HDFC Securities:  GIC Reinsurance Continues To Surprise Negatively With Continually High Loss Ratios
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HDFC Securities: GIC Reinsurance Continues To Surprise Negatively With Continually High Loss Ratios

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Report

General Insurance Corporation of India Ltd. is India’s largest reinsurer, but it continues to make significant underwriting losses (Q2 FY21 combined operating ratio: 122.1%).

A calibrated approach to underwriting is expected to change this over FY21-23E.

We estimate an FY22/23E adjusted return on equity is at 8.7/10.9%, and value the company at 0.7 times September-22E accredited in business valuation less 10% discount for an additional 10.8% stake to be sold by Government of India.

Click on the attachment to read the full report:

HDFC Securities GIC Reinsurance Q2FY21 Result Update.pdf

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