Dear Shareholders,
I am pleased to present the Annual Report for the Financial Year
2023-24. This year has been transformative for The New India Assurance, marked by
resilience, innovation, and a steadfast commitment to excellence. Globally, our Company
reported a Gross Written Premium (GWP) of INR 41,996 crore, reflecting our robust
operational performance and strategic initiatives aimed at reinforcing our leadership
position in the insurance sector.
I am proud to announce that New India holds the highest market share in
the industry representing 12.78% of the market and consistently has been a market leader
in Fire, Marine, Engineering, Aviation and Health Insurance lines of business. This is a
testament to our thriving market presence and our ability to meet the diverse needs of our
customers. We are proud of our extensive global reach with a presence in 25 countries and
our expansive network of over 1,755 offices in India as on 31st March 2024. Additionally,
we are the State Insurer for the State of Gujarat and the Union Territory of Lakshadweep.
This widespread footprint reinforces our dominant position in the market and enhances our
ability to serve a broad customer base.
Coming to the financials, our Gross Written Premium grew by 8.3% during
the year to INR 41,996 crores as compared to INR 38,791 crores in the financial year
2022-23. The Profit After Tax increased by 7% during the year to INR 1,129 crores against
INR 1,055 crores last year. The Profit After Tax for the fourth quarter more than doubled
as it increased by 128.4% to INR 354 crores. The Solvency ratio remains healthy at 1.81
times and our Company remains adequately capitalised. The Net Worth stood at INR 21,135
crores as against INR 19,920 crores in the last financial year. The Investment Assets
stand at INR 95,910 crores as against INR 86,111 crores last year.
The investment environment has been buoyant and the company's net worth
including fair value change account increased to INR 44,704 crores as on 31st March 2024
as compared to INR 37,957 crores in the previous financial year recording a growth of
17.78%. The impact of catastrophic claims on the net incurred claims during the year was
INR 794 crores. During the fourth quarter there was an impairment charge of INR 110 crores
on the Nigerian operations due to devaluation of their currency, the Naira.
Some tectonic changes have been taking place at the regulatory level
with introduction of principle-based regulations. These regulations are a part of a larger
exercise undertaken by the regulator to make the insurance ecosystem more robust and
consumer friendly. These changes open up substantial opportunities for us, particularly in
expanding digital platforms and reaching underserved markets. We intend to adapt swiftly
and leverage these reforms to ensure that we are well- positioned to improve customer
engagement, policyholder retention, and increase our market share.
Keeping in mind the requirements of our Customers and market needs, the
Company has successfully marketed Surety Bonds for Customers in the Infrastructure
segment, enabling them to provide a financial guarantee that contractual obligations will
be fulfilled, while protecting project owners from potential losses due to contractor
default. Additionally, the Company has introduced Battery Protect for EV for Private Cars
and Commercial vehicles, to serve the needs of our Retail Customers, and Saral Sampurna
Kisan Bima, a Farmers Package Policy, to serve the Rural segment.
Embracing digital transformation has been pivotal to our strategy. We
have invested significantly in advanced technologies to streamline our processes, enhance
customer experiences, and improve operational efficiency. Our user-friendly digital
platforms have made insurance more accessible, enabling seamless policy purchases,
renewals, and claims processing.
We aim to achieve an increase in Retail insurance premiums and
profitable segments while improving our presence in underpenetrated areas/LOBs. We plan to
undertake targeted marketing campaigns, customer & intermediaries' engagement
initiatives, and the marketing of our products as per individual needs. A concerted effort
for the Bancassurance channel is being made, with the intention being to collaborate with
Commercial Banks, Cooperative Banks, Regional Rural Banks and Non-Banking Financial
Institutions. Additionally, we are looking to tap cooperative Societies, local
organizations, NGOs and Self-Help Groups to enhance reach and trust.
Our international operations continue to strengthen, contributing
significantly to our overall performance. With a presence in 25 countries, we are
well-positioned to leverage global opportunities and mitigate risks. Our strategic focus
on profitable growth and market diversification has yielded impressive results,
reinforcing our reputation as a global insurance leader.
We are proud to have received numerous accolades this year, including
the prestigious Most Trusted General Insurance Company of the Year, Leading General
Insurance Company of the Year, the SKOCH Award - Corporate Excellence, Most Preferred
Workplace Award and the Women Empowerment by CSR Times.
These awards are a testament to our Company's commitment to excellence,
innovation, and employee satisfaction. They reflect the hard work and dedication of our
team, who consistently strive to deliver the best outcomes for our stakeholders.
Over the past three years, the Company has demonstrated a strong
commitment to shareholder returns, declared dividends of Rs. 49.44 crore in FY 2021-22,
Rs. 318.06 crore in FY 2022- 23, and Rs. 339.48 crore in FY 2023-24. Moving forward, we
anticipate that these measures will continue to enhance and create shareholder value.
At The New India Assurance, we are committed to being a responsible
Corporate Citizen. Our CSR initiatives focus on community development, education,
healthcare, and environmental sustainability. This year, we have launched several programs
aimed at improving the lives of underserved communities and promoting sustainable
development.
Looking ahead, we remain focused on driving sustainable growth,
leveraging technology, and enhancing our product offerings to meet the dynamic needs of
our customers. We will continue to invest in our people, processes, and technology to
maintain our competitive edge and deliver exceptional value to our shareholders,
customers, and stakeholders.
In conclusion, I extend my heartfelt gratitude to our shareholders,
customers, employees, and partners for their unwavering support and trust. Together, we
will continue to build on our legacy of excellence, ensuring that The New India Assurance
remains a beacon of trust, reliability, and innovation in the insurance industry. Thank
you for your continued support.
Ms. Girija Subramanian
Chairman-cum-Managing Director