PSU general insurers swing to ₹10,051-crore loss as solvency ratio deteriorate

The four public sector general insurers swung to a combined net loss of ₹10,050.79 crore in 2025-26, from a net profit of ₹802.87 crore in the previous year, reversing the improvement seen over the preceding two years, according to latest data from the General Insurance Council (GIC).

The deterioration was accompanied by a sharp widening of underwriting losses. The four insurers’ combined pure underwriting loss increased to ₹30,892.09 crore in FY26 from ₹18,366.41 crore in FY25. Their combined ratio also rose to 134.37% from 121.23%. A combined ratio above 100% means claims and operating expenses exceeded premiums.

Solvency ratio measures an insurer’s capital cushion against its regulatory capital requirement, while the combined ratio measures underwriting performance by comparing claims and operating expenses with premiums.