Government-owned National Insurance Company Limited hopes to turn profitable in 2024-25. The general insurance company had recorded a net loss of ₹187 crore in 2023-24, significantly lowering the loss from ₹3,865.39 crore in 2022-23, according to the public disclosure on its website.
“We have been pruning the loss making businesses within motor and health. On the health side, there has also been a repricing of group policies,” said T. Babu Paul, executive director, National Insurance, on the sidelines of an Assocham event on Saturday.
“If there are no major national catastrophe events, we are expecting to turn profitable this year,” Paul said adding that the bottomline could be around ₹100-200 crore as per internal projections.
He said that the general insurer is focussing more on retail business in health and motor. Currently these two segments constitute around 80 per cent of the total portfolio which is expected to come down to 70 per cent over the next 3 years with the insurer expanding into property, fire, marine and other miscellaneous insurance.
Further, a combination of factors such as increasing medical inflation as well as regulatory changes such as removing the entry age limit, reducing in waiting period for pre-existing and specified diseases among others, would result in repricing of health insurance policies.
National Insurance is expecting a single digit rise in premium. At an industry level, health insurance premium is expected to increase by around 5-15 per cent.
