GIC Re shares: Why Angel One sees 25% upside on this PSU reinsurer
Gross premium for GIC Re rose 6.9 per cent to Rs 44,007 crore, the incurred claims ratio improved 304 basis points (bps) to 85.40 per cent and the combined ratio fell to 106.02 per cent from 108.81 per cent.
- Sep 1, 2026,
- Updated Sep 1, 2026 3:08 PM IST
Angel One on Tuesday initiated coverage on General Insurance Corporation of India Ltd (GIC Re) with a 'Buy' rating and a 12-month target price of Rs 441, implying 25 per cent potential upside. The domestic brokerage valued the state-run reinsurer at 7.8 times estimated FY28 earnings per share (EPS) of Rs 56.40 and 1.18 times estimated FY28 book value.
"We forecast gross premium growth near 7 per cent annually and a combined ratio improving to 103 per cent by FY28E as the crop book is pruned and the international portfolio sustains profitability, supported by a dominant domestic franchise, 4.21 times solvency and an attractive dividend yield," Angel One said.
The GIC Re stock was up 0.24 per cent at Rs 355.60 apiece on BSE.
The brokerage said FY26 marked a decisive underwriting turnaround. Gross premium for GIC Re rose 6.9 per cent to Rs 44,007 crore, the incurred claims ratio improved 304 basis points (bps) to 85.40 per cent and the combined ratio fell to 106.02 per cent from 108.81 per cent.
Angel One said underwriting losses for GIC Re narrowed 47.4 per cent to Rs 1,763 crore and standalone profit rose 25.2 per cent to Rs 8,392 crore. "Solvency strengthened to 4.21 times against a 1.50 times regulatory floor and Rs 739 crore was allocated to the catastrophe reserve. Management is prioritising profitability over growth, pruning foreign motor and aviation lines while expanding health and life cessions," Angel One said.
Angel One said it modelled the corporation on standalone metrics, which reflected underwriting performance directly. Consolidated Q1FY27 profit fell 31 per cent to Rs 1,744 crore, but that decline was driven by a sharp drop in the share of profit from associate companies rather than by the reinsurance business.
It said India's insurable population is projected to reach 100 crore by 2035 and middle-class households to nearly double by 2030. Globally, hard market conditions persist, supporting risk-adjusted pricing across property catastrophe and specialty lines, Angel One said.
Angel One on Tuesday initiated coverage on General Insurance Corporation of India Ltd (GIC Re) with a 'Buy' rating and a 12-month target price of Rs 441, implying 25 per cent potential upside. The domestic brokerage valued the state-run reinsurer at 7.8 times estimated FY28 earnings per share (EPS) of Rs 56.40 and 1.18 times estimated FY28 book value.
"We forecast gross premium growth near 7 per cent annually and a combined ratio improving to 103 per cent by FY28E as the crop book is pruned and the international portfolio sustains profitability, supported by a dominant domestic franchise, 4.21 times solvency and an attractive dividend yield," Angel One said.
The GIC Re stock was up 0.24 per cent at Rs 355.60 apiece on BSE.
The brokerage said FY26 marked a decisive underwriting turnaround. Gross premium for GIC Re rose 6.9 per cent to Rs 44,007 crore, the incurred claims ratio improved 304 basis points (bps) to 85.40 per cent and the combined ratio fell to 106.02 per cent from 108.81 per cent.
Angel One said underwriting losses for GIC Re narrowed 47.4 per cent to Rs 1,763 crore and standalone profit rose 25.2 per cent to Rs 8,392 crore. "Solvency strengthened to 4.21 times against a 1.50 times regulatory floor and Rs 739 crore was allocated to the catastrophe reserve. Management is prioritising profitability over growth, pruning foreign motor and aviation lines while expanding health and life cessions," Angel One said.
Angel One said it modelled the corporation on standalone metrics, which reflected underwriting performance directly. Consolidated Q1FY27 profit fell 31 per cent to Rs 1,744 crore, but that decline was driven by a sharp drop in the share of profit from associate companies rather than by the reinsurance business.
It said India's insurable population is projected to reach 100 crore by 2035 and middle-class households to nearly double by 2030. Globally, hard market conditions persist, supporting risk-adjusted pricing across property catastrophe and specialty lines, Angel One said.