It is a little-known fact outside the insurance industry that most general insurance companies make losses out of their core insurance business. It is out of the investment income that some of the general insurance companies are out of the red. There are a variety of reasons why this is happening – fierce competition, the entry of a large number of new players almost every year, and lower-than-expected operational efficiencies.
Riding on the highs of the market United India sold most of its shares held in Dunlop. The share has been performing well in the current markets and United India Insurance Company has sold 2.64 lakh shares in the last 6 months. It currently holds 0.004% shares in Dunlop, down from 0.41% some 6 months back
LIC is a major shareholder in Dunlop as of now. In fact, LIC is one of the insurance companies, in both the life insurance and general insurance sector which makes handsome gains out of both its core insurance business and the investment business.
The insurance industry plays a major role in the markets as they typically have long-term cash and with a mix of traditional plans and investment, plans look to maximize returns for their investors.
