New India Assurance advances after strong Q2 outcome

The New India Assurance Company gained 2.68% to Rs 700 at 09:19 IST on BSE after net profit surged 187.53% to Rs 748.27 crore on 16.01% rise in total income to Rs 6230.87 crore in Q2 September 2017 over Q2 September 2016.

The result was announced after market hours yesterday, 15 November 2017.

Meanwhile, the S&P BSE Sensex was up 112.77 points or 0.34% at 32,873.21.

So far, 5,396 shares were traded on the counter on the BSE. The stock had hit a high of Rs 703 and low of Rs 688 so far during the day. The stock had hit a record high of Rs 749 on 13 November 2017. The stock had hit a record low of Rs 680 on 15 November 2017.

The large-cap company has an equity capital of Rs 412 crore. Face value per share is Rs 5.

The New India Assurance Company said that increase in profitability was contributed to by significant improvement in the combined ratio which dropped to 112.57% in Q2 September 2017 compared to 124.24% in Q2 September 2016. The adjusted combined ratio dropped to 91.45% in Q2 September 2017 compared to 103.65% in Q2 September 2016 largely driven by improvement in claims ratio and expenses of management ratio.

The gross written premium rose 12.18% to Rs 6489.15 crore in Q2 September 2017 over Q2 September 2016.

G Srinivasan, CMD of New India Assurance, said the results of the company had improved substantially due to drop in claims ratio and operating expense ratio due to various steps taken by the company.

Shares of The New India Assurance Company listed on the bourses on 13 November 2017 at Rs 748.90, a discount of 6.38% from the issue price of Rs 800. The stock settled at Rs 725.05 on BSE, a discount of 9.37% compared with the issue price on that day.

The New India Assurance Company's initial public offering (IPO) received bids for 14.33 crore shares compared with 12 crore shares on offer, as per NSE data. The IPO was subscribed 1.19 times. The price band for the issue was Rs 770-800 per share.

The New India Assurance Company, a century old public sector general insurance company, is the largest general insurance company in India in terms of net worth, domestic gross direct premium, profit after tax and number of branches as of and for FY2017. The operations of the company are spread across 29 states and seven Union Territories in India and across 28 other countries globally through a number of international branches, agency offices and Subsidiaries including a desk at Lloyd's, London.

Powered by Capital Market - Live News