NIACL is India's largest insurer but continues to make high underwriting losses (9MFY20 COR: 115.8%). We also note company's competitive positioning is only weakening and thus we remain concerned of company's ability of write high quality (profitable) business in the near future. We estimate an FY22E adj. RoE of just 7.1%, and can at best assign a valuation of just 0.65x Dec-21E ABV (less 5% discount for expected 10.4% supply). We rate NIACL a SELL with a higher TP of Rs 130. Driven by a 1,230bps improvement in claims ratio, NIACL reported a better than expected adj. COR of 115.7% (-1,150bps YoY). NEP grew 11.7/4.9% YoY/QoQ to Rs 61.8bn. High investment income (Rs 22.3bn, +65.1% YoY) and low tax rate (17.3%) ensured a high APAT of Rs 10.7bn (vs. -1.1bn in 3QFY19). Post tax one-offs on account of provisioning for gratuity and pension dented profits by Rs 5.8bn to an RPAT of Rs 4.9bn. We retain a SELL with a higher TP of Rs 130.