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New India Assurance stock up 3% on strong Sep quarter earnings

Shares of state-owned New India Assurancewent up as much as 3 % to touch an early high of ₹703 as the company posted robust September quarter earnings.

The stock opened on a bullish note at ₹688 and jumped 3.11 % to touch an intra-day high of ₹ 703 on the BSE.

On the NSE, the stock opened at ₹ 692 and jumped 3.09 % to touch an early high of ₹ 703.85.

The companyon Wednesday reported that its net profit for the September quarter stood at ₹ 748.27 crore. Its net was ₹ 260.24 crore in the same quarter of 2016-17, but the numbers are not strictly comparable as the company was not listed last year.

“The earnings have improved substantially due to drop in claims ratio and operating expenses ratio due to various steps taken by the company in the past few months. We’ve been increasing business without adding to the cost,” New India Assurance Chairman G Srinivasan said. .

Going forward, he said that the company is planning to retain its market leadership and grow in line with the market. The general insurance market is growing at 18 %.

He indicated that motor will continue to be its biggest segment, followed by health and crop.

The largest general insurer went public earlier this month, raising ₹9,600 crore, much lower than over ₹11,000 crore initially planned. But this still is the biggest IPO since the ₹ 15,000-crore Coal India issue of October 2012 .

But the company had a tepid market debut this Monday, with the scrip getting listed at ₹ 748.90 on the BSE, a discount of 6.4 % over its issue price of Rs 800. The market also bled that day with over 1 % fall.

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