Shares of public sector insurance company Life Insurance Corporation of India (LIC) jumped 9.71 per cent on company’s plans to launch 3-4 new products over the coming months to push growth in its new business premium (NBP).
In an interview to PTI, LIC Chairman Siddhartha Mohanty said that the state-run insurer was projecting a double-digit growth in the current financial year over the last year. LIC intends to achieve this goal by launching some new attractive products, Mohanty revealed.
LIC is going to launch one product in the first week of December, he said, hoping that it will attract a lot of traction in the market. In addition, he said, loan facility and premature withdrawal would also be a feature of the new product.
Guaranteed return products are in the interest of policyholders and shareholders, he said, adding that many shareholders are also policyholders. “So, it is a dual benefit for policyholders,” he had said.
The stock has been a market laggard and returned just approximately 3% returns in the last 12 months as against 8% returns given by the Nifty. In 2023, its performance has been even worse with over 9% price erosion over the previous year.
Additionally, shares of other public sector insurance companies also rose General Insurance Corporation (GIC) and the New India Assurance Company (NIACL) jumped up to 17 percent on November 24 morning.
GIC shares, too, were in demand, with the stock surging 14 percent to hit a fresh 52-week high of Rs 301.80. The sharp rise comes a day after the company said that AM Best re-affirmed the existing ratings and additionally assigned India National Scale Rating (NSR) to the company.
NIACL jumped more than 17 percent to hit a fresh 52-week high of Rs 208, a day after the insurer said analysts and institutional investors will meet senior management in Mumbai on November 29. The stock has jumped 36 percent in the last five sessions.
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