November 24, 2024

PSU insurers’ shares see double-digit increase

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MUMBAI: Shares of public sector insurers like LIC, General Insurance Corporation (GIC Re) and New India Assurance saw double-digit gains on Friday, propelled by improved sentiment.
While shares of LIC were up because of growth prospects and new product launches, GIC Re received a boost following an upgrade to its ratings outlook from AM Best.
LIC witnessed a significant surge with its shares rising by 10% – marking its largest single-day gain in over eight months.Sources attribute this increase to news that the corporation plans to introduce a new product with assured benefits, potentially enhancing its market share.
LIC’s shares closed 9.7% higher at Rs 677, contributing nearly Rs 38,000 crore to its market capitalisation. Despite this positive development, LIC’s shares remain 21% below the issue price of Rs 949 when the corporation went public. Institutional investors had initially shunned the shares, leading to a substantial erosion of market value. The government had committed to not diluting shares for two years after the IPO.



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