Shares of General Insurance Corporation of India Ltd, The New India Assurance Company Ltd and Life Insurance Corporation of India Ltd were the focus of investors on Friday as shares of public sector general insurers soared as much as 19 per cent in early trade as investors flocked to PSU counters.
Amid the euphoria, The New India Assurance Company Ltd (NIACL) surged more than 19 per cent to Rs 207.75 on the day, its fresh 52-week high, with a total market capitalisation of over Rs 34,000 crore. The stock had closed at Rs 174.50 in the previous session on Thursday.
The stock has returned more than 120 per cent from its 52-week low of Rs 94.15, touched in March 2023. The stock has gained about 60 per cent in 2023, while it has gained 75 per cent in the last six months. The stock has gained 50 per cent in the last one month.
The company is scheduled to hold an investor and analyst meeting on Wednesday, November 2023, to discuss the company’s financial performance in the September 2023 quarter and the first half of the current financial year. The company made the announcement through a stock exchange filing.
Earlier this month, NIACL shared its investor presentation where the company assured of its strong market position, increasing penetration, growth prospects and technological advancements to reaffirm its position as the largest general insurance company in India.
Similarly, shares of General Insurance Corporation of India (GIC-Re) surged about 18 per cent to Rs 301.90 on Friday, hitting new record highs with a total market capitalisation of over Rs 53,000 crore. The stock had closed at Rs 263.55 in the previous session.
The government-owned reinsurer had risen more than 135 per cent from its 52-week low of Rs 127.80, hit in March 2023. The stock has gained about 60 per cent so far in 2023, while the stock has gained 75 per cent in the last six months. The stock has gained 35 per cent in one month.
AM Best reaffirmed the existing ratings and assigned General Insurance Corporation of India an India National Scale Rating (NSR), the company said in a stock exchange filing on Thursday. The outlooks on the financial strength, long-term issuer credit and India National Scale ratings remain stable and positive.
Another state-run giant, Life Insurance Corporation of India (LIC), jumped more than 9 per cent to Rs 674.80 during the day, with a total market capitalisation of over Rs 4.30 lakh crore. However, the stock remained flat on a year-to-date (YTD) basis.
As per market expectations, public sector insurers are in high demand among traders amid the catch-up rally with private insurance players due to their attractive valuations compared to private players. The private players have been rallying in recent weeks.
The general insurance industry witnessed moderate growth due to subdued growth in the motor business. Despite strong festive season sales, headwinds of lower renewals and high competitive intensity led to muted growth for the motor business, Kotak Institutional Equities said in its latest report.
