New India Assurance’s stock has surged 17 percent to reach Rs 204, while General Insurance Corporation’s stock has increased over 12 percent to Rs 297 on the BSE, both hitting 52-week highs. Meanwhile, the Life Insurance Corporation of India has seen a 7 percent increase, reaching Rs 662.
In a positive development, GIC announced that a rating agency has re-affirmed the existing ratings and additionally assigned India National Scale Rating (NSR) to the General Insurance Corporation of India. Furthermore, GIC’s Financial Strength Rating outlook has been revised to Positive from Stable, with the Long-Term Issuer Credit Rating outlook revised to positive from negative.
During an investor presentation, Neerja Kapur, CMD of New India Assurance Company, highlighted the challenges faced in Q2FY24, with the company suffering CAT losses due to floods amounting to a net of Rs 301 crore during the quarter. Additionally, adverse development in the aviation portfolio of about 50 Cr was observed, along with reported losses of about 71 Cr in foreign operations driven risk losses in Dubai operations and CAT losses in UK operations.
Despite these challenges, there was growth in the Motor and Health portfolio, with expectations for improved profitability in the future. The agency channel has also been growing at a healthy pace, and the company anticipates delivering improved results in the coming quarters, according to Kapur.