The New India Assurance Company Ltd. share price target

NIACL is India's largest insurer but continues to make high underwriting losses (9MFY20 COR: 115.8%). We also note company's competitive positioning is only weakening and thus we remain concerned of company's ability of write high quality (profitable) business in the near future. We estimate an FY22E adj. RoE of just 7.1%, and can at best assign a valuation of just 0.65x Dec-21E ABV (less 5% discount for expected 10.4% supply). We rate NIACL a SELL with a higher TP of Rs 130. Driven by a 1,230bps improvement in claims ratio, NIACL reported a better than expected adj. COR of 115.7% (-1,150bps YoY). NEP grew 11.7/4.9% YoY/QoQ to Rs 61.8bn. High investment income (Rs 22.3bn, +65.1% YoY) and low tax rate (17.3%) ensured a high APAT of Rs 10.7bn (vs. -1.1bn in 3QFY19). Post tax one-offs on account of provisioning for gratuity and pension dented profits by Rs 5.8bn to an RPAT of Rs 4.9bn. We retain a SELL with a higher TP of Rs 130.

NIA is India's largest insurer but continues to make high underwriting losses (1H COR: 116.4%). We also note company's competitive positioning is only weakening and thus we remain concerned of company's ability of write high quality (profitable) business in the near future. We estimate an FY22E adj. RoE of just 7.2%, and can at best assign a valuation of just 0.6x Sep-21E ABV (less 10% discount for expected 10.4% supply). Given recent run up in price, we downgrade the stock to SELL with an unchanged TP of Rs 116. While NIA reported a better than expected COR of 118.3% (-610bps YoY), high NEP meant large underwriting losses of Rs 11.0bn (+9.4% YoY). Investment income (Rs 17.1bn, 11.6% yield) and low tax rate (12.2%) ensured a high PAT of Rs 5.6bn (+59.8/99.2% YoY/QoQ). We note improvement in core ICRs but our estimates already build the same and hence remain unchanged.

New India Assurance Company Ltd Q2FY19 results Comment Revenue increased by 0.83% to Rs. 5207.76 Cr in Q2FY19 when compared to the previous quarter. Also, it increased by 10.88% when compared with Q2FY18.

Revenue decreased by 0.97% to Rs. 5164.89 Cr in Q1FY19 when compared to the previous quarter. New India Assurance Company Ltd Q1FY19 results Comment

The New India Assurance Company Ltd (NIA) is the largest general insurer in India in-terms of net worth, domestic gross direct premium, PAT and number of branches as on FY17 and maintaining a market share of above 15% over the last 5 Years. NIA offers a comprehensive and well diversified range of insurance products including motor, fire, crop, and other insurance products through its multiple distribution channels. The company has wide distribution network across India with 68,389 individual agents, 16 corporate agents and 2,452 offices....

Background: New India Assurance Ltd (NIA) is a general insurance company, incorporated in 1919. As of 1QFY18, their operations are spread across 29 States and 7 Union Territories in India through 2452 offices and across 28 other countries globally through a number of international branches, agency offices, subsidiaries(3) and associate companies(2) including a desk at Lloyd's, London. Their distribution network in India includes 68,389 individual agents and 16 corporate agents, bancassurance arrangements with 25 banks in India, and a large number of OEM and automotive dealer arrangements through their agent and broker network. Its revenue flows from well diversified product range across fire, marine, motor, crop, health and other insurance segments, with ~230 customized products (1QFY18), including various industry specific products. In FY17, NIA had acquired largest market share of 15% of gross...

The New India Assurance Company Ltd. (NIA) is the largest general insurance company in India in terms of Net Worth, Domestic gross direct premium, profit after tax and number of branches for the FY17. In FY17, it had the highest market share of gross direct premium among general insurers in India. NIA's gross direct premium from fire, engineering, aviation, liability, marine, motor and health insurance represented a market share of 19.1%, 21.9%, 29.6%, 18.2%,...

Issue Open: November 01 - November 03 2017 Issue Open: November 01 - November 03 2017, Price Band: Rs. 770 - 800 ( A discount of Rs 30 is offered to investors in retail Category and to the Eligible Employees) Issue Size: 120,000,000 Equity Shares (Fresh Issue of 24,000,000 eq sh + Offer for sale of 96,000,000 eq sh), Offer Size: Rs.9240 - 9600 crs

The New India Assurance Company Ltd (NIA) is the leader in the non-life insurance in India, controlling hefty 15% market share in terms of gross direct premium (`23,230cr). It issued 27.10 million policies across all product segments. NIA is also market leader in Fire, marine, Motor & health insurance with market share of 19.1%, 21.1%..

New India Assurance (NIA) is the largest general insurance company in India in terms of net worth, domestic GDPI, PAT and branch count as on FY17. As of FY17, it had issued 27.1 million policies across all product segments. This is the highest among all general insurance companies in India. NIA offers a comprehensive and well-diversified range of products, including motor, health, crop/weather, fire, personal accident, marine, engineering insurance, through multiple distribution channels. As of June 30, 2017, NIA had 68,389 agents, 16 corporate agents, 25...

It has a solvency ratio of 2.2x and is one of the highest in the Rajnath Yadav industry. Moreover it is above the regulatory requirement of 1.5x. Research Analyst (022 - 6707 9999; Ext: 912) Solvency ratio measures the company's ability to meet its obligations. In other words, is indicated how financially sound is the Email: rajnath.yadav@choiceindia.com insurer in meeting the claim payments. Profitability in the general insurance companies is dependent on the underwriting performance and investment returns. The company has a combined ratio of 119.7% as against the industry average of around 115%. The combined ratio is calculated by taking the sum of incurred losses and expenses and then dividing it by the earned premium. A ratio below...

The New India Assurance Co. Ltd. (NIA) is the largest general insurance company in India in terms of net worth, domestic gross direct premium, profit after tax and number of branches as of FY17 (Source: CRISIL Report). Company has been in operation for almost a century. In FY17, it had the largest market share of gross direct premium among general insurers in India (Source: CRISIL Report). As of March 31, 2017, NIA had issued 27.10 million policies across all product segments, the highest among all general insurance companies in India (Source: CRISIL Report). As of June 30, 2017, its operations were spread across 29 States and seven Union Territories in India and across 28 other countries globally through a number of international branches, agency offices and Subsidiaries including a desk at Lloyd's, London. NIA's insurance products can be broadly categorized into the following product verticals: fire insurance; marine insurance,...

The Company proposes to utilize the Net Proceeds towards meeting its future capital requirements which are expected to arise from the growth and expansion of its business, improving...