Dear Shareholders,
I take the opportunity to congratulate and thank all the stakeholders on the completion
of 104 years of successful operations of our great Company. Our history is replete with
golden moments from the time it commenced operations in 1919 and spread its wings, through
the turbulent days of the pre-independence period and the Word War II, the freedom
struggle when all Indians stood as one, the post-independence days of heady freedom and
nationalistic pride, subsequent nationalization when there were only 4 PSU Insurers and
then the de-tariff era where today we compete with 25 General Insurers, 5 Standalone
Health Insurers and 2 Specialist Insurers.
All throughout the Company has always remained adequately capitalized. Today we have
around 1 lakh shareholders across various categories. The Government of India currently
holds 85.44% of the total shares of the Company.
The expectations of our stakeholders have always remained a motivation for us to meet
the highest level of business performance, ethics and standards. New India continues to be
the market leader with the highest market share of 13.42% in the non-life insurance
industry in India. Gross Written Premium increased by 5.3% for New India as the Company
pursued its strategy of growth with profitability, which meant that the Company had to let
go of some businesses where the price was inadequate, or the terms were unfavourable. The
conscious call and efforts taken by the Company to weed out loss-making accounts in Group
Mediclaim and Crop Insurance business has resulted in a lower market share compared to
last year. But there has been a resultant improvement in the operating performance of the
Company.
Profit After Tax has increased to Rs 1,055 Crores in this financial year as compared to
a Profit After Tax of Rs. 164 in the previous financial year, an increase of nearly 543%.
Underwriting results were negatively impacted to an extent of Rs 224 Crores due to
adverse development of claims pertaining to the previous years in the crop line of
business. Some major losses in foreign operations also negatively impacted on the full
year's results by Rs 107 Crores. The Company's guarded approach to Group Mediclaim
will continue. Strict implementation of the guidelines framed by the Company has enabled
the ICR of Group Mediclaim to reduce to 105% in Financial Year 2023 from a high of 120% in
Financial Year 2022. The Company has rolled out price increase in Retail Health which will
be effective from FY 2024, and the Company's focus is on increasing its footprint in the
retail health segment.
After muted performance over last many years, New India saw good growth in the motor
portfolio once again and steps are being taken to reduce loss ratio in this segment. In
Financial Year 2023, the Company absorbed the entire impact of the wage arrears and
additional provisioning on account of employee benefits to the extent of Rs 3,445
Crores. Despite additional profit realization of equity portfolio to offset this impact,
the fair value change continues to remain healthy in excess of Rs. 18,000 Crores as
of Financial Year 2023.
The Company declared a dividend of Rs 1.93 per share adhering to its stated
Dividend Distribution Policy of 30% of Profit After Tax as Dividend. The performance of
the Company was also well recognized and it received a number of prestigious awards during
the year. The Company has been conferred the most preferred workplace award and the
General Insurance company of the year award by ET Ascent for Excellence and Leadership in
BFSI.
The Company has been a major participant in implementing the Ayushman Bharat Scheme in
the State of Rajasthan. We were the sole insurer of the Pradhan Mantri Garib Kalyan Yojana
Health Insurance Scheme for front line Covid health warriors. This enabled us to be a part
of the Nation building process, post COVID.
The Company focuses on product innovation, technology and customer service as key focus
areas. We issued close to 3 Crore policies and settled close to 1 Crore claims during the
year. With a network of 1900+ Offices, we have a presence across the Country.
We have continued to enhance the product offerings and expand our distribution channels
to better serve our customers. Some of the new products which you may have seen in the
market recently are MyCyber Insurance, Surety Bonds, Drone Insurance, Pay as you Drive
under Motor line of Insurance, and the Credit Guard Health policy covering critical
illness. Our strong relationships with agents, brokers and corporate clients have enabled
us to deepen our market penetration and to capitalize on emerging opportunities.
Additionally, we have placed a strong emphasis on digital transformation and
technological innovation, enabling us to streamline processes, improve customer experience
and to drive operational efficiency. These initiatives have positioned us well for the
future, ensuring that we remain agile and adaptive in an ever-evolving industry landscape.
I would like to take this opportunity to express my appreciation for the unwavering
dedication and hard work of our employees and our dedicated force of agents. Despite a
large scale Corporate restructuring, their commitment and professionalism have been
instrumental in accomplishments and have played a very crucial role in delivering value to
our stakeholders. Looking ahead, we remain cautiously optimistic about the prospects of
the industry and our ability to navigate the challenges that lie ahead. We will continue
to focus on strengthening our core business, exploring new growth avenues and further
enhancing our customer centric approach. I am confident that with our strong fundamentals,
dedicated team and strategic vision, New India is well positioned to achieve sustainable
growth with profitability and generate long term value for our shareholders.
While concluding, I once again extend my sincere thanks to all our stakeholders.
I foresee "New India" continuing to innovate and lead the way in providing
comprehensive protection solutions, as the Company builds a brighter, more secure future
for its valued shareholders and customers alike.
Thank You,
- Neerja Kapur.
Chairman.