Only New India Assurance posts profit as three PSU general insurers remain in the red

New Delhi: The financial performance of India's four public sector general insurance companies (PSGICs) remained uneven during the financial year 2025-26, with only New India Assurance Company Ltd reporting a profit while the other three insurers continued to incur losses, the government informed Parliament on Monday.

Replying to a question in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said the profitability of the state-owned non-life insurance companies showed a mixed trend during the year.

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New India Assurance remains the only profitable PSU insurer

According to the minister, New India Assurance Company Ltd continued to be the only profitable company among the four public sector general insurers. The company reported an improved net profit of Rs 1,384 crore during 2025-26.

However, the remaining three state-owned insurers reported losses during the same period, underscoring the continuing financial challenges faced by a large part of the public sector general insurance industry. The minister, however, did not provide the loss figures of the three companies in his written reply.

The four public sector general insurance companies are New India Assurance Company Ltd, National Insurance Company Ltd, Oriental Insurance Company Ltd and United India Insurance Company Ltd.

Government highlights HR digitisation drive

Apart from their financial performance, the government said the public sector insurers are modernising their human resource management practices through digitisation.

Chaudhary informed the House that all PSGICs have implemented a Human Resource Management System (HRMS) to digitise and streamline various employee-related processes.

The digital platform covers key functions across an employee's service lifecycle, including leave management, payroll processing, performance appraisal, promotions, transfers, training programmes and retirement benefits.

According to the minister, the HRMS is being continuously upgraded to improve operational efficiency, enhance transparency and provide better employee services.

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Promotion policies under periodic review

The government also clarified that promotion policies in public sector general insurance companies are framed by their respective boards of directors.

Promotion examinations, wherever applicable, are conducted in accordance with the promotion policy approved by the board of each company.

Chaudhary said these policies are reviewed periodically to align them with organisational requirements and incorporate evolving human resource best practices.

The government's response comes at a time when public sector insurers are working to improve operational efficiency, strengthen governance and enhance employee management while addressing the financial pressures facing the sector.

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