There is good news on the front of government general insurance companies. After staying in loss for many years, the four government general insurance companies have come into profit. The Ministry of Finance has issued a statement about this. The Oriental Insurance Company and the National Insurance Company have made profits in the fourth quarter of the previous financial year and the second quarter of this financial year. The United India Insurance Company has come into profit after seven years. It earned a profit in the third quarter of this financial year.
NIACL remains in continuous profit
New India Assurance Company (Niacl) It remains in profit. The government has provided capital of Rs 17,450 crore to these four government general insurance companies between FY20 to FY20. It has seen a good effect. These companies have come out of loss of 10,000 during FY22-23. All these companies have come into profit in the third quarter of this financial year. His total profit was Rs 1,066 crore. These companies have decided to focus on financial stability. For this, the company will focus on improvement in services along with strategic measures.
Pressure on new India shares
The Finance Ministry said in a statement that companies will try to offer high-quality insurance products. Also, companies will try to meet the big target of ‘Insurance for All’ by 2047. It will also affect the New India Assurance Company (NIACL). On February 17, the stock saw a decline. The stock fell 1.21 per cent to Rs 153 at 2:20 pm. In the last one year, the price of this stock has fallen to half. On February 19, 2024, this stock was Rs 300. NIACL’s IPO came in 2017. The company’s shares were listed on 13 November.
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Insurance stock performance weak in the last one year
In a year, the performance of insurance companies has not been good. These include both general and life companies. The stock of ICICI Lombard General has risen just 4.49 percent in the last one year. This stock has fallen 14.67 percent in the last six months. The stock of SBI Life Insurance has fallen by about 1 percent in the last one year. In the last six months, this stock has dropped about 12 percent. LIC’s stock has broken more than 27 percent in the last one year.