LIC, NIACL shares surge up to 19%: What's driving rally
What's the story
On November 24, shares of public sector insurance companies like Life Insurance Corporation of India (LIC), General Insurance Corporation (GIC), and the New India Assurance Company Limited (NIACL) soared by as much as 19%. This surge was a direct result of LIC's announcement of product launches in the coming months and positive developments in GIC and NIACL's businesses. Here's a detailed look into why public sector insurance stocks are on a roll today.
Details
LIC aims for double-digit growth with new product launches
LIC's shares surged 9.2% to Rs. 674.65 after revealing plans to introduce three to four new products in the coming months, aiming for double-digit growth for the current financial year. LIC Chairman Siddhartha Mohanty said, "We are projecting double-digit growth over the last year." "We are going to achieve that because a recent trend is showing an uptick in individual retail business. In order to further reinforce our commitment, we are going to launch some new attractive products," Mohanty added.
What Next?
GIC gets a positive rating from a credit rating agency
GIC shares soared 14.4% to a fresh 52-week high of Rs. 301.80 after an American credit rating agency AM Best re-affirmed the company's existing ratings and assigned India National Scale Rating (NSR) to it. The rating agency gave GIC a B++ (good) rating for financial strength and upgraded its outlook from "stable" to "positive." GIC also received an 'aaa.IN' (exceptional) NSR rating with a stable outlook.
Insights
NIACL to hold an investor and analyst meeting
Meanwhile, NIACL's shares leaped over 19.4% to a new 52-week high of Rs. 208 after announcing a meeting between analysts, institutional investors, and senior management on November 29. From its low point of Rs. 94.15 in March 2023, the stock has surged impressively, delivering a staggering return of over 120%. The stock has climbed 36% in the last five sessions.