Value Vault

Company	General Insurance Corporation of India (GIC Re)
Ticker	NSE: GICRE \| BSE: 540755 \| ISIN: INE481Y01014
Current Price	375 (as of 09 October 2025)
Report Date	10 October 2025
Sector	Reinsurance / Financials

Investment Thesis

GIC Re is the dominant reinsurer in India, benefiting from a near-monopoly with PSU insurers and increasing participation from private companies. The company’s business model offers stable, recurring cash flows backed by government mandates and robust risk management. India’s insurance penetration remains below 4%, compared to over 7% globally, providing GIC Re with a multi-decade growth runway driven by rising premiums and regulatory support.

The stock trades at attractive valuation levels relative to global peers despite superior growth prospects and consistent long-term performance. This combination of structural advantage and valuation discount makes GIC Re a compelling value idea in India’s financial ecosystem.

Business Overview

Market Position: Reinsures nearly all PSU insurers and growing share of private insurers, capturing a dominant portion of India’s reinsurance market.
Growth Drivers: Government-backed crop insurance schemes (PMFBY) and mandatory policies have driven premium growth since 2016.
International Expansion: Presence in Russia, Brazil and Lloyd’s syndicate diversifies risks and expands global footprint.
Insurance Penetration: Low domestic penetration underpins sustained premium growth for decades.

Financial Highlights

FY25 Gross Premiums: 41,154 crore (+10.7% YoY).
Q1 FY26 Net Profit: 1,752 crore (+69% YoY).
Solvency Ratio: 3.7× – reflects conservative capital management.
Steady revenue and profit growth through disciplined underwriting and strong investment income.

Valuation Comparison

Metric	GIC Re (Oct 2025)	Munich Re	Swiss Re	Hannover Re	Commentary
P/E Ratio	8.4–9.0×	12×	11×	13×	Trades at a meaningful discount
P/B Ratio	1.09–1.38×	1.8×	1.6×	2.0×	Below peer valuations
Dividend Yield	2.6%	~3%	3.2%	2.8%	Competitive yield
Market Cap	66,149 crore	2+ lakh crore	1.4+ lakh crore	1.2+ lakh crore	Significantly smaller scale
Intrinsic Value	1,059 / share	—	—	—	175%+ upside to intrinsic value

Key Investment Positives

Secured government-backed premium flows with rising private participation.
Expanding domestic market with decades-long growth runway due to low insurance penetration.
Strong solvency and risk management delivering consistent profitability.
International diversification reducing geographic risk.
Attractive valuation metrics relative to global peers.

Risk

Large catastrophe events could impact underwriting results.
Regulatory changes may affect the premium base.
Rising competition from foreign reinsurers.
Currency and geopolitical risks from international operations.

Conclusion & View

GIC Re combines a dominant, government-supported franchise with strong financial health and an attractive long-term growth outlook in an underpenetrated market. Its valuation discount offers a rare value opportunity relative to global peers.

Recommendation: Buy