Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
New India Assurance Company Ltd (NSE: NIACL) Q4 2026 Earnings Call dated May. 14, 2026
Corporate Participants:
Girija Subramanian — Chairman-cum-Managing Director
Mary Abraham — General Manager
Analysts:
Unidentified Participant
Shobhit Sharma — Analyst
Presentation:
Operator
Welcome to the conference call of the New and Assurance Company Limited arranged by Concept Investor Relations to discuss this Q4FY26 results we have with us today Mrs. Girija Subramanian, Chairman from Managing Director, Mr. S. Shivashankar, Executive Director, General Managers and Chief Financial Officers among other esteemed management members. At this moment all participant lines are in the listen only mode. Later we will conduct a question and answer session. At that time. If you have a question, please press star and one on your telephone keypad.
Please note that this conference is being recorded. I would now like to hand the floor over to Mrs. Kirija Subramanian, chairmanaging Director. Thank you. And 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 fourth quarter and financial year ended 31st March 2026. Joining me on this call are Mr. S. Shivashankar, Executive Director, our General Manager, Chief Financial Officer and other senior officials of the company. Joining. Before I begin, I would like to express my sincere appreciation to our shareholders, investors, policyholders, analysts and all stakeholders for their continued engagement and support throughout FY26.
Their continued confidence reinforces our commitment towards responsible growth, operational resilience and service excellence. We continue to maintain strong financial credentials reflected in its CRISIL AAA Stable rating which represents the highest level of credit quality during the year. AM Best also revised the company’s outlook to positive by reaffirming our financial strength rating of B Good. Recognizing continued strengthening of our enterprise risk management framework, internal systems and governance processes.
New India Assurance continues to be identified by IRDAI as a domestic, systematically important insurer consecutively for the fifth year reflecting the company’s scale, market significance and systemic importance within the Indian insurance sector. So as we navigate through FY25 26, the Indian economy continues to be a beacon of resilience projected to maintain a robust growth of approximately 7.5% driven by strong domestic consumption and a revitalized MSME sector for the insurance landscape. This year marks a historic inflection point driven by the Sabka Bhima Sabki Raksha Amendment Act 2025 which has ushered in 100% FDI and significant regulatory relaxation propelling us towards a vision of insurance for all by 2047.
The general insurance industry operated within a highly competitive landscape throughout the period characterized by specific pricing pressures and arise in claims across various segments. According to data from the General Insurance Council, the sector maintained steady growth momentum to the end of FY26 and the start of of FY27 even as pricing discipline remained a challenge. Consequently, the industry’s gross direct premium income reached roughly Rs 3.36 lakh crores for FY26, marking a year on year increase of 9.3%.
As a market leader, the New India Assurance has harnessed this momentum, achieving a stellar 10.9 year on year gross domestic premium, growth in the fiscal and achieving GD or a Gross Domestic Premium of Rupees 42,822 crores. The Indian business grew faster than the industry and the company’s market share increased from 12.56% to 12.74% during the year compared to the same period last year. The profit after tax improved by 40% for the year and 61% for the fourth quarter of FY26. Our focus remains steadfast on bridging the protection gap through innovative tech enabled products like parametric covers and tailored MSME solutions, ensuring that as India marches towards becoming a $5trillion economy, New India stands at its most trusted financial partner.
The global insurance landscape in 2026 continues to be shaped by a complex web of geopolitical shifts. Ongoing regional conflicts in the Middle east and Eastern Europe have moved beyond localized disruptions, triggering secondary impacts that the entire industry must navigate through. For insurers, this volatility manifests in two primary ways increased claim costs driven by supply chain led inflation and a constricted global reinsurance market. As logistics routes are rerouted and energy prices fluctuate, the cost of reinstatement of for industrial assets has risen, necessitating a more disciplined approach to underwriting and risk management.
Furthermore, these tensions have heightened the demand for specialized protection. We are seeing a fundamental shift where war and political violence covers are no longer viewed as optional extras but as core components of a resilient risk management strategy. As India’s premier multinational insurer, New India Assurance is leveraging its robust balance sheet and international presence to provide stability to our corporate partners amidst this global uncertainty. In direct response to these evolving risks, New India Assurance has launched the war cover for the fire segment.
Historically, standard fire policies in India excluded losses from war and hostilities. By introducing this dedicated add on which integrates with our Bharat Lagu, Uddyam Suraksha and Business All Flexi Suisse. We are filling a vital protection gap for large scale industrial units and infrastructure projects complementing on our war cover. In a landmark move towards the national self reliance and securing India’s strategic interests, I am pleased to highlight the operationalization of the Bharat Maritime Pool formed by the Indian non life insurers backed by the Government of India’s sovereign guarantee.
In an era where global maritime routes are increasingly susceptible to geopolitical shifts and international reinsurance volatility, this pool serves as a critical shield for our national fleet. As a lead insurer, New India Insurance is at the forefront of this initiative providing much needed indigenous capacity for protection and indemnity and hull risk. By localizing this capacity we are reducing our dependency on overseas markets and ensuring that Indian ship owners have access access to stable uninterrupted cover even during global crises.
This initiative is not merely a business expansion, it’s our long standing commitment to the Atman Nirbhar Bharat vision ensuring that the lifelines of our nation’s trade remain protected by a robust India led insurance framework. Turning to our financial performance for the full financial year FY26 and the quarter ended Q4FY26 for the full year the gross return premium was Rupees 47,174 crore against the gross written premium for FY25 which was at Rupees 43,618 crores. Net premium earned was Rupees 38,462 crores as against FY25 where it was Rupees 35,368 crores and net profit after after tax was Rupees 1,384 crores against the net profit after tax for the year FY25 which was at Rupees 988 crores.
For the quarter ended Q4FY26 the gross written premium stood at Rupees 11,619 crores as compared to 11,433 crores for the Q4FY25. Net premiums understood at Rupees 9,969 crores as compared to Rupees 9,306 crores for FY25 we reported a net profit after tax of Rupees 558 crores for the quarter Q4FY26 as compared to Rupees 347 crores for Q4FY25 last year from an operating metrics perspective for the full financial year FY26, the net incurred claim ratio stood at 98 point of the net earned premium. The commission ratio and expense ratio were at 9.75% and 14.15% of the net written premium respectively.
The combined ratio was reported at 122.57%. The company was able to absorb the full impact of wage revision and revision in family pensions amounting to rupees 3525 crores during the year. The entire impact of revision in the family pension from 15% to 30% as notified by the government amounting to rupees 597 was absorbed during the fourth quarter. The adverse impact was partially offset by better investment returns during the year. The combined ratio for the year adjusted for the wage revision related impact was 116.67% compared to 115.34% in the previous year.
The incurred claim ratio was impacted due to the higher loss ratio in the motor third party segment where the long awaited premium revision has not yet happened. While quote awards have been rising year on year, the unfortunate loss of Air India in the aviation segment also contributed to higher inferred claim ratio in the current year compared to the previous year. The health segment witnessed an improvement in incurred loss ratio from 101.3% in FY25 to 99.09% in FY26. Through increased monitoring of the ICR, audit of claims and PPA monitoring, the solvency ratio stood at 1.84 times remaining comfortably above the regulatory requirement of 1.5 times.
Our stable performance is driven by a balanced product portfolio and a multi channel distribution strategy which effectively manages risk concentration and acquisition expenses. Our business mix remains highly diversified. Health and personal Accident represents the largest share at 47.57% followed by fire at 14.62% and a combined motor portfolio of 25.81% comprising 14.12% third party and 11.69% own damage. Marine insurance accounts for 2.38% while the remaining balance is distributed across other niche segments.
The retail health insurance segment continued to witness healthy demand momentum during the year driven by increasing awareness, medical inflation and rising insurance penetration. The health retail segment has grown at 7.7% indicating a strong push of the company’s vision towards retail segments and the motor segment which is critical for the industry exhibited a clear two phase performance. Vehicle sales were muted in H1F526 with private cars and two wheelers growing by only 4.6% and 3.2% respectively.
However, post GST rationalization, the H2FY26 saw the sharp acceleration. Private cars grew at around 17.8%, two wheelers surged 21.5% and Q4 alone recorded 16.3% and 24.7% growth. This strong momentum in new vehicles registrations significantly boosted human motor od new business in the second half. New India’s performance in motor this year reflects a deliberate and strategic recalibration of its motor portfolio. While the industry continues to see high volume, New India has recorded marginal growth by design.
We are currently undergoing a churning of a motor book, consciously shedding high loss ratio accounts and segments that do not meet our underwriting benchmarks. This quality over quantity approach is essential to counter the persistent pressure of stagnant third party rates and rising claim costs. Our focus has shifted towards selective underwriting in the own damage space, targeting retail customers and a low risk fleet segment where we can leverage our brand strength and by optimizing our portfolio mix and emphasizing digital first renewals, we are building a more resilient motor engine that contributes to our long term goal of improving the combined ratio ensuring that New India remains a symbol of stability and fiscal discipline in a volatile market.
Reflecting on our strategic roadmap, I am proud to report that our focus on the NSME sector has yielded exceptional results. Having declared the previous year as a year of the msme, we successfully deepened our penetration into this vital engine of the Indian economy, achieving a remarkable 25% growth in the MSME premium. This growth was driven by our commitment to simplifying insurance for small businesses through products like Bharat Lagu, Uddyam Suraksha which provided the comprehensive protection small enterprises need to scale confidently.
Building on this success, we have entered the current year with a clear mandate to Go retail. It is important to note that this is an expansion of our horizons while we continue to maintain our aggressive focus and leadership in the corporate space. Our Go Retail campaign is designed to bring that same intensity to the individual customer segment by leveraging the digital infrastructure distribution networks strengthened during our MSME campaigns. At Brazil, the broker channel formed 43.43% of our portfolio agency forms 27% and we aim to grow in the agency and other alternate business channels focused on retail.
Our distribution mix is judiciously aligned towards agency posp, bank assurance and direct digital channels while protecting quality corporate business. This dual track strategy, protecting both the businesses and the individual will diversify our risk profile and drive high margin granular growth that delivers sustainable value for our shareholders. Long term IT infrastructure revamp has already been initiated and is nearing completion. Digital marketing and sales implemented for few health products at the pilot stage and the same will be extended to other products and lines of businesses too.
The company has already automated the survey appointment and digital survey report. All the retail products of the company are available online. Mobile super app for customers, intermediaries and surveyors have been implemented. The company additionally uses AI ML tools in our daily transactional work. FY26 was an important year for the company from both an operational and strategic standpoint. During the year we continued to strengthen underwriting business discipline, recalibrate our portfolio mix and enhance digital integration across underwriting, claims servicing and customer engagement processes to improve operational efficiency and service delivery.
Despite elevated claims experience in certain segments and a competitive pricing environment, we remain focused on preserving profitability, solvency strength and customer service standards while continuing to focus on sustainable long term growth. Supporting these initiatives is the consistent guidance and close monitoring by the Department of Financial Services. This collaborative oversight has been instrumental in sharpening our focus on operational efficiency and institutional discipline. By aligning with the rigorous performance benchmarks, we have streamlined internal processes and optimized resource allocation.
This focus on efficiency is a dual commitment, providing faster claim settlements for our policyholders and a more transparent, professionally managed organization for our investors. The Company continues to maintain a strong balance sheet and a healthy solvency position, providing the financial flexibility required to support future growth while effectively navigating underwriting volatility and evolving regulatory requirements by way of extensive corporate governance. With these opening remarks concluded, I would now like to hand over the floor to our General Manager for Finance who will provide a detailed overview of our financial and operating performance for the fourth quarter and the full financial year FY26.
Thank you,
Mary Abraham — General Manager
Thank you Ma’. Am.
Girija Subramanian — Chairman-cum-Managing Director
Good afternoon
Mary Abraham — General Manager
Everyone. The financial performance that is being presented is that of our global performance. By global we mean our Indian operations and the foreign branches and the gross written premium for the year showed an increase, a growth of 8.15%. Please note that our gross domestic premium however grew at 10.9% which is much higher than the industry growth rate of 9.3% and the gross driven premium globally for the quarter grew at 1.63%. This muted growth was because of the high competitive rates that were there in the market, especially for property insurance.
From the second half onwards, the net written premium for the financial year 2526 stood at 39,331 as against 36,335 crores in the financial year 2425. The net earned premium to that 38,462 thousand crores for the financial year 26 as compared to Rupees 35,368 crores for the financial year 2425. The INCRA claims ratio for the year ended 31st March 2026 stood at 98.65% as against 96.61% of the previous year and this is because of the aviation claim we had, the unfortunate Air India crash claim which was there and also a few NATCAT flood claims which were there which could not be which were not fully recovered under the insurance.
We also had a lot of marine claims and this was the reason for the increase in our ICR during the year. For the quarter two we saw an increase in the ICR from 94.43% to 95.85%. Commission as a percentage of the net written Premium reduced from 9.95% in the financial year 2425 to 9.75% in the financial year 2526 and for quarter four there was a substantial reduction from 11.717% to 9.53%. The operating expense as a percentage of the net written Premium increased from 10.21% in the financial year 2425 to 14.15% in the financial year 2526.
The main reason for this being the provision the wage revision expenses, the government had notified a wage revision and the arrears and the other related expenses had to be made and provided for and this was the reason. Similarly, in quarter four there was a substantial increase in the operating expense as a percentage of the net written premium from 5.85% to 12.95% because the family pension scheme and certain other wages related expenses and provisions were also made in quarter four, the combined ratio for the year ended 25:26 stood at 122.57 as compared to 116.78% of the previous year.
The main reason for this worsening of the combined ratio being the wage revision and the other related expenses that were paid during this year and for the quarter two the combined ratio worsened from 111.46% to 118.34% the underwriting results but without the impact of the wage revision our combined ratio would have been 116.67% as compared to 115.34%. Because last year too there was a small provision made which we have excluded for this comparison purpose. The underwriting result yes, there was a loss of 8882 crores as compared to 6124 crores last year.
Because of the increase in the incurred claims as well as the provision for the revision expense, investment income stood at 11,112 crores as compared to 8,034 crores last year. There was also part of the investment which was monetized for the purpose of supporting our wage areas. The profit before tax increased from 1034 crores in 2425 to 1262 crores in the year 2526. And for the quarter there was a reduction from 526 crores to 437 crores. The main reason being that we had absorbed a major portion of the family pension areas in quarter four, the profit after tax.
So a profit after tax is 1384 crores for the year ending 31st March 2026 which is a 40% increase over the profit after tax of the previous year at 988 crores. And for the quarter for quarter four our profit after tax stands at 558 crores which is an increase of 61% on the profit after tax of the previous year of 347 crores. So the underwriting results were mainly impacted by the provision that was made towards wage arrears and the retirement benefits of the active employees which were taken to the revenue account and the other income and expenses were impacted by the wage areas and the retirement benefits of the retired employees.
So the amount that was taken to the revenue account towards this was 436 crores for quarter four and 2314 crores for the entire year 2526. And the portion of the wage area that was taken to other income and expenses was 569 crores in quarter 4 and 1211 crore for the whole year and but for this as mentioned earlier, without the weight revision our combined ratio would have been 116.67%. Just to follow some of the important ratios, combined ratio is 122.55% as compared to 116.78% of last year. Our solvency ratio is 1.84 times as compared to 1.91 times in year 2425.
The main reason for this fall being the wage revision expenses that we have to bear this year. Asset under management for the financial year 2526 stands at 96,652 crore crores as compared to 98,045 crores in the financial year 2425. This is because of some of the investments that were monetized and also because of the volatility in the market. Technical Reserves increased from 53,177 crores in the year 2425 to Rupees 57,620 crores crores in the year 2526. Net worth increased from Rupees 21,884 crores in 2425 to Rs.
23,619 crores in 2526. Fair value change reduced from 21,406 crores to Rupees 13,878 crores. The reason for that being the market volatility and fall in the investment value. We also had some monetization of the investment being made. Return on Equity increased from 4.59% in 2425 to 6.08% in 2526. We next look at the segment wise performance of the company in terms of the gross return premium. This is once again on the global so in the fire line of business There was a 10.76% increase in the FHIR premium for the entire year whereas quarter four saw a reduction of 4.33%.
The reason for this being that the market was highly competitive, the rates literally crashing in the property market. In the marine lob we registered an increase in premium of 11.43% for the entire year and for the quarter we had a substantial increase of 20.26%. Motor OD saw a muted growth of 2% for the entire year whereas for the quarter there was a significant increase of 11.48%. And one of the reasons for the growth being low in Motor OD was the conscious decision of the company to realign some of the focus on the profitable lines of segments and to weed out those segments which are not very profitable.
Motor TP saw a very very negligible growth of 0.13% for the entire year. The reason being that the much awaited GDP premium increase has still not happened which we are waiting for. Whereas the quarter saw a growth of 2.89%. Health and PA put together saw a substantial increase of 12.62% for the whole year with a 2.58% growth in quarter four as compared to quarter four of the previous year. Here in crop line of business there was a reduction because we did not accept the inward reinsurance on crop and in the other lines of business put together there was an increase of 12.48% for the entire year with a growth of 2.03% for quarter four as compared to quarter four of 2424.
So overall RGWP grew by 8.15% for the entire year with a 1.63% growth for quarter four. The low growth as I mentioned earlier is because of the competitive rates that prevailed in the property market incurred claims ratio loby. In the FHIR nob the Inca claims ratio for the year 2526 stood at 76.54% as compared to 71.20% in the previous year. The reason for this worsening of the ICR was mainly because of quite a number of small natcat pedals clean which were not fully absorbed by our reinsurance and this affected and also another reason for the increase was the growth in the fire was not as much as anticipated because of the fall in the prices marine claims.
The ICR worsened from 53.74% last year to 86.74% in 2526. The reason for this being a number of claims that we had a large number of cargo claims as well as a general average claim from one particular client as well as a prior to one of the ships where the entire cargo was damaged and this was insured with us. So these were some of the reasons why the marine cargo marine claims have worsted. Motor roading claims worsened from 104.22% last year to 108.85% in 2526. Here too, though, conscious efforts are being made to correct the composition of our segment.
This would be it would take about a year or so to see the impact of the strategic decisions that we have taken in the segment in this line of business. Motor TP also saw a worsening of the ICR from 108.17% to 113.86%. The main reason being that the premium in TP has not gone up. Awards have been increasing awards given by the courts and the court being giving awards as per the latest circumstances even for the old claims that have been registered. So these are some of the Reasons Health and PA has improved from 100.98% in the financial year 2425 to 99.05% which is a significant reduction due to the very good monitoring of the claims and the TPA and the increase in TPA audits from 30% to 50% which was implemented during this year cross ICR was in from 81.02% in 2425 to 96.15% in 2526.
Mainly because we had not accepted the premium reinsurance premium. However, the old claims continued to hit us. And in the other lines of business there was an increase in the ICR from 58.77% to 63.40% in 2526. So overall the ICR has increased from 96.61% in 2425 to 98.65% in the year 2526. And for quarter four there was an increase from 94.43% to 95.85%.
Unidentified Participant
The performance of New India Indian
Mary Abraham — General Manager
Business with respect to the industry. The general insurance industry grew by 9.3% in the financial year 2526. Whereas we grew at our domestic gross direct Premium grew by 10.9% outpacing the industry growth. And our market share increased from 12.56% to 12.74%. Segment wise market share. In Fyer, our market share stands at 17.56%. In Marine we have a market share of 17.77%. In Motor our market share is 9.91%. In Health and PA IT it is 14.93%. And the other lines put together it is 15.13%. So with an overall market share of 12.74%.
The Gross Domestic Premium of New India is Rupees 42822crores. This is just the Indian business across domestic premium as compared to the market total industry premium or of 3.36,123 crores. Distribution mix of the company of
Operator
The Indian business Broker accounts for 35.79%.
Mary Abraham — General Manager
Direct business accounts for 30.13%. Agency accounts for 25.91%. Dealer accounts for 7.56% and bank assurance
Operator
0.61%.
Mary Abraham — General Manager
Thank you.
Operator
Shall we start with the question and answer session?
Mary Abraham — General Manager
Yes.
Unidentified Participant
Yes.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. 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 Shobhit Sharma from HDFC Securities Limited. Please go ahead.
Shobhit Sharma
Yeah. Hi ma’. Am. Thanks for the opportunity. I have questions on your motor line of business. We have Been course correcting the motor portfolio over the last 2 3/4 we have seen. So how long do you think it will take for us to course correct the overall portfolio? When can we expect the loss ratios to come down and are there any plans to increase or reprice our od OD premiums? And, and what’s your sense on the overall competitive intensity in the industry as of now post the GST tailwinds which has come across the industry and if you can highlight the mix of private car, commercial vehicle and two wheelers for FY26 and FY25.
This is my first question.
Girija Subramanian
Yeah, so you asked me about the course correction. The course correction like we have just started this course correction in motor from the second quarter of this year and we have seen a very positive change in the portfolio composition for the current year and we believe it will take another year before we are able to get to the right mix that we feel will work out for New India. I think the overall ratios will also show a reducing trend in the current fiscal. Now for the GST we have seen that the growth in the sales of motor vehicles has gone up and it has reached normal levels which has been the case in the previous year.
And going forward we believe that we’ll be able to leverage on this growth and see that we grow in the lines of the segments that we want to grow in. Now with the, the private car percentage,
Unidentified Participant
What
Girija Subramanian
Is the portfolio mix?
Unidentified Participant
It consists of 4890.
Girija Subramanian
So the, the. Yeah, so the. We have a private car, the same portfolio 47.56, commercial vehicle 45.60 and two wheeler 6.79 for the current year as against.
Unidentified Participant
There is a reduction in commercial vehicle compared to last year by 1 1/2 percent. Private segment we have grown by 4%. Unfortunately in the first two quarters for autotype Maruti we couldn’t grow it but subsequently we have grown this. Did you know this 47.31. So
Girija Subramanian
Yes, we will be trying to get this mix in a, you know, more towards our, the preferred lines in the current year. So does this answer your question?
Shobhit Sharma
What kind of optimal mix we are looking at? Are we looking to increase the two wheeler mix to double digits or we are looking to increase the share of private car by reducing the cv. What kind of optimal mix are we targeting? Commercial
Girija Subramanian
Vehicles wherein the CC is greater than 7,500 we would not like to be much present in that segment. We would like to be in the lower than 7,500cc segment and also we have a Greater representation in the freight to improve the two wheeler to double digit selectively. And also geographically, also across the country we have got different strategies for different vehicle combinations which we will be deploying this year. We already started that process. So I think across the country it will not be the same with different strategies for different geographies.
And on an overall basis we would like the private sector, private car and the two wheeler to dominate.
Shobhit Sharma
Are we looking to increase premiums on the OD side given we are experiencing higher loss ratios on that side?
Girija Subramanian
That’s what. So it will also be linked with, you know, our strategies for this portfolio recalibration. So basically we’ll be seeing that we know, go ahead with increasing our OD premium on the selected segments.
Shobhit Sharma
And how is the competitive intensity now? Is the payouts on the motor side on the higher side or it has rationalized, it continues
Girija Subramanian
To be extremely competitive.
Shobhit Sharma
Okay, okay. And what about the discount? It has gone up or it has broadly remained stable?
Girija Subramanian
No, it has gone up. It has been increasingly going up over the over every quarter in the last year.
Shobhit Sharma
Okay, second question is on the commission ratio. We are seeing your commission ratio has improved significantly this year. So what has resulted or what has contributed to this decline? Is this the higher IRA commissions or. We have reduced the commission payouts which we used to do on our policy.
Girija Subramanian
Commission. So overall across many, many lines of business we have reduced commissions, whether it is health also we have reduced commissions. We have reduced it in. We have got increased RI commission also. So the net commission has definitely, you know, been in our favor.
Shobhit Sharma
Okay, can you comment upon the April renewals on the commercial lines? How is the pricing environment there? We have heard that the price on the pricing side, again the discounts have increased and so how are we looking forward for the rest of the year? So any comments on that piece?
Girija Subramanian
Actually I think commercial lines, it will continue to be competitive and I think we’ll have to see how we meet up with the competition. The rest of you, where our selected segments are, we’ll have to play around with the commissions. We’ll have to pair on the payouts and give more payouts in areas where we want to get the better benefit of the portfolio. So we’ll be dynamically changing the pricing and the strategy accordingly.
Shobhit Sharma
Then last question. How should we think about the Overall growth for FY27? Should we see a muted single digit kind of a growth or should we expect a higher growth for New India, specifically the motor segment? If you can comment up. And last question is how much was the Capital gain, which we recognized during the financial year,
Girija Subramanian
The growth will definitely be there and it will come because I think in the next year the growth will continue to be very bullish. It will be double digit for the industry and so it will be for new India. Also on water, I think it will be a single digit growth. It will not be very aggressive. On motor, we have a single digit growth and we see that we focus more on the profitability
Unidentified Participant
Capital.
Girija Subramanian
The capital gains is around 5600.1 crores.
Shobhit Sharma
This is for the year?
Girija Subramanian
Yeah, for the year
Shobhit Sharma
Motor is roughly around 20, 30% of your overall portfolio. If I look around 25%. Yeah, 25%. So you mentioned it. So overall growth would be in a high double digit double digits for you and it would be a single
Girija Subramanian
Digit for motor, double digits for the entire book.
Shobhit Sharma
So which segments are we looking at for the higher growth? Will it be driven by the health segment?
Girija Subramanian
Yes, it will be driven extensively by all retail segments. It can be helped. It will be the fire engineering, all the retail lines in, whether it’s liability, miscellaneous, credit, surety bonds, all of this. And it will finally be, you know, pushed up by the health retail segment. That would be the focus area.
Shobhit Sharma
Okay, thank you, thank you,
Operator
Thank you. The next question is from the line of one share, an individual investor. Please go.
Unidentified Participant
Hello, good afternoon, ma’. Am. Thank you for the opportunity. So my question is health NPA now contributes nearly half of the company premium. So going forward, what growth and profitability we can expect in this segment?
Girija Subramanian
Yeah, VA totally contributes around 47.5% of the whole book. And going forward also, because this is a segment in which awareness is very high among customers, there is a pull towards buying insurance and therefore we see that the growth will continue to be high. And this is also propelled by the 18% GST tax waiver. So we see a lot more interest in, you know, individual purchases, individual health policy purchases, which will also be a preferred segment for us.
Unidentified Participant
And like what profitability we can expect in this segment, we have
Girija Subramanian
Reduced the ICR this year by 2% and also brought down the commission ratios. So therefore there has been a big increase in the profitability for this segment from the way the company has operated this year and we’ll continue to do the same in the future.
Unidentified Participant
And in this year, which business segment contributed most to the premium growth?
Girija Subramanian
It was a health segment which Contributed the most. 66% of our overall growth this year was from health, followed by 25% from 5 and the rest from liability, surety, bond, etc
Unidentified Participant
And excluding cop insurance, the miscellaneous segments reportedly like grew by approximately 26%. So which subs segments are driving this too?
Girija Subramanian
Excluding,
Unidentified Participant
Excluding cost Insurance, the miscellaneous segment 26 first
Girija Subramanian
It’s driven by engineering, liability, surety, bonds, all these segments.
Unidentified Participant
Thank you. That’s it for myself.
Operator
Thank you. The next question is from the line of Nishi Vyas, an individual investor. Please go ahead.
Unidentified Participant
Hello. Thank you for the opportunity. So just wanted to understand, you know, the company has continued to outpace the industry growth during the financial year 2016. So just wanted to understand how sustainable is this market share gain and apart from that, are we expecting it to increase going further?
Girija Subramanian
It is very much sustainable. And this has not been a random aggressive growth without strategies. This has been a strategic growth in areas that we want to grow in. And because most of the growth has come in from the retail segments where we put our entire focus on, and this is in line with, you know, with the penetration agenda, with the insurance for all agenda for the country wherein the 19, almost 98.9% of the entire, you know, insurable interest lies uninsured. And therefore the thrust for new India has always been to, you know, insure new assets which have not been insured before or which have been underinsured before.
And therefore a lot of this growth is yet to come. Industries just opened up and growth will be in double digits in the next few years.
Unidentified Participant
All right, so as you mentioned that there’s a lot of penetration and there’s a lot of scope for growth going forward. Just I wanted to understand the kind of opportunities we might have, you know, with the increase of government focus on MSME and financial inclusion. So what kind of growth are we expecting from Tier 2 and Tier 3 expansion?
Girija Subramanian
Yeah, so the Tier 2, Tier 3 hinterlands, these are the places wherein the government also wants that financial inclusion should be there and the insurers should focus more. I mean already there are regulations which ask us to put in our attention on rural and other areas. And I think going forward there will be all insurers are working to get into tier 2, tier 3000. And that is where I think the bulk of the population that really requires this inclusion is there. And this is what will make the entire ecosystem more sustainable because when we get more new to insurance assets into the financial inclusion ring, then you will find that the capacity available will be used judiciously and the pricing will also become more affordable, making the sustainability as that you asked before also, you know, possible for us.
Unidentified Participant
All right, so ma’, am, apart from this also, you know, with the kind of growth that we are expecting going forward, how are we going to maintain the underwriting discipline as well at the same time?
Girija Subramanian
Yes, underwriting discipline is something that we already have guidelines and most of our classes are, you know, the guidelines are released by the ho, so the head office controls it and it is sort of passed down to our offices down the line. If there are changes, they are monitored. There is strict periodical monitoring of the guidelines. If there is anything that’s out of line or any such case comes up, it is handled very strictly. And therefore underwriting discipline has always been maintained from the beginning.
And I think going forward also it will be absolutely no issue to maintain the. In fact, there is increased monitoring and increased corporate governance, as I already said, towards qualitative impact that we have on the company’s balance sheet, on our investors and also on the customers when it comes to promise on what we deliver by way of terms and conditions in the policy. So the promise to deliver is at the forefront of everything that we do and therefore the price that we charge, the prudence, the underwriting, the discipline is of prime importance.
We understand that and we implement that also.
Unidentified Participant
All right, all right. Okay, okay, that’s it. From my side. Thank you.
Operator
Thank you. The next question is from the line of Rahul, an individual investor. Please go ahead.
Unidentified Participant
Thank you for this opportunity. So my question is that when we say that NICL is the largest general insurance in India. Let me go back in the past. In 2008 and 9 our market share was close to 19% and in 10 and 11 it was reduced to 16%. 20, 17, 18, we were below 15% and currently from 12.56 to 12.74. So from 19 to 20% market share, now we are at 12.74. Any comment on that? And if we are going with this trend, I can see it will go below 10% also. It’s not a growth. I can see it’s a degrowth in last 15 years.
Girija Subramanian
Yeah, so when you talk about, yeah, you talk about growth, it’s also in context with the environment and in the ecosystem. Now when you look back to 2008, 9, the number of insurers that were there, I would come public was almost in single digits. And then when you go towards this, 10, 11 and 17, 18, and it’s slowly built up. Today you have close to 29 insurers and many of them are the, you know, the, what do you say, state of the art insurers who have no legacy or any or even experience to carry the business they just do it on the backbone of digital, you know, technology.
So with all this, with the digital technology coming and the insurance, you know, the equals, the premium kitty having grown, I think from what, what was it in 8?
Unidentified Participant
9, 89 we were at 19%. 19 to 20%. Yeah, we were
Girija Subramanian
At 19%. But the premium city itself was very small. From there, from there to today we are at 3.36 lakh crores. I mean we have grown multifold and at 12.574% of what it is today, 3.36 that is 42822 crores is what we write on domestic in 2008, 9 we were talking of something like less than 10,000 for that number. So we have grown five times in this space. And that speaks for itself. When you speak of growth you have to see the relative growth of the number of competitors, the kind of regulations that have come in, the, you know, the kind of technology that has creep in, the opsilance of technology as you go day by day and the kind of challenges that we’ve had to, you know, encounter and go, I mean, and leapfrog to see that we are ready.
And I think we are doing very, very well for that. I mean I don’t think even any of the private sectors can talk about anything like this on a market share basis in a 1012 year horizon the way we have done in
Mary Abraham
2008, 9 it is 6400. So
Girija Subramanian
In 8, 9 we were at 6400 total business and today we are at 42822 crores. So it’s is totally unthinkable. Seven times we have grown.
Operator
Thank you ladies and gentlemen. As there are no further questions from the participants, I now hand the conference over to management for closing comments.
Girija Subramanian
Thank you everyone. 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 overseas offices, our agents, our brokers and all our stakeholders. All 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 or seven years. And we have also delivered on their trust by being consistently voted as the best PSU for customer grievance. Retirement for the last six months. The confidence of our customers 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 in the broader economy. Thank you once again for your time and participation. We look forward to your continued engagement to the furtherance and well being of your company. Thank you.
Operator
Thank you, ladies and gentlemen, on behalf of New India Assurance Company Limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.