On Friday, stocks of public sector insurance companies in India experienced significant gains, with New India Assurance leading the surge with a substantial 17% increase. The stock of New India Assurance reached Rs 204, marking a 52-week high. General Insurance Corporation also saw a notable rise, up more than 12% at Rs 297, reaching its 52-week high.
Life Insurance Corporation of India (LIC) witnessed a 7% increase, reaching Rs 662. The positive momentum in PSU insurance stocks comes as GIC (General Insurance Corporation) reported that a rating agency has re-affirmed existing ratings and assigned an India National Scale Rating (NSR) to GIC.
GIC's Financial Strength Rating outlook was revised to Positive from Stable, and the Long-Term Issuer Credit Rating outlook was revised to positive from negative.
During an investor presentation, Neerja Kapur, CMD of New India Assurance Company, acknowledged the challenges faced in Q2 FY24, citing it as one of the most challenging quarters in recent times. The company experienced Catastrophic (CAT) losses due to floods amounting to a net of Rs 301 crore during the quarter.
Adverse developments in the aviation portfolio, approximately Rs 50 crore, and losses in foreign operations (Rs 71 crore) were also reported, driven by risk losses in Dubai operations and CAT losses in UK operations. Despite these challenges, the Motor and Health portfolio registered growth, and the company anticipates improved results in the coming quarters. The agency channel has also shown healthy growth, contributing to the company's positive outlook.
(With Agency Inputs)
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