Combined ratio 117.83%. Underwriting loss Rs 46,632 crore. Net profit down 92% to Rs 953 crore. These FY26 general-insurance numbers, reported by Asia Insurance Post, are easier to act on once you know what the ratio means.
What the combined ratio is
The combined ratio adds the loss ratio (claims paid over premium earned) to the expense ratio (costs over premium earned). Below 100% means underwriting profit; above 100% means the insurer pays out more in claims and costs than it earns in premium. FY26's 117.83% means about Rs 1.18 of claims and expenses for every Re 1 of premium.
Why it moved
Premium grew about 10%, but claims and expenses grew faster. PSU insurers drove the aggregate, with combined underwriting losses of about Rs 30,900 crore. Standalone health insurers lost Rs 2,544 crore. Specialised insurers AIC and ECGC stayed profitable. Crucially, this happened in a year without a major catastrophe.
What it means for your premium and claims
- Renewal pricing: loss-making lines, especially motor, fire and group health, face pressure to reprice.
- Terms: deductibles, sub-limits and exclusions may tighten where risk selection was loose.
- Claims: scrutiny and documentation demands rise when an insurer's underwriting is under strain.
- Stability: an insurer profitable mainly on investments has less cushion than its headline number implies.
What to do
- Compare renewal quotes and check what changed in the terms, not just the price.
- Keep claim documents complete and timely.
- Check the insurer's solvency and combined ratio at renewal if you run a business or hold a large cover.