New India Assurance is a government owned multinational general insurance company. It offers personal, liability, commercial, social insurance, and industrial products.
New India Assurance Market Capitalisation
The market capitalisation of the company, as of March 2018, is close to Rs.58,215.60 crore.
New India Assurance Wealth and Recent PerformanceAnnual report for the financial year 2017–2018
From the global performance review performed by the company, we can see that:
- The global premium increased from Rs.23,021 crore in the FY17 to Rs.26,554 crore in the FY18. This marked an increase of just over 15% in FY18 compared to FY17.
- The net premium increased almost 13% from Rs.18,590.92 crore in FY17 to Rs.20,956.35 crore in FY18.
- The premium earned increased from Rs.17,814.78 crore in the previous financial year to Rs.19,724.60 crore in the current financial year.
- The net commission increased from Rs.1,323.14 crore in the previous year to Rs.1,824.01 crore in the current year.
- The operating expenses decreased from Rs.3,782.02 crore in FY17 to Rs.3,529.02 crore in FY18.
- The profit after tax in FY18 amounted to Rs.2,200.91 crore, up from Rs.1,007.93 in the previous year.
- Paid-up capital in FY17 was Rs.200 crore and doubled to Rs.412 crore in FY18.
- Reserves and surpluses grew from Rs.11,970.16 crore in FY17 to Rs.15,277.22 crore in FY18.
- The total assets of the company grew from Rs.69,172.81 crore in FY17 to Rs.76,626.79 crore in FY18.
From the audited statement of standalone results for the final quarter of the financial year spanning 2017–2018, we can observe the following:
- The total income of the company rose from Rs.5,900.68 crore in the previous quarter to Rs.6,060.48 crore in current quarter.
- The net income from investments grew from Rs.826.66 crore in the quarter ending December 2017 to Rs.845.02 crore in the quarter ending March 2018.
- The net premium earned was Rs.5,215.46 crore in the quarter ending March 2018. The net premium earned in the quarter ending December 2017 was Rs.5,074.02 crore. Thus, it can be seen that there was an increase in the net premium earned over the quarter.
- The total expenses of the company in the final quarter of FY18 came to Rs.5,993.63 crore while it came to Rs.5,538.31 crore in the third quarter of FY18.
- The operating profit for the fourth quarter of FY18 was Rs.66.85 crore whereas it was Rs.362.36 crore in the preceding quarter.
- The company reported Rs.641 crore in profit after tax (PAT) for Q3 ended December 2017 as compared to a loss of Rs.24 crore in the same period a year ago. The underwriting loss, which premium minus claims paid plus operating expenses, came down to Rs.464.30 crore for the quarter ended December 31, 2017 from Rs.1,036.89 crore during the quarter ended December 31, 2016.
- Total income was Rs.5,900.68 crore in Q3 2017, up from Rs.4,729.18 crore during the corresponding quarter of the previous year. The combined ratio dropped to 109.1% in third quarter as against 123.9% in the same period a year ago.
- At the end of Q3, the company’s incurred claim ratio was 82.82% as compared to 95.61% in same period a year ago.
- The company’s Indian business crossed Rs.19,100 crores while the global business crossed Rs.22,270 crores in March 2017.
- The company has been rated AAA/Stable by CRISIL since 2014. This indicates that New India Assurance has the highest degree of financial strength to honour its policyholder's obligations.
- New India Assurance launched its Rs 9,600 crore initial public offering (IPO) in November 2017.
Stock Trends in 2018
- The opening price of the stock at the beginning of January 2018 was Rs.607. It crossed the Rs.700 mark in mid February.
- At the beginning of March, the price of the stock was Rs.713 and it closed at around Rs.700 at the end of the month.
- The stock began trading at about Rs.352 in the beginning of April 2018. The price then dropped to the Rs.330 to Rs.340 range. The share price did not fluctuate much after that through the course of the month. The price held fairly steady with the final price for the month being about Rs.331.
- The price of the share peaked at the close of the second week of May 2018 but dipped after. The stock peaked again at about Rs.373 during the last week of the month but the final price for the month was about Rs.341.
- June 2018 marked a period during which the price of the stock went down with a low of about Rs.309 around mid-month. A final 100% dividend was announced on 27 June 2018. A bonus ratio of 1:1 was announced on 27 June 2018. The stock recovered a little in price towards the end of the month. The closing price for the month was about Rs.317.
- July 2018 marked a period of decline for the share value of the company. The stock dipped below the Rs.300 mark. The final price for the month was about Rs.284.
- August 2018 marked a period of further decline in share prices with the stock going down to about Rs.239 at one point. The stock recovered minimally after this to close with the final price for the month being about Rs.250.
Stock Trends in 2017
- The opening price of the share on November 13, 2017 was Rs.750 but it fell at the beginning of December to Rs.636.
- By the end of December 2017, the price of the stock had fallen to Rs.595.
Should you invest in New India Assurance Company Ltd?
The company stock is just few months old and hence it is too soon to predict the behaviour in the long run. However, New India Assurance is a leader in general insurance with a highest market share. Investing in the share on a long-term gain could be a good decision. However, it is advised to do a thorough decision and take help of a financial expert before investing in New India Assurance.
New India Assurance Company Ltd. is the largest general insurance company in India in terms of domestic gross direct premium, number of branches, profit after tax and net worth.
History of the Company
New India Assurance Company Ltd. was founded by Sir Dorab Tata from the house of TATAs. The largest general insurance company was incorporated on July 23, 1919. It was later nationalised in 1973 with the merger of Indian companies. The company launched its international operations in 1920. With more than 230 products, the company’s market share has increased to around 16% in the last five years. It currently operates in 28 countries. New India Assurance had a net worth of Rs.37,593 as on June 30, 2017. The company’s asset base was Rs.72,576 while the market value was Rs. 56,305. In 2017, the company won the Golden Peacock Business Excellence Award.
Mr. G. Srinivasan - Chairman and Managing Director
With over 34 years of experience in general insurance industry, Mr. G Srinivasan has been heading operations and corporate for New India Assurance as the Chairman and Managing Director since 2012. Prior to this, he was the Chairman and Managing Director at United India Insurance Company Limited. He was also the Managing Director of The New India Insurance Co (TNT) Ltd, Trinidad before joining United India Insurance Company. A commerce graduate, Mr. Srinivasan also holds a degree of Associate of the Institute of Cost & Works Accountants and a Fellow of the Insurance Institute of India.
New India Assurance in NSE and BSE
The stocks of can be bought and sold on the two major stock exchanges in the country - National Stock Exchange and Bombay Stock Exchange. The codes for the same are mentioned below.
BSE - 540769
NSE - NIACL
ISIN - INE470Y01017
Sector - MISCELLANEOUS
87, M G Road, Fort,
New India Assurance Bldg.
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