A series of unfortunate events have hit New India Assurance and GIC Re. Respite may not be quick.
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Fishermen and locals push a boat onto a truck after relief operations in Alappuzha, Kerala, after the state's worst flood in nearly a century.
Synopsis
The general-insurance sector is catching a cold in the aftermath of extreme climate events, the implosion of IL&FS, and stagnation in crop insurance. And the chill is showing in two of the sector’s biggest names.
Insurance shares an umbilical bond with misfortune — it lives off the fear of bad times. So, it’s a quirk of fate when insurers themselves hit a rough patch. That’s what has befallen India’s general-insurance sector. Thanks to a vicious mix of adversities, GIC Re and New India Assurance (NIA), the only two listed, state-owned companies in the sector, have made a bleak financial show in the first half of the current fiscal. The trend could
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