Life Insurance Corporation of IndiaThe country’s largest insurer jumped the most in eight months on expectations of double-digit growth in new business premiums.
The insurer is expecting higher growth based on recent trends showing a pick-up in personal retail business. Chairman Siddharth Mohanty told local news agency, Press Trust of India, in an interview published on Thursday.
Its shares jumped as much as 10.4%, the most since March 24, while trading volume increased. State-run general insurers New India Assurance Company and General Insurance Corporation of India also recorded profits. The improved outlook for the sector underlines the potential for insurers as the Indian economy grows faster than most major peers.
“Premium growth in the first half of the year was not very good. Hopefully, going forward they will grow in double digits and gain some market share,” Mohit Mangal, analyst at BOB Capital Markets Ltd., said over phone on Friday.
LIC Premium rallies more than 10% on growth optimism
LIC’s new business premium income grew 6.9% in the last financial year ending March. The growth in the first half of this financial year was less than 3 percent.
The LIC chairman’s comments come after the Reserve Bank of India last week banned unsecured lending by banks and shadow lenders to curb a sustained rise in risky consumer loans, sending the shares tumbling.
Shares of non-lending companies such as insurance companies and asset managers are safer places than banks, Jefferies said in a report on Thursday after India’s central bank asked banks to conduct stress tests and avoid “excessiveness”. Had warned.
“Some of the hot money may move from lenders to insurers after these actions,” said Kranthi Bathini, director of equity strategy at Wealthmills Securities Pvt Ltd.
The insurer is expecting higher growth based on recent trends showing a pick-up in personal retail business. Chairman Siddharth Mohanty told local news agency, Press Trust of India, in an interview published on Thursday.
Its shares jumped as much as 10.4%, the most since March 24, while trading volume increased. State-run general insurers New India Assurance Company and General Insurance Corporation of India also recorded profits. The improved outlook for the sector underlines the potential for insurers as the Indian economy grows faster than most major peers.
“Premium growth in the first half of the year was not very good. Hopefully, going forward they will grow in double digits and gain some market share,” Mohit Mangal, analyst at BOB Capital Markets Ltd., said over phone on Friday.
LIC Premium rallies more than 10% on growth optimism
LIC’s new business premium income grew 6.9% in the last financial year ending March. The growth in the first half of this financial year was less than 3 percent.
The LIC chairman’s comments come after the Reserve Bank of India last week banned unsecured lending by banks and shadow lenders to curb a sustained rise in risky consumer loans, sending the shares tumbling.
Shares of non-lending companies such as insurance companies and asset managers are safer places than banks, Jefferies said in a report on Thursday after India’s central bank asked banks to conduct stress tests and avoid “excessiveness”. Had warned.
“Some of the hot money may move from lenders to insurers after these actions,” said Kranthi Bathini, director of equity strategy at Wealthmills Securities Pvt Ltd.
(TagstoTranslate)Life Insurance Corporation of India(T)LIC Stocks(T)LIC Shares(T)LIC(T)Chairman Siddharth Mohanty