General Insurance Corporation of India
NSE: GICREGeneral Insurance Corporation of India: A 30-second snapshot
GIC Re (GICRE) is India's sole public-sector reinsurer, trading at ₹387.45 with a trailing PE of 7.1x and forward PE of 6.7x — among the lowest multiples in its NSE-assigned peer group. Revenue has grown at 11.6% over five years but earnings growth has lagged at 2.9%, keeping ROE at 10.14% and the quality score at 50/100. Price is above both the 50-DMA (₹382.64) and 200-DMA (₹377.82), though the stock has declined 4.32% over the past 12 months and sits 10.89% below its 52-week high.
P/E
7.1
Forward P/E
6.7
ROE
+10.1%
Debt / Equity
—
Profit Margin
+18.3%
Div. Yield
+2.6%
5Y ROE > 15%
1/5
5Y FCF > 0
3/5
Quality
56/100
News
8 headlines · 2 positive · 0 negative
IRDAI holds obligatory reinsurance cession at 4% for FY27 - Insurance Business
Insurance Business
Irdai keeps FY27 cession rate at 4%, backs GIC Re role - The Economic Times
The Economic Times
General Insurance Corporation Of India: Appointment Of Rajesh Laheri As CFO - TradingView
TradingView
GIC Re Extends Additional CMD Charge to Hitesh Joshi for Three Months - scanx.trade
scanx.trade
General Insurance Corporation of India Extends Additional Charge of Chairman-Cum-Managing Director to Hitesh Ramesh Chandra Joshi, Effective April 1, 2026 - marketscreener.com
marketscreener.com
Recent context
- ·IRDAI confirmed the FY27 obligatory cession rate at 4% in April 2026, preserving GIC Re's statutory role as the primary domestic reinsurance absorber — a policy outcome that directly underpins a portion of GIC Re's premium volume regardless of market competition.
- ·GIC Re's CMD charge was extended for three months to Hitesh Joshi effective April 1, 2026, and Rajesh Laheri was appointed as CFO in May 2026 — two senior-level transitions within a short period that leave the company without a permanently appointed CMD.
- ·RSI at 47.1 (neutral) with price above both moving averages; nearest resistance cluster is ₹394–₹400 and nearest support cluster is ₹376–₹358, giving a roughly symmetrical near-term range of approximately 1.7% to resistance and 2.7% to the first support.
Strengths
- +Lowest PE among classified peers at 7.1x trailing (next lowest: Axis Bank at 14.7x), with forward PE compressing further to 6.7x — the stock is priced at a meaningful discount to its peer group on an earnings multiple basis.
- +Regulatory moat intact for FY27: IRDAI held obligatory reinsurance cession at 4%, with GIC Re confirmed as the sole domestic obligatory cession counterparty, preserving its mandated premium flow from all Indian general insurers.
- +Dividend yield of 2.58% provides an income component alongside capital return; the stock trades above both its 50-DMA and 200-DMA, indicating near-term price support relative to medium-term trend.
- +5-year revenue CAGR of 11.6% demonstrates that the top line has grown at a pace broadly consistent with the Indian general insurance industry expansion over the period.
Weaknesses
- −Earnings growth of 2.9% CAGR over 5 years has materially lagged revenue growth of 11.6%, indicating that underwriting margins or investment returns have not kept pace with premium income — a pattern that limits book value compounding at a ROE of 10.14%.
- −ROE of 10.14% with only 1 of measured years above 15% and a persistence consistency score of 32/100 reflects a business that has not consistently cleared a double-digit return hurdle on equity over the observable window.
- −Leadership continuity is in an interim state: CMD charge extended on a three-month basis (from April 1, 2026) and a new CFO appointed in May 2026, representing concurrent senior leadership transitions at the top of the organisation.
- −Quality score of 50/100 places GICRE at the median of a peer group that includes structurally different businesses; FCF was positive in only 3 of available measured years, limiting the signal on cash generation consistency.
Open questions
- ?Does the persistent gap between 11.6% revenue CAGR and 2.9% earnings CAGR reflect a structural issue in GIC Re's underwriting discipline, claims experience, or investment portfolio — and has it been narrowing or widening in recent quarters?
- ?How dependent is GIC Re's earnings base on the 4% obligatory cession mandate, and what would be the earnings impact if IRDAI were to revise this rate downward in a future policy cycle?
- ?With two senior leadership roles in transition simultaneously (CMD on interim charge, new CFO just appointed), how does management continuity affect the company's strategic initiatives and regulatory relationships in the near term?
- ?GIC Re trades at 7.1x trailing PE versus peers in the 14–30x range — to what extent does this discount reflect the structural differences between a public-sector reinsurer and the private-sector banks and insurance companies it is grouped with, versus business-specific concerns around earnings quality?
Peer comparison: Banking
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| GICRE | General Insurance Corporation of IndiaYou're viewing | 7.1 | +10.1% | 50 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.8 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.4 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹387.45
SMA 50
₹382.64
SMA 200
₹377.82
RSI (14)
47.1 (neutral)
From 52w high
-10.9%
1Y return
-4.3%
3M return
-1.5%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- medium5-year revenue CAGR of 11.6% against 5-year earnings CAGR of only 2.9% signals sustained margin compression: costs or claims have grown materially faster than premiums over the period. Profit margin currently stands at 18.32%.
- mediumROE of 10.14% with only 1 of measured years above the 15% threshold and a persistence consistency score of 32/100. The stock has generated limited compounding of book value relative to its equity base.
- mediumLeadership continuity risk: CMD charge extended to Hitesh Joshi for an additional three months (effective April 1, 2026) and a new CFO (Rajesh Laheri) appointed in May 2026, meaning two of the most senior executive roles have turned over or are in interim status within a short window.
- lowGICRE is a public-sector reinsurance monopoly classified alongside private-sector banks and NBFCs (Axis Bank, HDFC Bank, Bajaj Finance, Bajaj Finserv, HDFC Life). The peer set is structurally dissimilar, making PE and ROE rankings (1st of 6 on PE at 7.1x, 6th of 6 on ROE at 10.14%) directionally informative but not directly comparable.
- lowFCF positive in only 3 of available years. With earnings growth at 2.9% over 5 years and FCF consistency score of 32/100, free cash generation has not been a reliable feature of the business.
Cross-section contradictions
- 5-year revenue grew at 11.6% CAGR but earnings grew at only 2.9% CAGR over the same period — yet the stock trades at a trailing PE of 7.1x versus the sector peer median of approximately 17–29x, compressing valuation well below even the lowest-multiple banking peer.
- IRDAI retained GIC Re as the sole obligatory cession recipient for FY27 (a structural regulatory protection), and news sentiment is net neutral-to-positive (2 positive, 6 neutral, 0 negative across 8 articles), yet the stock has declined 4.32% over 12 months and 1.47% over 3 months.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days