New India Assurance: FY27 profit may get capital gains boost from NSE stake sale, but watch underwriting loss (opens original article in a new tab)

NIACL's stock surged after NSE IPO prospectus revealed it as a selling shareholder, with potential capital gains from NSE stake sale but facing underwriting losses and high combined ratio.

• NIACL owns 35 million NSE shares acquired at a negligible cost
• NIACL's combined ratio was 116.7% in FY26, indicating underwriting loss
• Investors expect NIACL to gain ₹2,000 crore in capital gains from NSE stake sale in FY27
• NIACL's P/E ratio is 18, lower than ICICI Lombard's 28