PSU insurers on a tear; LIC, General Insurance and New India Assurance gain up to 17%

Shares of public sector insurance companies Life Insurance Corporation of India (LIC), General Insurance Corporation (GIC) and the New India Assurance Company (NIACL) jumped up to 17 percent on November 24 morning.

LIC jumped 9 percent to Rs 674.65 after the insurance behemoth said it lined up three-four product launches in the coming months to achieving double-digit growth in new business premium in the current financial year.

“We are projecting double-digit growth over the last year. We are going to achieve that because a recent trend is showing an uptick in individual retail business. In order to further reinforce our commitment, we are going to launch some new attractive products,” LIC chairman Siddhartha Mohanty said.

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General Insurance Corp at a 52-week high

GIC shares, too, were in demand, with the stock surging 14 percent to hit a fresh 52-week high of Rs 301.80. The sharp rise comes a day after the company said that AM Best re-affirmed the existing ratings and additionally assigned India National Scale Rating (NSR) to the company.

In the past two weeks, GIC has surged 27 percent.

On the financial strength scale, AM Best assigned a B++ (good) rating to GIC, and revised the outlook to “positive” from “stable”.

It also assigned a bbb+ (good) rating to long-term issuer credit, accompanied by an upgraded outlook to “positive”. GIC also received an aaa.IN (exceptional) NSR rating with a stable outlook.

New India Assurance zooms

NIACL  jumped more than 17 percent to hit a fresh 52-week high of Rs 208, a day after the insurer said analysts and institutional investors will meet senior management in Mumbai on November 29. The stock has jumped 36 percent in the last five sessions.

Also Read | NIACL surges to new 52-week high on investor meet announcement

The NIACL management will be represented by CMD Neerja Kapur and other top officials during the meeting which is keenly awaited after the firm reported a one-off loss in the September quarter.

The conference call will be initiated with a brief management discussion on financial results for the fiscal second quarter, which was announced earlier this month, the company said in an exchange filing.

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