The standalone health insurer posted a loss of ₹87.64 crore in October-December quarter of FY26 as against a profit of ₹13.24 crore in the year-ago period.
“We have more three-year than two-year policies. Due to this, the premium that was deferred last year is now coming into the top line. However, earnings take time to catch up because earned premium always lags written premium, especially with three-year policies. On an Indian-GAAP basis, we will turn profitable by the end of this financial year (Q4FY26). This creates a drag for a few more quarters. Eventually, Indian-GAAP numbers will converge with International Financial Reporting Standards (IFRS),” Mahendra said.
The insurance regulator’s change in accounting norms for multi-year policies effective from October 1, 2025, has weighed on the insurer with earned premium lagging written premium, and the provision made for new labour Code has weighed on the profits of the insurer in the quarter.
The loss of the insurer in April-December quarter of FY26 (9MFY26) stood at ₹214.35 crore as compared to a profit of ₹74.4 crore in the same time period last year.
However, the insurer clocked profits in the IFRS accounting norms. According to the norms, the company recorded an IFRS profit after tax (PAT) of over ₹76 crore for the quarter and ₹208 crore for the period ending December 31, 2025.
The combined ratio of the insurer stood at 102.9 per cent in the 9MFY26, which was around 103.4 per cent in the year-ago period and the insurer aims to reduce it by 100 bps every year on the back of better operating leverage.
“The company plans to grow 600-700 basis points higher than industry growth rate in the retail health insurance on the back of continuous investment in distribution footprint, keep bringing innovative products to fulfil customer needs, keep focusing on providing best services to customers and investment in technology, analytics, AI and other new-age solutions,” Mahendra said.
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