Abstract

The objective of this paper is to analyse the performance of public sector insurance companies in India through the earning and profitability analyses. The four major PSUs currently operating in the Indian general insurance market are National, Oriental, United India and New India insurance companies. In practice, the Public Sector Units tend to focus their efforts on maintaining a strong status and market position within their local region rather than competing with one another. Although New India is generally regarded as the most successful of the public sector insurers. With an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. The National and Oriental insurance companies have witnessed increasing trend in ratio ranging between 193.07 & 248.93 and 132.83 & 155.39 respectively, while as for United and New India insurers, the capital adequacy ratio has witnessed decreasing trend is ranging between 106.56 & 83.38 and 87.28 & 69 respectively.

Key Words: Companies, Insurance, Performance, Profitability, Public Sector.