New India Assurance shares list at over 6 per cent discount
``Our combined ratios initially will come down to 105 by next financial year and adjusted combined ratio will come down to 90 from 95''.
Shares of New India Assurance made a sluggish debut at bourses on Monday, falling over 6 per cent against the issue price of Rs 800.
The stock listed at Rs 748.90, down 6.38 per cent, compared to the issue price on the BSE. At the NSE, shares of the company debuted at Rs 750, a loss of 6.25 per cent from the issue price.
In terms of equity volume, 3.14 lakh shares of the company were traded on the BSE and over 19 lakh shares changed hands at the NSE during the morning trade.
The Rs 9,700-crore IPO was oversubscribed 1.19 times during November 1-3.The portion set aside for qualified institutional buyers (QIBs) was oversubscribed 2.34 times, non-institutional investors 12 per cent and retail investors 11 per cent, according to data available with the NSE. The price band for the offer was set at Rs 770-800 per share.
Commenting on the recent mandatory stipulation of the insurance regulator IRDAI to link all insurance policies with Aadhaar card, G Srinivasan, CMD, NIA said , `` Linking of Aadhar card with insurance policy will be a difficult task for the industry as at NIA alone, we have got two crore customers and doing the job for each of the policyholders will be a difficult task to achieve. Iit may take 2-3 months' time for to complete Aadhaar linking process.’’
`` We will see improvement in claims ratio and combined ratios. Our combined ratios initially will come down to 105 by next financial year and adjusted combined ratio will come down to 90 from 95. We have taken steps to rationalise the prices of our products.The general insurance is an evolving Industry. A lot of collaborative actions are needed in managing claims,’’ he said.
NIA’s crop exposure was lower last year.The company has provided five per cent in crop portfolio this year which is likely to grow to 20-25 per cent by the next fiscal. However , he clarified, monsoon has been good this year.
At NIA, the retail segment is growing faster than that of corporate due to its growing awareness. Retail is growing faster as India is under penetrated,he said
NIA has assets of over Rs 69,000 crore and has been growing at a CAGR of over 15 per cent for the last five years.Srinivasan further said NIA has a large technical reserves of 28,000 crores.