HDFC Securities: New India Assurance - High Claims Ratio Dents Profits
An agent selling insurance products to customers. (Photographer: Brendon Thorne/Bloomberg)

HDFC Securities: New India Assurance - High Claims Ratio Dents Profits

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Report

Despite being India’s largest insurer, New India Assurance (NIACL) continues to make high underwriting losses.

We note that the company’s competitive positioning is weakening and remain concerned about its ability to write profitable business. We estimate an FY22E adj. ROE of just 6.5% and can at best assign a valuation of just 0.7x Sep-22E ABV (less 10% discount for an additional 10.4% supply).

Click on the attachment to read the full report:

HSIE Results Daily - 13 Nov 20 - New India Assurance.pdf

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