National Insurance aims at break-even in FY24: Official

Kolkata: National Insurance Company, a non-life insurer in the public sector, which has been reporting losses for the last few years, has set its sights on break-even and returning to profits from 2023-24 fiscal, an official said on Thursday. The city-based insurance major is taking several measures to reduce cost, improve margins and focus on high-margin retail products to achieve its goals and return to profits, he said.

We hope to reach break even or make a nominal profit in 2023-24: Paul

"We hope to reach break even or make a nominal profit in 2023-24. Our profit is expected to grow consistently henceforth as we have taken several measures to eliminate underwriting losses," NIC General Manager T Babu Paul said on the sidelines of an insurance event organised by CII. NIC is working on reducing its current combined ratio from 120 percent to 100 percent in the next three years, he said.

'NIC is tweaking its commission policy & focusing on high-margin retail products'

"To bring down the combined ratio, NIC is tweaking its commission policy and focusing on high-margin retail products," Paul said. "We are working on a strategy to bring down the combined ratio to 100 percent in three years. We will finalise the new commission policy in the next three months.
This will help improve the bottomline. Our retail growth last year was in single digits, and we are looking at growing our retail book by double digits," Paul said.

Support of treasury income to help NIC earn profit

The support of expected treasury income of Rs 2,700-2,800 crore will play a major role for the insurance major to earn profit in FY'24, the official added.

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