General Insurance Corporation of India

NSE: GICRE | BSE: 540755 | ISIN: INE481Y01014
121.10 -0.95 (-0.78%)
NSE Oct 22, 2020 15:31 PM
Volume: 141.2K

HDFC Securities
We estimate an FY22E adj. RoE is at 9.8%, and value GICRE at 0.7x FY22E ABV less 10% discount for an additional 10.8% stake to be sold by GoI. GIC Reinsurance: GICRE is Indias largest reinsurer but continues to make significant underwriting losses (1QFY21 COR: 112.9%). A calibrated approach to underwriting is expected to change this over FY21-23E. While we are not entirely convinced about the pathway to underwriting profitability, inexpensive valuations FY22E P/ABV of 0.5xresult in our BUY recommendation with a 9.8% lower target price of Rs 165.
General Insurance Corporation of India has lost -21.18% in the last 3 Months
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