New India Assurance Company Ltd (NIACL) Q2 FY27 Results Analysis: PAT Swings to Loss, Combined Ratio Hits 156.2%

Cofacto Research Published October 30, 2026 3 min read

New India Assurance Company Ltd reported Q2 FY27 numbers. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	October 30, 2026
Revenue (Q2)	Rs. 11,083.43 Cr (+5.14% YoY)
PAT (Q2)	Rs. -1,267.04 Cr
EPS (Q2)	Rs. -7.69

Quarter Snapshot

Q2 FY27 standalone PAT swung to a loss of Rs.1,267.04 cr from a Rs.63.25 cr profit YoY as the combined ratio deteriorated to 156.20%, the worst of the last six periods, driven by a 26.12% incurred-claims surge including a Rs.715.41 cr Supreme Court Motor TP reserve and flood losses. All nine segments posted underwriting losses, Fire net premium fell 38.95% YoY on the property-rate crash, and solvency slipped to 1.61x from 1.80x. Management missed its own FY27 guidance on double-digit premium growth, the Motor loss-ratio band, and double-digit ROE, with H2 needing to roughly break even to stabilise capital above the 1.5x control level.

Q2 FY27 Expectations vs Results

Driver	What happened	Verdict
"a firmer flow backdrop for Q2 GPW than Q1's +2.90%... not obviously double-digit"	GPW +5.14% YoY	Played out
"likely compressing… three cost vectors land inside the window"	Combined 156.20%; ICR 133.71%	Played out
SC Motor TP rulings add reserves; watch quantification	Rs.715.41 cr locked from the filing	Played out
"investment-income offset faces a harder tape"	Net investment income −0.24% YoY, +87.19% QoQ; ~Rs.1,800 cr NSE gains realised	Contradicted
"whether property rate hardening starts showing in NIACL's Fire premium"	Fire NP −38.95%; UW loss Rs.(1,612.9) cr	Contradicted
"solvency path from 1.80x"	1.61x, above 1.5x	Played out
"whether any fresh wage/pension provision recurs"	None disclosed; employee costs −10.31% QoQ — none booked	Not observable

Read our full results preview.

Management Guidance vs Delivery

What management said	What happened	Verdict
Solvency above IRDAI 1.5x control level	1.61x	Met
Double-digit overall premium growth (FY27)	GPW +5.14% YoY; H1 +3.89%	Missed
Single-digit Motor growth (FY27)	Motor NP +12.16% YoY	Missed
Motor loss ratio 103–104%	UW loss Rs.(1,953.4) cr incl. SC reserve; Rs.(1,238.0) cr ex-reserve	Missed
Double-digit ROE	H1 standalone PAT Rs.(1,523.8) cr — deeply negative	Missed

Key Numbers, Quarter by Quarter

Metric	Q3 FY26	Q4 FY26	Q1 FY27	Q2 FY27
GPW (Rs. cr)	11,680	11,619	13,720	11,083
PAT (Rs. cr)	372	558	(257)	(1,267)
Combined %	117.98	118.34	121.44	156.20
ICR %	90.77	95.85	103.38	133.71
Solvency x	1.81	1.84	1.80	1.61

Key Investment Insights

Key Positives

GPW grew 5.14% YoY to Rs.11,083.43 cr, an acceleration from Q1 FY27's +2.90%
Health & PA underwriting loss narrowed Rs.229.3 cr YoY to Rs.(1,152.9) cr, the lone YoY segment improver
Net investment income of Rs.2,907.21 cr was stable YoY (−0.24%), including ~Rs.1,800 cr of realised NSE gains per the CMD's press release
Solvency ratio of 1.61x remains above the IRDAI 1.5x control level
AY 2022-23 tax refunds of Rs.781.39 cr (incl. Rs.59.63 cr interest) received in the quarter
Motor TP SC-verdict reserve of Rs.715.41 cr is an initial estimate with the GI Council review petition filed 10-Jul-2026

Risk Factors

Combined ratio deteriorated to 156.20% (from 139.77% YoY, 121.44% QoQ), the worst of the last six reported periods
Underwriting loss of Rs.5,237.35 cr; all nine segments posted underwriting losses
Standalone PAT swung to a loss of Rs.1,267.04 cr from a profit of Rs.63.25 cr YoY; even normalised, the quarter lost ~Rs.550-730 cr
Fire segment net premium fell 38.95% YoY with underwriting result swinging from +Rs.277.8 cr in Q1 FY27 to Rs.(1,612.9) cr
Solvency ratio fell to 1.61x from 1.80x QoQ, consuming 19 pts of headroom in one quarter
Missed management's FY27 guidance on double-digit premium growth, Motor loss ratio (103-104%), and double-digit ROE