ICICI Lombard, Go Digit to New India Assurance: Why are general insurance stocks rising? EXPLAINED
Stock Market Today: ICICI Lombard, Go Digit to New India Assurance, the general insurance stocks, gained during the intraday trades on Wednesday despite weak markets.
The gains in the general insurance stocks, such as ICICI Lombard General Insurance Company Ltd., Go Digit General Insurance Ltd , The New India Assurance Company Ltd., and others, are fueled by the fact that there are speculation about the Government of India (GoI) approving the Insurance Regulatory and Development Authority of India or IRDAI's proposal to raise term plan insurance premiums. Led by these expectations, the general insurance stocks are rising today.
Avinash Gorakshkar, Head of Research at Profitmart Securities, attributed the rise in general insurance stocks to the buzz about the Government of India (GoI) considering approving IRDAI's suggestion for a hike in the term plan insurance premiums by around 18%.
This has triggered buying buzz in general insurance stocks, as Dalal Street believes the GoI move would fuel revenue and profit of the general insurance companies by around 4% to 5%, said Gorakshkar. However, it is completely speculative, as the GoI has yet to make any announcement, added Gorakshkar. Those who have a high risk appetite can look at ICICI Lombard shares, as it has the highest market share and business volume, said Gorakshkar.
The general insurance industry posted growth of 6.5% year-on-year in May '25, as per JM Financial Institutional Securities data. The segmental data continued to signal positive signs in May 2025—fire grew 17% year-on-year to ₹ 26000 crore, engineering grew 35% to ₹ 520 crore, and health grew 9% year-on-year to ₹ 9100 crore, as per JM Financial.
Despite the general insurance sector's modest like-to-like growth of 8.6%, FY26 got off to a robust start in April and May, with YoY growth of 10% plus as per JM Financial. Their preferred insurer at the current market price is ICICI Lombard, which they value at 32 times FY27 estimated earnings per share of ₹ 67 with a target price of INR 2,150 for growth of 13% and 15% in FY26 and FY27, respectively, and an RoE that is continuously over 17%.
General insurance stocks, such as ICICI Lombard General Insurance Company Ltd., Go Digit General Insurance, and The New India Assurance Company, among others, gained up to 1.5% during the intraday trades on Wednesday despite weakness in the Indian stock markets.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Wire
33 minutes ago
- The Wire
AlphaGrep Receives In-Principle Approval from SEBI to Sponsor Mutual Fund
MUMBAI, India, June 19, 2025 /PRNewswire/ -- AlphaGrep Securities, a leading quantitative investment firm specializing in systematic strategies, is pleased to announce that it has received the in-principle approval from SEBI to sponsor a Mutual Fund. This approval marks a significant milestone in AlphaGrep's journey to bring its data-driven, technology-powered investment capabilities to a broader retail and institutional investor base in India. Founded by Mohit Mutreja and Parshant Mittal in 2010, AlphaGrep has built a specialised quant trading and investment platform. AlphaGrep manages more than Rs 8500 crs globally. Founded on the principles of transparency, discipline, and research-led decision making, AGIM has established itself as a pioneer in quantitative and algorithmic investing in India. With a proven track record of managing alternative assets and delivering risk-adjusted returns, the firm now aims to democratize access to sophisticated investment strategies through its upcoming suite of mutual fund products. Bhautik Ambani, CEO of AlphaGrep Investment Management, said, "We are grateful to SEBI for granting us the in-principle approval and for fostering an environment that encourages innovation in asset management. This development reinforces our long-term vision of offering investors access to differentiated, systematic and quant-driven investment solutions grounded in technology and data science." The new mutual fund business will operate under the same quantitative philosophy that has driven AlphaGrep's success – combining advanced mathematical models, machine learning, and a disciplined approach to portfolio construction. The firm plans to offer a range of quant-driven actively managed products catering to diverse investor needs, including equity and hybrid strategies. The final registration and operational launch are subject to the fulfilment of SEBI's prescribed requirements. About AlphaGrep Investment Management (AGIM): AlphaGrep Investment Management (AGIM) is the asset management vertical in India which will house the proposed Mutual Fund business. AGIM with an AUM of more than INR 2000crs and 500 clients across two SEBI registered CAT III AIF's (long-short), Long Only PMS and GIFT city domiciled outbound CAT III AIF. About AlphaGrep Securities: AlphaGrep is a quantitative trading and investment firm. We research and develop algorithmic trading strategies using advanced mathematical and statistical techniques, and trade them across all asset classes on 30 exchanges globally. We are leading market makers and amongst the top market participants by volume on several exchanges and products globally. We are a family of 400 members spread across our 10 offices in Asia, America and Europe. (Disclaimer: The above press release comes to you under an arrangement with PRNewswire and PTI takes no editorial responsibility for the same.). This is an auto-published feed from PTI with no editorial input from The Wire.
United News of India
34 minutes ago
- United News of India
FearrXI to Launch Skill-Based Real Money Fantasy Gaming Platform in India by July 2025
New Delhi [India], June 18: FearrXI, developed by Fearr Fantasy and E Sports Private Limited, is poised to revolutionize the Indian fantasy gaming market with its innovative, skill-based approach, set to launch before mid-July 2025. By pioneering a real-money and skill-based format, distinct from luck-based games, FearrXI offers Indian sports enthusiasts an exciting, tactical, and profitable experience focused on popular sports like cricket, football, basketball, and kabaddi. The name Fearr is inspired by the Irish word for 'better' or 'best', reflecting the company's vision to provide India with a superior fantasy gaming platform. FearrXI rewards knowledge, dexterity, and timing, offering a unique gaming experience. FearrXI offers a wide range of tables, from ₹19 to ₹25,000, catering to both casual and high-stakes players. The platform allows users to create fantasy teams, make predictions based on performance, and compete against others using real money. The app features a clean interface, swift responsiveness, and ease of use, making gameplay and transactions seamless. Additionally, the experience is enhanced by instant withdrawals, flexible deposit options, and a 100 per cent first deposit bonus. For clarity, it is essential to note that the official name of the app is FearrXI, not Fearr11, as it may have been previously assumed. This distinction enables the brand name to establish a unique identity in a crowded market, fostering brand recognition and trust in both the company and the product, FearrXI, from the outset, ultimately solidifying its position as a reputable name in the fantasy gaming ecosystem. One of FearrXI's standout platform features is its innovative approach to GST treatment on deposits. Despite being subject to a 28 per cent GST as per the rules, the platform compensates users in the form of a bonus, effectively turning a tax into an added benefit. This bold move ensures that players feel valued rather than penalized, making FearrXI one of the few sites to successfully leverage taxation as a user advantage. FearrXI is available nationwide, offering a seamless gaming experience on both Android and iOS devices. It provides uninterrupted play, 24/7 fantasy contests, and attractive rewards. With its secure features and customer support, FearrXI is becoming India's top fantasy sports app.
The Wire
34 minutes ago
- The Wire
Step Inside the Future of Indian Strength Equipment
Unrack Factory Open Day on June 20 Bengaluru, Karnataka, India (NewsVoir) After a successful first edition, Unrack Fit, India's homegrown strength training brand, is reopening its factory doors on June 20, an open invitation for fitness professionals, gym owners, and anyone interested to know how strength equipment is made in India. From raw steel to finished barbells, witness how high-performance lifting gear is imagined, engineered, and built entirely in India. Whether you're a gym owner, fitness coach, strength enthusiast, or simply curious about how world-class equipment is made, Unrack's Factory Open Day offers a behind-the-scenes experience you won't find anywhere else. Led by Dr. Sahana, Unrack Fit's Founder and former Strength & Conditioning Coach for British Aquatics, playing a key role in preparing female divers through the Tokyo and Paris Olympic cycles. The walkthrough includes demonstrating raw material handling, polishing, finishing, and product testing. Attendees also had the opportunity to interact directly with the team and try out the equipment on-site. 'This isn't just a tour. It's a conversation about Indian innovation in strength equipment, and why it matters,' says Dr. Sahana. With over seven years in elite sport, including Olympic medal-winning campaigns, her mission is to build world-class equipment from India, for the world. The first open day on June 14 brought together members of the fitness community who spent time understanding the work behind each product. It was not a promotional event. It was about sharing the process, taking questions, and opening up the space. The next factory open day is on June 20. Location: Unrack, Peenya, Bengaluru Register Now: About Unrack Fit Unrack is a Bengaluru-based brand focused on designing and manufacturing strength training equipment in India. Unrack's products are developed in-house, combining performance, durability, and practical design. The company was founded by Dr Sahana, a former Olympic strength and conditioning coach, with a commitment to making high-quality equipment accessible to athletes, gyms, fitness enthusiasts and training professionals. For further information, visit (Disclaimer: The above press release comes to you under an arrangement with Newsvoir and PTI takes no editorial responsibility for the same.). This is an auto-published feed from PTI with no editorial input from The Wire.
