Field day for insurance sector stocks; GIC, New India Assurance share prices up almost 20 pct

Market Expert Sandeep Jain said that the PSU insurance stocks are very undervalued. These stocks have not participated in the market rallies and GIC has been one of the biggest underperformers amid the coronavirus phase. It has also fallen significantly during this period

Finance Minister Nirmala Sitharaman in the Budget 2021 had said that the government is working on its plans to privatise a government insurance company

The Insurance Companies were the toast of the day with shares of life insurance and general insurance companies among gainers. One of the reasons was the news around the privatization of a state-run insurance company. The Finance Minister Nirmala Sitharaman in the Budget 2021 had said that the government is working on its plans to privatise a government insurance company. Zee Business’ Research Analyst Devanshi Asher has this detailed report.

The divestment of majority share in the re-insurance company is on the cards, she said. The government holds 85.78 per cent share in the GIC Re.

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This has created great action in the companies like General Insurance Corporation of India (GIC) and New India Insurance, she said.

New India Insurance shares were up by almost 19 per cent which ended the day around Rs 164. The GIC stocks are trading around Rs 170, also up by 20 per cent.

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The premiums on policy are likely to rise from 1 April 2021. This has also impacted the share prices.

The life Insurance Companies were also in focus on Thursday. It is expected that the premiums will increase for life insurance and general insurance companies.

The claims for insurance companies were higher than expectations on the back of Coronavirus Pandemic, she said.

Market Expert Sandeep Jain said that the PSU insurance stocks are very undervalued. These stocks have not participated in the market rallies and GIC has been one of the biggest underperformers amid the coronavirus phase. It has also fallen significantly during this period.

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