NSE: GICRE | BSE: 540755

General Insurance Corporation of India

122.10 -1.30 (-1.05%)

63.45% Fall from 52W High

Volume: 76,618

NSEOct 21, 2020 01:34 PM

Check Buy or Sell



122.10
-1.05%
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.
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Number of FIIs/FPIs holding stock fell by 7 to 68 in Jun 2020 qtr.
122.10
-1.05%
HDFC Securities
GICRE is India's largest reinsurer but continues to make high underwriting losses (FY20 COR: 113.8%). A calibrated approach to underwriting is expected to change this over FY21-23E. While we are not fully convinced about the pathway to underwriting profitability, inexpensive valuations- FY22E P/ABV of 0.6x result in our BUY recommendation with a TP of Rs 185. We estimate an FY22E adj. RoE at 7.4%, and value GICRE at 0.7x FY22E ABV less 10% discount. We continue to rate GICRE a BUY with a TP of Rs 185 (Mar-22E P/ABV of 0.6x). Higher losses in agriculture and aviation led to increased 4QFY20 claims ratio of 89.1%, +1,917/-1,788bps YoY/QoQ. This resulted in underwriting losses of Rs 7.2bn. Investment income was hit by higher provisions of Rs 3.8bn bringing yield down to 7.7%. 4QFY20 APAT was Rs 12.2bn (+37.5% YoY). NEP: Led by healthy growth in property/health i.e., 71.7/17.5% YoY, 4QFY20 NEP grew 43.6% YoY to Rs 76.6bn. For FY20 the company delivered an NEP of Rs 443.5bn (+16.0% YoY).
General Insurance Corporation of India has lost -24.51% in the last 3 Months
122.10
-1.05%
HDFC Securities
We rate GICRE a BUY with a TP of Rs 270. We recently met with the management of GICRE and are hopeful that the steps taken- increase in insurance rates for property, and expected lower crop insurance in FY21E, will reduce combined ratios.
General Insurance Co.. has an average target of 165.00 from 1 broker.
122.10
-1.05%
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!
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Number of FIIs/FPIs holding stock fell by 7 to 68 in Jun 2020 qtr.
122.10
-1.05%
HDFC Securities
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.
General Insurance Corporation of India is trading below all available SMAs
122.10
-1.05%
Chola Wealth Direct
Background: GIC Re offers reinsurance services in businesses such as fire (property), marine, motor, engineering, agriculture, aviation, health, liability, credit and financial liability, and life insurance. The company had a monopoly for 16 years until the insurance market was open to foreign reinsurance players. Its only Indian competitor is ITI Reinsurance Ltd (unlisted), which commenced its operations earlier this year. With over 44 years of experience in the insurance industry, its management has created a strong balance sheet with diversified revenue streams & investments generating effective yields. It also has a robust and comprehensive risk management framework. The...
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Number of FIIs/FPIs holding stock fell by 7 to 68 in Jun 2020 qtr.
122.10
-1.05%
HDFC Securities
Issue Open: October 11 - October 13 2017, Price Band: Rs. 855 - 912 (A discount of Rs 45 is offered to investors in retail Category and to the Eligible Employees) Issue Size: 124,700,000 Equity Shares (Fresh Issue of 17,200,000 eq sh. Offer for sale of 107,500,000 eq sh) Offer Size: Rs.10661 - 11372 crs Issue Open: October 11 - October 13 2017
General Insurance Co.. has an average target of 165.00 from 1 broker.
122.10
-1.05%
BP Wealth
Incorporated in 1972, General Insurance Corporation of India (GIC) is the largest reinsurance company in India in terms of gross premiums. They provides various general insurance products like property, energy, marine, engineering, miscellaneous, aviation-hull/spares-rotor wing, aviation-hull/ spares-fixed wing, liability, aviation treatyhull, spares and liability insurance products. They also offer cargo and offshore energy, motor, life, agriculture, space, health, credit and financial insurance. They offer reinsurance solutions for the Afro-Asian region and reinsurance programs in South East Asia, the Middle East and Africa. They develop their overseas business through their home office in Mumbai, branch offices in London, Dubai and Kuala Lumpur, a representative office in Moscow, a subsidiary in the United Kingdom that is a member of Lloyd's of London and a subsidiary in South Africa. Objectives of issue: The issue consists of an offer for sale of 107.5 million shares and a fresh...
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Number of FIIs/FPIs holding stock fell by 7 to 68 in Jun 2020 qtr.
122.10
-1.05%
Choice India
In terms of gross premiums accepted in FY17, General Insurance Corporation of India (GIC) is the largest reinsurance company in India, and it accounted for approximately 60% of the premiums ceded by Indian insurers to reinsurers. The company is also an...
General Insurance Co.. has an average target of 165.00 from 1 broker.
122.10
-1.05%
Angel Broking
General Insurance Corporation of India (GIC Re) is the largest reinsurer company in terms of gross premium (GP) accepted, having a market share of 60% in India. GIC Re provides reinsurance across key business lines including fire (property), marine, motor, engineering, agriculture, aviation, health, liability & credit, etc. Outlook &a..
General Insurance Co.. has an average target of 165.00 from 1 broker.