Public Sector General Insurance Companies(PSGICs)- Achieve Strong Financial Turnaround, become profitable again
Government infuses Rs. 17,450 crore into PSGICs between 2019-20 and 2021-22 to support reforms, improve efficiency, and drive profitability
By PIB Delhi
Indian Public Sector General Insurance Companies (PSGICs), that historically reported losses, witnessed a major turn around with all of them having become profitable again. While Oriental Insurance Company Ltd. (OICL) and National Insurance Company Ltd. (NICL) started posting quarterly profits from Q4 of F.Y. 2023-24 and Q2 of F.Y. 2024-25 respectively, United India Insurance Company Ltd. (UIICL) posted profit in Q3 of FY 2024-25 after a gap of 7 years. Notably, New India Assurance Company Ltd. (NIACL) has consistently maintained its position as a market leader and has been making profits regularly.
Government of India has been committed to creating strong and competitive Public Sector General Insurance Companies and introduced reforms including regular key performance indicators-based monitoring. Union Government had also infused a total capital Rs.17,450 Crore in these PSGICs during 2019-20 to 2021-22 with the aim of allowing these companies to undertake structural reforms, enhance operational efficiencies, and return to profitability.
With improved risk-management practices, loss control initiatives, adoption of technology, development of new products, better customer services and diversification of portfolio, the PSGICs have posted a magnificent turnaround from combined losses of over Rs.10,000 crore in 2022-23, to all individual PSGICs becoming profitable by Q3 of the current financial year and posting a combined profit of Rs.1066 crore in Q3 of 2024-25.
The Public Sector Insurance Companies remain committed to maintaining this positive trajectory. Ongoing strategic measures and new initiatives continue to be rolled out to further strengthen the financial stability of the PSGICs and improve customer services. PSGICs are also committed to offering high-quality insurance products and services, ensuring long-term sustainability and and enhancing customer experience, while achieving growth. The PSGICs are also committed to the broader objective of achieving “Insurance for All” by 2047.
