General Insurers’ Underwriting Losses Widen to Rs 45,279 Crore in FY26
General insurers saw underwriting losses widen to Rs 45,279 crore in FY26, reflecting pressure on core insurance operations.
General insurers reported a sharp widening in underwriting losses to Rs 45,279 crore in FY26.
General Insurers: India’s general insurance industry reported underwriting losses of Rs 45,279 crore in FY26, widening from Rs 31,043 crore in FY25, according to financial highlights published by the General Insurance Council. The industry, comprising public and private general insurers, standalone health insurers and specialised public sector insurers, saw only one of its roughly 32 players keep its combined ratio below 100 percent, indicating that most insurers continued to lose money on their core underwriting business.
Gross direct premium income of non-life insurers grew 9 percent to Rs 3.36 lakh crore in FY26. Underwriting profit is a key measure of an insurer’s financial health, reflecting the profitability of its core insurance business after accounting for claims and insurance-related expenses.
Also Read: Learner’s Licence Doesn’t Guarantee Insurance Cover Unless Conditions Are Met: Karnataka High Court
General Insurers: PSU Insurers Lead Escalation in Losses
The four public sector general insurers accounted for the bulk of the increase, posting combined underwriting losses of Rs 29,071 crore in FY26, up from Rs 18,863.24 crore in FY25. Earlier this month, the Finance Ministry asked public sector general insurers to improve insurance penetration and reduce claim ratios after reviewing their financial and business performance for 2025-26. According to a Finance Ministry release, the secretary urged public sector insurers to focus on profitable lines of business and take suitable measures to bring down the incurred claims ratio (ICR), which measures claims incurred as a proportion of premium earned.
Among PSUs, Oriental Insurance posted a combined ratio of 145.71 percent in FY26, meaning it incurred Rs 145.71 in claims and operating expenses for every Rs 100 of premium earned. United India Insurance reported a combined ratio of 144.45 percent, while New India Assurance’s stood at 122.55 percent.
General Insurers: Private Insurers See Smaller but Still Rising Losses
The cumulative underwriting losses of private sector general insurers stood at Rs 16,682.34 crore in FY26, compared with Rs 14,033.31 crore in FY25. Tata AIG General Insurance posted the highest underwriting loss among private insurers at Rs 2,442.25 crore, while ICICI Lombard’s underwriting loss stood at Rs 1,024 crore.
Bajaj General Insurance reported the best underwriting performance among private general insurers, with an underwriting loss of Rs 103.29 crore. HDFC ERGO trimmed its underwriting losses by Rs 392.94 crore to Rs 1,042.89 crore, down from Rs 1,435.83 crore in FY25.
General Insurers: Combined Ratios Stay Elevated Across the Board
Except for private sector Universal Sompo General Insurance, all private and public sector general insurers and standalone health insurers reported combined ratios above 100 percent in FY26. Standalone health insurers such as Galaxy Health Insurance and Narayana Health reported combined ratios exceeding 156 percent, driven primarily by higher management expenses.
