The insurance sector in India got a boost recently after the finance ministry proposed amendments that would allow insurers to obtain a common license for all insurance businesses instead of multiple licenses that are currently required to sell insurance products. In addition to that, the government will now allow the distribution of other financial products like mutual funds.
The insurance stocks in India cheered the move and here are 2 stocks that gained more than 10% on Friday:
New India Assurance Company Ltd
The shares of New India Assurance Company opened at Rs 116.70 levels and gained as much as 11 percent to trade at Rs 127 levels till the afternoon on Friday. The stock has been gaining since the time of the announcement and has zoomed by 16 percent in the last five days and in the past two months, it has gained 45 percent.
The New India Assurance Company Ltd, founded by Sir Dorabji Tata in 1919, is a central public-sector undertaking and is the largest nationalized general insurance company in India and has an international presence across 26 countries. The company has a market capitalization of Rs 20,962 Crores.
In Q2FY23, the company reported a total revenue of Rs 7,308.47 Crore as against Rs 7,479.29 Crore in the same period a year earlier. In the quarter under review, their net profit stood at Rs 33.45 Crore compared to Rs 127.43 Crore in Q2FY22.
General Insurance Corporation of India
The shares of General Insurance Corporation also rallied as it opened at Rs 170 and gained as much as 10 percent to trade at Rs 183 levels till the afternoon on Friday. The stock has zoomed by 13 percent in the last five days and in the past two months, it has gained 46 percent.
General Insurance Corporation of India Limited, a central public sector undertaking, was formed for the purpose of superintending, controlling, and carrying on the business of general insurance. It is the holding company of the major general insurance companies in India. The company has a market capitalization of Rs 31,930 Crores.
In Q2FY23, the company reported a total revenue of Rs 8,861.85 Crore as against Rs 10,748.73 Crore in the same period a year earlier. In the quarter under review, their net profit stood at Rs 2,062.03 Crore compared to Rs 1,367.11 Crore in Q2FY22.
Written by Anoushka Roy
