GICRE is India's largest reinsurer but continues to make high underwriting losses mainly in its foreign operations (1H:125%). We thus remain concerned of company's plans to increase foreign business. We estimate an FY22E adj. RoE of just 10.0%, and with stable growth we can at best assign a valuation of just 0.8x Sep-21E ABV. Given recent run up in price, we downgrade the stock to NEUTRAL with an unchanged TP of Rs 250 (0.8x Sep-21E ABV). GICREs 2QFY20 saw a NEP increase 7.5% YoY to Rs 118.6bn; COR (calc.) declined 208bps YoY to 125.1%. High COR in foreign operations is a concern, as GICRE failed yet again to meet its guidance of lower COR.