ICICI Lombard, Go Digit to New India Assurance: Why are general insurance stocks rising? EXPLAINED

Stock Market Today: General insurance stocks like ICICI Lombard, Go Digit and New India Assurance gained traction during the intraday trade on Wednesday despite weak markets.

Why are general insurance stocks rising?

The gains in the general insurance stocks, such as ICICI Lombard General Insurance Company Ltd., Go Digit General Insurance Ltd , The New India Assurance Company Ltd., and others, are fueled by the fact that there are speculation about the Government of India (GoI) approving the Insurance Regulatory and Development Authority of India or IRDAI's proposal to raise term plan insurance premiums.

Avinash Gorakshkar, Head of Research at Profitmart Securities, attributed the rise in general insurance stocks to the buzz about the Government of India (GoI) considering approving IRDAI's suggestion for a hike in the term plan insurance premiums by around 18%.

This move, according to Dalal Street investors, could fuel revenue and profit of the general insurance companies by around 4% to 5%, said Gorakshkar. However, it is completely speculative, as the GoI has yet to make any announcement, he added. Those who have a high risk appetite can look at ICICI Lombard shares, as it has the highest market share and business volume, Gorakshkar advised.

General insurance sector—Analyst views

The general insurance industry posted a growth of 6.5% year-on-year in May 2025, as per JM Financial Institutional Securities data. The segmental data continued to signal positive signs in May 2025—fire grew 17% year-on-year to ₹26,000 crore, engineering grew 35% to ₹520 crore, and health grew 9% year-on-year to ₹9100 crore, as per JM Financial.

Despite the general insurance sector's modest like-for-like growth of 8.6%, FY26 got off to a robust start in April and May, with YoY growth of 10% plus, as per JM Financial. 

Its preferred insurer at the current market price is ICICI Lombard, which it values at 32 times FY27 estimated earnings per share of ₹67 with a target price of ₹2,150 for a growth of 13% and 15% in FY26 and FY27, respectively, and an RoE that is continuously over 17%.

General insurance stocks—share price movement

General insurance stocks, such as ICICI Lombard General Insurance Company Ltd., Go Digit General Insurance, and The New India Assurance Company, among others, gained up to 1.5% during the intraday trades on Wednesday despite weakness in the Indian stock markets.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before making any investment decisions.