New India Assurance stock zooms 17%

New Delhi, Nov 24 (IANS) PSU insurance companies stocks are zooming on Friday with New India Assurance up a massive 17 per cent.

New India Assurance is up 17 per cent at Rs 204. General Insurance Corporation is up more than 12 per cent at Rs 297 on BSE. Both stocks hit 52 week highs.

Life Insurance Corporation of India is up 7 per cent at Rs 662.

GIC said that rating agency has re-affirmed the existing ratings & additionally assigned India National Scale Rating (NSR) to the General Insurance Corporation of India.

GIC’s Financial Strength Rating outlook revised to Positive from Stable, Long-Term Issuer Credit Rating outlook revised to positive from negative.

In an investor presentation, Neerja Kapur, CMD, New India Assurance Company said Q2FY24 was one of the most challenging quarters for the company in recent times. The company suffered CAT losses on account of floods amounting to net of Rs 301 crore during the quarter.

There was adverse development in the aviation portfolio of about 50 Cr. The foreign operations were also under pressure as they reported losses of about 71 Cr during the quarter driven by risk losses in Dubai operations and CAT losses in UK operations, Kapur said.

While a confluence of multiple events affected the results for the quarter, Motor and Health portfolio registered growth. The profitability of these lines should improve going forward.

Agency channel has also started growing at a healthy pace. The company expects to deliver improved results in the ensuing quarters, Kapur said.