A COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE IN SELECTED GENERAL INSURANCE COMPANIES OF INDIA

Abstract

The general insurance sector is an integral component of India’s financial system, offering protection against unforeseen risks and fostering economic resilience. By covering diverse domains such as health, property, vehicles, and industrial risks, this sector supports both individual and corporate financial stability. It facilitates the transfer of risk from policyholders to insurers, enabling better allocation of financial resources and reducing economic uncertainty. The general insurance sector plays a pivotal role in India’s economic stability and growth by providing risk management solutions to individuals, businesses, and industries. This study conducts a comparative analysis of the financial performance of three prominent general insurance companies in India—General Insurance Corporation of India Ltd, ICICI Lombard General Insurance Company Ltd, and New India Assurance Company Ltd—over a five-year period (2019-20 to 2023-24). Key financial metrics analysed include net profit margin, current ratio, and return on assets, which provide insights into profitability, liquidity, and asset efficiency, respectively. The findings reveal significant differences in net profit margin and current ratio among the companies, reflecting diverse financial strategies and operational efficiencies. However, no significant differences were observed in return on assets, indicating comparable levels of asset utilization. This study contributes to understanding the financial dynamics of the Indian general insurance sector and provides actionable insights for stakeholders to enhance financial performance.