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 & Valuation: At the upper end of the IPO price band it is offered at 25x its FY2017 EPS and 4x its FY2017 book value (Pre-IPO). The agriculture GP has grown aggressively over the last 3 years largely due to the initiatives taken by the Government and it contributed 29% of GP in FY2017 (4% in FY2014). However, the financials of the company may get affected adversely if India witnesses bad monsoon or successive poor monsoon seasons, drought, flooding or other catastrophic events impacting the Indian agriculture industry. Nonetheless, positives such as leadership position, well managed investment book, robust
balance sheet and reasonable valuations provide comfort, hence, we recommend SUBSCRIBE on this Issue.
For all IPO stories, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
