National Insurance

National Insurance is known as India's second-largest non-life insurance company. It might interest you to learn that National occupies major market shares in many lines of insurance business.

National Insurance

It might interest you to learn that National occupies major market shares in many lines of insurance business. For instance, it is the second-largest private-sector life insurer in India with a 40% market share and the largest home insurer, with more than 54% of that pie. In FY 2016-17, its net profit grew 134%. National Insurance is one of those companies from India that is widely recognized for delivering competitive products to its customers backed by superior service.

National Insurance originated as Life Insurance Corporation of India in 1949. In 1955, National Peril and Fire Service Life Insurance Company were floated as a subsidiary company of LIFO. In 1971 it acquired the whole capital of LIFO and became a 100% subsidiary of Life Insurance Corporation of India.


The new company was renamed National Insurance Corporation (NIC) in 1976 under the leadership of Dr. R M Bhatia and Dr. S K Roy. The company went public on 19 October 2012 by launching an initial public offering (IPO) on the BSE-500 Stock Exchange with a share capitalization of Rs829 million (Rs22 crore).

Its 2011-12 net profit stood at Rs15.5 billion, which is a growth of 17%. National Insurance’s return on equity has increased to 28.8% in 2010-11 from 22.8% in the previous year. Its assets have also increased by 17 percent to Rs347.9 billion as of 31 March 2011 and its paid-up capital has reached Rs1203 million as of 31 March 2011. The growth was primarily due to increases in natural hazards claims, acquisitions, and investments during the year 2010-11; and the company grew annual gross premium income by 18 percent with a market share of 32%.

National Insurance's net profit for 2010-11 stood at Rs13.8 billion, which is a growth of 18.3% over the previous financial year 2009-10. The company's return on equity increased to 31.5 percent in 2010-11 as against 30.6 percent in the previous financial year 2009-10. This performance marks a turnaround from the losses incurred during the last three years due to natural calamities and economic slowdown in emerging economies like India and China, which have eroded its market share and profits, adversely affecting its investments too.

National Insurance’s net profit for 2009-10 stood at Rs13.4 billion against Rs7.6 billion in 2008-09. The return on equity increased to 34 percent from 32 percent previously in 2008-09 and 26 percent in 2007-08. The company's assets under management (AUM) have grown by 12% over the previous year, while its AUM increased by 18% to Rs316 billion during the year 2009-10. The company’s gross premium income grew by 15% over the previous year, while its portfolio assets grew by 14%.

National Insurance’s net profit for 2008-09 stood at Rs7.6 billion against Rs6.5 billion in the previous year. Its return on equity remained flat at 32 percent in 2008-09 as against 31 percent in 2007-08. The company's assets under management (AUM) have grown by 8% over the previous year, while its AUM increased by 9% to Rs289 billion during the year 2008-09. The company’s gross premium income grew by 7% over the previous year, while its portfolio assets grew by 11%.


National Insurance

Insurance Corporation of India was incorporated on 21 December 1949 as a public limited company and commenced business on 1 October 1950. It was renamed in 1968 as National Insurance Company and again renamed in 1976 as National Insurance Corporation, which then comprised two major companies, namely Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC), both under the control of the Government of India. These companies have now been corporatized and are operating independently.

National Insurance is a public limited company with the Government of India owning 86 percent equity. The rest of its shareholding is with the general public. Its paid-up capital at the end of 2008-09 amounted to Rs.1203 million, its equity shares quoted on the Bombay Stock Exchange (BSE) are as per schedule II of Bombay Stock Exchange [BSE] Regulations, 1999 and its paid-up capital at the end of 2010-11 amounted to Rs1203 million, which is equal to 1.51% of its issued and paid-up equity share capital.

National Insurance Corporation (NIC) earlier known as Life Insurance Corporation of India (LIC) was incorporated on 21 December 1949 as a public limited company and commenced business on 1 October 1950. In 1968, LIC became a scheduled company under the Companies Act 1956 and was renamed National Insurance Company on 11 July 1968. The public limited company (LIC) was again renamed in 1976 as National Insurance Corporation with its two subsidiaries, namely Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC), both under the control of the Government of India. These companies have now been corporatized and are operating independently.


The shareholding pattern at present is as shown below:

Share Capital 

National Insurance has a branch network of 590 offices spread across all major cities, towns, and rural areas in the country. The company website offers an extensive range of services to customers including details on products and services, customer service contacts, and branch locations.

National Insurance has three product offerings to meet the diverse financial needs of its customers. These are General Liability Insurance, Property Insurance, and his own Specialised Single Premium Business (SSPB) which provides a single-premium business service for various groups of employees.

In addition to these, National Insurance also provides integrated life insurance products for the self-employed as part of its benefits business model.

National Insurance has two acquisition targets lined up in its target segment—the insurance segment and asset management. In the case of capital markets, it aims to acquire companies that have significant growth potential and a track record of performance with the potential to grow further in the future in the mutual fund or asset management component or both.

National Insurance, which is listed on the BSE and the National Stock Exchange, has a board of directors. The chairman is Suresh Prasad Ghosh, the managing director of LIC who has been serving on NIC's board since 1998. 

Shares in NIC are held by LIC itself; all shareholders outside LIC hold shares through these listed companies:

LIC (Life Insurance Corporation of India) 

GIC (General Insurance Corporation of India) 

The company is also a large shareholder in Capital markets, with over 50% shareholding in many mutual funds.

Over the last half-century, its success has brought it to positions of power in the financial services industry in India. The only other insurance company listed on the BSE and owned by the Government of India is National Housing Bank, which also operates a separate subsidiary.

It was one of the first insurance companies to bring the life insurance business under a single umbrella, with all its units being brought under a single brand name—Life Insurance Corporation.

The company's first product offering was life insurance and it was instrumental in introducing the concept of Group Term Life Insurance (also called Group Life Insurance), an industry first. In 1961 it started operating life assurance schemes for both employees and others. In 1976, it set up the term business (Telephone Claims Management)(TCM) which is the first of its kind in India.

The company first entered the property insurance business in 1972, and other new product offerings included marine insurance and fire & allied covers. In 2007 National Insurance Corporation was offering life insurance with a single premium investment option along with a term plus investment option.

In 2008 National Insurance started offering asset management products through its subsidiary National Asset Management Company Ltd (NAMCO) under the brand name I-Asset; it also began to offer wealth management products under this brand name.

As of October 2009, National Insurance also has ventured into the Health Insurance business in association with Max Bupa Health insurance company. The health insurance product will be called Max Bupa Health Insurance Co Ltd.


The growth in both revenues and profits (see figure) has been more than impressive over recent years. Growth in profits has been more than five-fold from Rs.591 million in 2003-04 to Rs.3,913 million in 2008-09, whereas the total income grew from Rs1,158 crore to Rs4758 crore during the same period.

On the other hand, growth in revenues has been more than 10-fold from Rs1231 crore in 2003-04 to Rs4575 crore in 2013-14. This growth has mainly been driven by the Life Insurance business (from Rs12.77 to Rs2,866 crore) and Property Insurance (from Rs32.94 to Rs718.69 crore).

The company released its Half-Yearly Financial Reports for the quarter ended 30 September 2014 on 5 October 2014 and 16 November 2014.

This section provides a brief description of the major policy initiatives undertaken by NIC since 1993 which have significantly changed the way insurance is provided to its customers.


In 1993, National Insurance launched the Insurance-Linked Investment Product (ILIP) as a new form of insurance product. ILIP was the first in a series of innovation initiatives undertaken by NIC. 

This was followed by the first direct marketing campaign in 1994 with its "Insurance Adds Up" campaign and then came "Mera Rakshak, Mera Desh" in 1999—the first major communication initiative of the public sector insurance companies to reach out to all citizens in rural areas. The policy initiative aimed to reach out to 1 billion people but only 100 million people were covered under funeral and life cover.

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