New India Assurance Company posts sharp jump in share prices on account of strong Sept Earnings

Insurance major The New India Assurance Company Limited saw a sharp jump in its share prices with the top mark at Rs. 703. The movement in the share prices has been attributed to the stronger than expected September quarter results. The figures for September stood at more than 748 crore rupees in profit and is way over the 260 crore rupees mark posted in the same period last year. However one must note that the numbers cannot be correlated in the traditional manner as the firm was not listed last year. Image Source - Wikipedia The overall general insurance market has been healthy and has grown at 18 percent with automobiles forming the largest chunk of growth. The competition too has not been a big challenge for the company. The chairman of New India Assurance, Mr. G. Srinivasan mentioned that the strong earnings can be attributed to a mix of issues ranging from a significant drop in claims ration to reduction in operation expense numbers. A lot of management foresight and corrective measures can be attributed to this success. In essence the Chairman claimed that the company was able to sharply grow their business without adding cost which showcases a replicable model for peers in the industry.