New India Assurance shares surge nearly 10% after profit jumps 80% in June quarter

Shares of the state-run insurer, The New India Assurance Company, rose as much as 9.7% to hit an intraday high of ₹190.60 on the BSE a day after it reported earnings for the first quarter of current financial year. On the National Stock Exchange, New India Assurance shares rose as much as 9.83% to hit an intraday high of ₹190.58.

New India Assurance Company on Tuesday post market hours reported that its net profit in the April-June period rose 80% to ₹391 crore from ₹217 crore in the same period last year.

Its gross written premium or the total premiums an insurance company received from policies advanced 13% to ₹13,334 crore from ₹11,788 crore in the year-ago period.

The company's domestic gross direct premium income grew by 15.27% and its market share increased to 15.51% from 14.65% during the same period last year.

During the quarter company launched innovative new products with focus on retail and MSMEs and the company also laid emphasis on growth in segments other than Motor and Health where competitive intensity is high, New India Assurance Company said.

“It gives me great pleasure to inform you that NIACL has achieved a gross written premium of ₹13,334 crore, reflecting a YoY growth of 13.11% in Q1FY26. The domestic gross direct premium during the period grew by more than 15% vis-à-vis the industry which grew by 8.84%. Consequently our market share as per the GI council statistics for the period increased from 14.65% to 15.51%. The healthy growth rate in domestic business was despite a lower growth in Motor LOB where we have taken a more cautious approach considering the current competitive intensity," said Girija Subramanian, CMD of the company.

"Fire, Engineering and Health portfolio registered a healthy growth. The unfortunate incident involving the Air India flight had an adverse impact on the underwriting results. Health segment witnessed a slightly higher loss ratio and some large losses impacted the liability and miscellaneous portfolio as well," Subramanian added.

As of 11:16 am, New India Assurance shares traded 8.92% higher at ₹189.75, outperforming the BSE 500 index which was up 0.18%.

New India Assurance shares were witnessing heavier than usual trading volumes as trading volume spiked by 62 times to 1.69 crore shares as against an average trading volume of 2.71 lakh shares.

As many as 11.60 lakhs shares changed hands on the BSE compared with an average of 26,000 shares traded daily in the past two weeks.