General Insurance Corporation of India

NSE: GICRE | BSE: 540755 | ISIN: INE481Y01014
121.50 0.40 (0.33%)
NSE Oct 23, 2020 15:31 PM
Volume: 121.8K

HDFC Securities
GICRE is India's largest reinsurer but continues to make high underwriting losses (9M COR: 116%). While price hikes in property will improve underwriting profits, high proportion of crop business will add to volatility. We estimate an FY22E adj. RoE at 9.9%, and thus value GICRE at 0.9x Dec-21E ABV less 5% discount. We rate GICRE a NEUTRAL with a TP of Rs 264. Higher losses in agriculture and property led to increased claims ratio i.e. 107.0%, +2,379/-274bps YoY/QoQ; this resulted in highest (since listing) underwriting losses of Rs 27.4bn. 3QFY20 reported loss was at Rs 10.4bn!
General Insurance Corporation of India has lost -21.92% in the last 3 Months
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