidentified Participant
I will repeat my question. Is it clear now?
Girija Subramanian
Can be a little louder.
Unidentified Participant
Okay. Has the reserve release I.e. iBNR also contributed to decline?
operator
Sorry to interrupt Rachna, we are unable to hear you. Can you please use the handset mode?
Unidentified Participant
Okay. Hello. Hello. Hello.
operator
Yeah, please go ahead.
Unidentified Participant
Yes, yes. My question was has the IBNR reserve release which has seen a decline from you know 547 around 85 crore. Has that also resulted into a decline in claims ratio or how should I read this? This is my first question.
Unidentified Speaker
Yeah, I can answer that question. The there is no particular decline per se as far as the core lines like motor third party are. However what happens is there are lines like crop where initially you set aside reserve in the form of IBNR and later when the claims are actually either paid out the corresponding IBNR comes down. So in this quarter we did see quite a lot of payments on our crop business which led to a reduction of ibnr. So if you exclude crop there has been. The IPNI estimates have been pretty consistent. Consistent with what it was during the first half and there is no specific release per se as far as the results are concerned.
Unidentified Participant
Okay, understood. My second question is on the investment book if we see the investment book has not grown so much. It’s grown only by 3%. But if we see our investment income and yield on investment they have improved quite a lot here on here. So if you could provide some color on that piece as well.
Chandra Iyer
Yeah, I’m Chandra here. So the yield has increased because of the. What Mary ma’ am has mentioned during the presentation. We have sold some bit of equity to realize profit and that is why the overall income on investment has increased. This is a one time thing which is done for accommodating the wage revision expense.
Unidentified Participant
Okay.
Chandra Iyer
Yeah.
Unidentified Participant
Okay. And on investment book if you could. Provide some color
Chandra Iyer
about
Unidentified Participant
the growth. The growth on investment.
Chandra Iyer
Yeah, because we have sold like I just mentioned so accordingly our to some extent it has come down the value Investment book value has not grown to the extent that was would have been there in previous quarters.
Unidentified Participant
Okay. And question. I understand we have exited a group group unprofitable business in group health.
operator
Sorry to interrupt Rachna we are unable to hear you.
Unidentified Participant
Hello,
operator
Your voice is muffling, ma’. Am. Can you please join the queue?
Unidentified Participant
Okay,
operator
thank you. The next question is from the line of Showbit Sharma from HTSC securities limited. Please go ahead.
Shobhit Sharma
Yeah, hi ma’, am, thanks for the opportunity. Hope I am audible. So my first question is on the growth side. So if I look at. On the motor side though you have mentioned that we are, we are recalibrating our portfolio and because of which we have slowed down. So can you help us understand how long it will take to stabilize and how should we see the growth trajectory from next year onwards? And if you can give us some color on the composition of our motor portfolio between the private car, two wheeler and commercial vehicle, how it has moved and what changes we have incorporated.
If you can give some numbers around it, that would be helpful. And lastly on the motor side of the business, if you can give us some composition in terms of the business which we have sourced in the form of new vehicles and old vehicles, that would be helpful. Why I wanted to know this is because on the health side though we have taken a number of measures. The result on the loss issue is quite visible. But on the motor side though I understand TP is a long tail but on the OD side ideally it should be visible if you have taken that kind of stance. So this is my first thing. Yeah.
Girija Subramanian
Thank you Shobit for your question. So the growth on motor is a little dented because of very strategic and very well thought out, you know, solutions for this loss making accounts that we have been suffering from in motor. So definitely because of, you know, us exiting from many of these segments in motor wherever we found the losses exceptionally harsh, we have growth has come down and this will continue for some time. Maybe we are trying to re, I mean work with the new dealers and new, other new partnerships. I think with that coming we should be able to make up for this growth in the next couple of quarters and at least it will show an upward trend is what we feel.
And the composition as of now is 46% in private car, 47% in commercial vehicles and the rest in two wheelers. So basically it is basically this particular restructuring also I think we will try to work towards a better composition on private car and more than the other two. So we are working towards a better composition on private car. And going forward I think in couple of quarters we should be showing some positive growth and profitability and reduction in ICR at least on motor.
Shobhit Sharma
Just to follow up on this, can you tell us how this mixes on the private car two wheeler cv, how this mix has evolved over the last couple of quarters or maybe last year, how we ended and where we are right now now.
Girija Subramanian
So on the commercial vehicles I think we had more on commercial vehicles earlier and private car was definitely less than 47%. Now I think we have increased our share on private cars and commercial vehicles has come down slightly. The two wheelers has by and large remained where it was. So in commercial vehicle also we have restricted our writing on Those greater than 40,000cc vehicles and there I feel because we have stayed away from those more risky segment there also there will be a turnaround that we see the next few quarters.
Shobhit Sharma
Any kind of benefit which you have seen on your portfolio because of the GST rationalization over the last quarter on the motor side specifically
Girija Subramanian
motor side actually. The private car growth is there in the private car segment because of the GST rationalization and I think that will continue and because year quarter on quarter as we grow we will see the growth in premium also because of that.
Shobhit Sharma
Okay, thank you. Another question is on the wage cost though in the notes to account the wage cost areas which is mentioned is around 1500 crores impact for the 9 months period. But the press release mentioned it is somewhere around 2500 crore. So can you help us clarify that? And lastly on the wage cost you have mentioned that there is a family pension revision which has happened up to 30% of. 30% of the cost. So can you give us some number how this cost would be and what kind of impact this number can have? Will it be this large like we have seen in the areas?
Girija Subramanian
Yeah, so actually the wage revision calculations is around 2500 on the whole for the. For the revenue account it’s around 1677 crores which comes to the in service employees and for the areas that have to be paid to them from August 22nd but the rest of it that is around 642 crores is on account of areas that are payable to our retired employees and that has been taken to the profit and loss account. So this is the breakup and as far as the FPS is concerned 30% that has not yet been. That is from the date the notification comes through.
Therefore it has not been included here and that would be roughly around 7800 crores. So that should complete the whole thing for us as far as page revision is concerned.
Shobhit Sharma
Ma’, am, anything on the earlier side is yet to be provided in our books or we have taken entire impact in this in the nine months period.
Girija Subramanian
No, no. We’ll have to provide for this. 700. 800 crores. 700 or 800 crores around that amount for the FPS in the last quarter. Because it cannot be done before the notification comes out. Notification is yet to come out.
Shobhit Sharma
So only the SPS portion is pending for provision. Because of the gadget notification.
Girija Subramanian
Yeah. That is prospective. That is why it’s not been taken into account.
Shobhit Sharma
Okay. Now coming to your investment book, we are seeing a significantly higher realization. You mentioned it was to offset the impact of the wage cost revision. So can you help us understand how much gains we have realized during the nine months and the current quarter and how should we think about it going forward as well?
Chandra Iyer
So the profit on sale that we have realized is around 4236 crores. And of this 2000 crores is pertaining specifically to the wage innovation provision. So the balances of a regular trading activity buy and sell activities according to the churning of the portfolio.
Shobhit Sharma
Ma’, am, how much of this was accounted for in the third quarter?
Chandra Iyer
It is entirely accounted in the third quarter.
Shobhit Sharma
And what’s the. What’s this number for nine months period.
Chandra Iyer
For the. For the quarter? It is
Girija Subramanian
2000.
Girija Subramanian
Yeah, yeah.
Chandra Iyer
Yes. Which one? 2280.
Mary Abraham
280 is investment.
Chandra Iyer
Just a moment.
Unidentified Speaker
Sir. It is 2000. Around 2000 crore from special activities.
Chandra Iyer
No, I think he’s asking what is the amount which is in this quarter. Q3.
Unidentified Speaker
It is around 1080 crore in all total. From equity.
Chandra Iyer
Yeah. 1080 crores for from profit on sale of equity in the third quarter. And overall it is for up to the third quarter. It is 4200.
Shobhit Sharma
And how should we think about it? Yeah. This is what I was asking. How should we think about it? Let’s say for FY27. Because if we are able to provide that FPS again in the fourth quarter. Let’s say. So how should we think about it? Our investment book will maintain that 2000 odd crores kind of run rate on the gain side.
Chandra Iyer
Yes, sir. That would be the. Our normal sale activity would be around 7 to 800 in the quarter plus the additional that is required to set off the wage revision provision which will be known once the notification comes. And when the provision is required to. Be made, we will be planning accordingly depending on what is our income that we have already generated from all our entire portfolio up to that point of time.
Shobhit Sharma
Ma’, am, one of your portfolio company wherein you have a significant holding has just gotten CB approval for ipo. Do we have a plan to participate in the IPO for that.
Chandra Iyer
That is in the future. So we will look into it when it comes up.
Shobhit Sharma
Okay, ma’. Am. Lastly on the taxation side, we have not seen we have anything provided for in terms of the income tax onto your. Onto your PNL for the 903s. So can you help us understand why is it so and how should we think about it going forward?
Mary Abraham
No, this is because the advance tax is being paid. So. And so because of that we don’t need to. We are paying adequately. Advanced tax is being paid and that is why we are not paying. Providing for. Yeah. Plus the write off that we have been doing on the bad debts as per our board approved policy. That has also given us some relief and some cushioning because of which tax has come down.
Shobhit Sharma
So ma’, am, for this financial. Should we assume a negligible tax rate for you?
Mary Abraham
Yes.
Shobhit Sharma
And what should be a long term, kind of a long term tax rate going forward from FY27 onwards.
Mary Abraham
It would be 17.472%. This is the mat tax rate.
Shobhit Sharma
Okay. Okay. And lastly ma’, am, coming on to the
operator
interrupt. Mr. Sharma, please rejoin the queue for more questions.
Shobhit Sharma
Sure. Thank you. And all the best.
operator
Thank you. Ladies and gentlemen. A reminder to all, if you wish to ask a question, please press star and 1. The next question is from the line of Pawan Nandalal Sachdev, an individual investor. Please go ahead.
Unidentified Participant
Hello. I hope. Am I audible?
Girija Subramanian
Yes.
Unidentified Participant
Yeah. Thank you for this opportunity. So my question is which segment contributed most improvement in the claim based in this quarter? And it would be helpful if you quantify the. Your highest.
Girija Subramanian
What? What did you ask? Which is a segment. That.
Unidentified Participant
Which segment contributed most to the improvement in the incurred claim ratio?
Girija Subramanian
The health.
Unidentified Participant
Incurred claim ratio. Okay.
Girija Subramanian
The health segment contributed immensely to the improvement because it forms around 48% of our book. And the incurred claim ratio has come down by 2 percentage points up to 9 months. And for the quarter it has come down quite drastically from 103 to 91%.
Unidentified Participant
Okay. And this 91% of our net income claim ratio, is it sustainable? Sustainable on a run rate basis from. Now on
Girija Subramanian
it is. We are working towards strategy where we are, you know, where the group GMC accounts are concerned. We are either pricing them and negotiating to get closer to the more right price or we are exiting from GMCs that do not give us adequate pricing and going for accounts where pricing is more fair and more adequate. And apart from that we have increased our, you know, our fraud anti fraud activities like we increase inspections from 30 to 50% compulsory and we’ll be increasing it even more in the quarters to come. We have got our own doctors.
We are on the way of hiring new doctors. So this in this activity will go on intensifying. We are in the threshold of buying a new software for fraud analysis. And already the vendor selection process processes on. And as soon as I think in a three to four months time we would be able to bring in that fraud monitoring software which would make this entire activity even more automated. And I think therefore the sustenance of this, this model is going to definitely be there going forward.
Unidentified Participant
Okay, understood. And can you comment on run rate loss ratio in motor and health excluding one off and CAT losses.
Girija Subramanian
On health we are aiming towards. We are aiming towards a loss ratio of around 98 to 100%
Unidentified Speaker
overall.
Girija Subramanian
And. For motor also we are trying to bring the loss ratio to around 100 304.
Unidentified Participant
Just one last question from my side. How has market share trended across a motor, health and non motor segment in Q3 and where do you see the strongest competitive position?
Girija Subramanian
We had done well on the market share, you know side wherein I think we have like Fire, Marine everywhere. We are 17 18% market share including health and PA which is a very big portfolio. And with the Sahi companies being there even that we have managed around 15.44% which is quite creditable. Going forward we see a similar kind of market share across these segments. Maybe in the others like in the miscellaneous side. We expect to see more market share in the miscellaneous side. SME and parametric and such other.
Unidentified Participant
Okay, thank you. That’s it from my side.
operator
Thank you. The next question is from the line of Tanay Kothari from AUM Capital Private Limited. Please go ahead.
Unidentified Participant
Yeah good afternoon to the management team and thank you for the detailed presentations. I just have a couple of questions. The company has provided around 2026 crores towards wage division this quarter including 824 crores for retired employees. Is this provision now fully reflective of the expected liability or investors should brace for further adjustments?
Girija Subramanian
It is already provided for completely. So FPS is one thing which as we clarified that is going to be taken care of in the last quarter. But all other things are already provided for. Till this Q3 is already completely provided for us there’s going to be no enhancement here.
Unidentified Participant
And my second question is management indicated focus in segment beyond motor and health due to competitive intensity. So big segments in Fire, marine and engineering can deliver profitable growth. And what is your medium term mix target?
Girija Subramanian
Fire has always been a mainstay and we’ve been leading this market in fire. We’ll continue to do that and FIRE is an area where we are definitely ahead of the market and we’ll continue to be there. Marine is an area where New India has traditionally been leading, especially in marine health. We’ll continue to do that and only for this quarter, I think, because because of a couple of unusual losses, we’ve had this loss number. Otherwise Marine has also been performing quite well for us as far as the health and pa. The risk selection, the fraud monitoring exercise that we have, strategy that we have employed has paid off for us as we can see.
And we’ll continue on the same lines. And for the others where we have miscellaneous and other lines like parametric surety, we already are leading the market and we’ll continue to have this major presence in the market and continue to have our mainstay there.
Unidentified Participant
Yes, ma’. Am. Despite strong fat growth, ROE remains modest at around 5%. What are the key levers management is focusing on to structurally improve roe? Whether it is underwriting discipline or expense control or capital efficiency.
Girija Subramanian
So basically there are all of these parameters have contributed to this, to this growth. Yeah, actually we’ll elaborate on this.
Unidentified Speaker
Yeah. Coming to ROE right now it is in the single digits. The focus is to bring it up to the double digits and the primary lever will be to reduce the ic. The results are quite sensitive to the swings in ICR with every percentage improvement creating quite a substantial improvement in the pat. So the aim is to improve the ICR in order to increase the profitability and thereby increase roe. So the first goal is to reach double digit rv.
Unidentified Participant
Okay, so the budget did not include major direct support for the general insurance sector though it introduced tax extension on interest awarded in motor accident claims. So do you view this change in the broader policy environment for general insurance in the budget, especially in terms of improving penetration, competitiveness or the pricing dynamics? Sir.
Unidentified Speaker
SME focused.
Girija Subramanian
Yeah. So basically New India has declared this year as the year of SME. And we are totally committed to seeing that we are able to give support to the large population of SMEs which form around 1.6 crores. And we want to see that we are absolutely in line with the government’s intention to see that they are financially included and the budget that has given now so many enablements for the MSME sector. So this opens up a lot of insurance opportunities for us where credit is concerned, where overall protection for the SME is concerned, and also the expansion into Tier 3, Tier 2, Tier 3 cities.
So I think all of this will contribute to New India expanding its book on msme. And already we are actively engaging in awareness programs for MSMEs across the country. We are licenseing with agencies like Dunn and Bradstone and such media agencies to ensure that we have these shows where we bring in a lot of awareness for MSMEs. MSME book has also grown by 36% up to December 25th. And we know that this is going to grow in the months to come.
Unidentified Participant
Okay, ma’, am, thank you so much. Thank you.
operator
Thank you. The next question is from the line of French Jane, an individual investor. Please go ahead.
Unidentified Participant
Hello. Hello. Thanks for the opportunity, ma’. Am. So I have a few questions. The first, the first video on the segmental wise performance. So can you throw some light on a segment wise performance, especially on other business? Because we, if you see we have degrown by 26% on quarter on quarter basis. So what exactly happened in this quarter where we declined 26% that much
Girija Subramanian
crop. Insurance mainly because of crop we have grown by degrown by 26%. That is in the other segment that is mainly because of crop insurance. Basically we don’t write crop on a direct basis in the market. We used to write crop as a reinsurer for Agriculture Insurance Corporation this year because of some regulatory issues agriculture insurance couldn’t seed US business on a reinsurance basis. And therefore there we have degrown significantly because. Yes,
Unidentified Speaker
and just to put some numbers, the others include both crop and the miscellaneous segment crop the premium has come down from 180 crores last year same quarter to 5.7 crores. Whereas in the miscellaneous others segment which is a focus area, the premium has gone up from 246 crore to 309 crore which is an increase of close to 26%. So because the crop premium came down overall basis you are seeing the number of -26. Otherwise if you see within that excluding crop the business has grown by 26%.
Unidentified Participant
Okay. So my next question would be on the if we if you exclude the wage revision impact, what would be the combined operating ratios look like for a Q3 or. Or for the 9M for this this year?
Chandra Iyer
Yes.
Girija Subramanian
Yeah. Without the impact of the wage revision the CoR would have been for the quarter would have been 110.13% as compared to. As compared to 117.98 which is including the wage revisions is for the quarter and up to the quarter with the wage revision the COR was 124%. And without the wage revision provision it would have been 117.6%.
Unidentified Participant
Okay, and my last question is on their new business line like you are entering into a new business line like for a parametric. So can you just give me some roadmap or what are your plans and what are we currently standing at? Some numbers, maybe some ballpark numbers, something.
Girija Subramanian
Yeah. So basically parametric insurance is a new type of insurance which is, which will take time to pick up in India because it is, it’s, it’s not exactly on the principles of insurance like wherein there’s a threshold fixed for a particular weather related peril and once the threshold is breached then everything from ground up is paid. So, so whether the person suffers from a loss or not, it is paid. So this involves a lot of active collaboration with fintech companies, insuretech companies who understand weather related perils, who understand the kind of portfolio that we are ensuring and then they are able to fix up a threshold in a way that it’s not everyday issue, it’s not everyday loss.
So basically this is something that is slowly picked up. We have done some 10 or 12 contracts till now, but I think the days to come this is being sought after both from a penetration agenda because the government wants that penetration gets done faster and quicker. And parametric ensures that penetration can be done faster because you have to. It is possible to issue policies for a large number of people at one go from a digital interface and also to settle claims in no time through the digital interface wherein people get paid the claims in hours, in minutes.
So this is something wherein the claim reaches insured within a few hours of the catastrophe, whereas the normal claim procedure takes a lot of time, lot of processing and all of that. So this is something that eases the whole burden of claim processing. And therefore this is going to be one of the very happening lines of businesses going forward. But as of now, since it is yet to develop, it is close.
operator
Ladies and gentlemen, the management line has been disconnected. Please hold while we get them reconnected. Ladies and gentlemen, thank you for being on hold. We have management connected now. Over to you, ma’. Am.
Girija Subramanian
Yeah, so as I said that though the pickup is not very fast, but it is one of the most sought after products. People wanting to know more and more about it, many people going for it also and therefore we see a very big traction for this in the coming year. It.
Unidentified Participant
Okay, okay, thank you, thank you. That’s all from my side.
operator
Thank you very much, ladies and gentlemen. That was the last question. I now hand the conference over to Mrs. Kerija. Subramanian CMD New India Assurance Co. Ltd. For closing comments. Over to you, ma’. Am.
Girija Subramanian
Thank you. Before we conclude, I would like to extend my sincere gratitude to all our stakeholders for joining us today and for your continued confidence in New India Assurance. Your support plays an important role in strengthening our resolve to uphold the highest standards of service, governance and operational excellence. I would also like to acknowledge the unwavering commitment of our employees across India and our overseas offices. Their dedication and professionalism continue to be the backbone of this institution enabling us to serve millions of customers with consistency and care. Most importantly, we remain deeply grateful to our policyholders who have placed their trust in New India Assurance for over one, not six years.
Their confidence inspires us to continually improve, innovate and deliver on our promises with sincerity and accountability. As we move forward, the management team and I reaffirm our commitment to sustainable growth, prudent risk management and consistently enhancing our service standards. We will continue to work towards strengthening our operational capabilities, enhancing our digital initiatives and contributing meaningfully to the development of the insurance sector and the broader economy. Thank you once again for your time and participation. We look forward to your continued engagement.
operator
Thank you very much, Ma’. Am. On behalf of New India Assurance Company Limited that concludes this conference. Thank you all for joining us today. And you may now disconnect your name.
Unidentified Speaker
Thank you.