New India Assurance: FY27 profit may get capital gains boost from NSE stake sale, but watch underwriting loss
Awaiting price reaction for this filing.
New India Assurance (NIACL) shares surged almost 30% in three days after NSE's draft IPO prospectus listed NIACL as a selling shareholder, but the rally is largely driven by potential one-time capital gains. NIACL holds 35 million NSE shares now valued at around ₹7,000 crore, which could translate to roughly ₹2,000 crore in capital gains in FY27, yet the core insurance business remains weak with a combined ratio of 116.7% and an underwriting loss of ₹6,568 crore in FY26. Net profit of ₹1,384 crore in FY26 grew 40% on the back of capital gains nearly doubling to ₹5,477 crore, while the share of sustainable investment income (interest, rent, dividend) fell from 65% to 50%, prompting the article to flag sustainability concerns and a relatively lower FY27 PE multiple of 18 for NIACL versus 28 for ICICI Lombard.