General Insurance Corporation of India Share Price Today

The market cap of General Insurance Corporation of India, as of March 2018, is more than Rs.61,000 crore.

Company's Wealth and Recent Performance

1. Looking at the company's performance over a 9 month period in the fiscal year 2018, the gross premium amounts to Rs.33,274 crore. Comparing the same with 9M FY2017, there has been an increase of more than 36.8% in gross premium. By the end of the December quarter, Return on Equity had also increased to 15.9%.

1. Similarly, the company also reported a significant increase in profit after tax over 9M FY2017. The PAT increased to Rs.2,481.99 crore from a mere Rs.554.82 crore in the same period - a growth of Rs.347.4%. This massive growth was driven by the decrease in combined ratio, which translates into a reduction incurred losses and expenses.
2. Considering its portfolio, a little over 75% comprises domestic market, whereas the remaining is constituted of foreign markets.

General Insurance Corporation of India Q1 FY19 Results

1. The insurance company reported a jump in its standalone net profit of 97.74% year-on-year which stood at Rs.771.42 crore.
2. The standalone net interest income was up by 9.29% year-on-year and 120.43% quarter-on-quarter which stood at Rs.18,791.45 crore.
3. While its net earned premium inclined by 14.1% year-on-year which stood at Rs.14,584.27 crore.
4. The company said that it posted an underwriting loss of Rs.304.11 crore as compared to Rs.635.66 crore reported during the corresponding quarter last fiscal.
5. The net commission dropped 27% year-on-year to stand at Rs.1,937.51 crore in the said quarter, while its incurred claims grew by 20.3% year-on-year to stand at Rs.12,884.21 crore.
6. As for its net profit after tax, it was up by 97.7% year-on-year to stand at Rs.771.42 crore for the said quarter.
7. The net income from investments for policyholders remained flat with a slight increase of 0.9% year-on-year to stand at Rs.819.62 crore during the said quarter.
8. The company's net worth rose by 3.86% year-on-year to stand at Rs.52,254.06 crore as of 30 June 2018.

General Insurance Corporation of India Annual Report FY 2017-18

1. The insurance provider posted a rise in its net profit at Rs.3,233.59 crore for the said financial period as against Rs.3,127.67 crore, up by 3.4%.
2. Gross premium income rose by 24.5% with Rs.41,799.37 crore premium for the FY 2017-18 as compared to Rs.33,585.44 crore last fiscal.
3. Its investment income also inclined by 17.6% to stand at Rs.5,392.44 crore as against Rs.4,584.35 crore last financial year; however, the company witnessed high underwriting losses in the fire and agriculture segments.
4. The company declared a one-for-one bonus but subject to shareholders approval.

General Insurance Corporation of India Q4 FY18 Results

1. The insurance firm posted a decline in its standalone net profit of 70.79% year-on-year to Rs.751.60 crore.
2. Its standalone net interest income dropped by 27.62% year-on-year and 17.58% quarter-on-quarter.
3. The gross written premium for the said quarter declined by 8% year-on-year to stand at Rs.8,525.02 crore and its net earned premium too dropped significantly by 27.6% year-on-year to stand at Rs.7,053.34 crore during the said quarter.
4. The company posted an underwriting loss of Rs.1,219.06 crore as compared to Rs.1,418.78 crore during the corresponding quarter last fiscal.
5. The net Profit After Tax (PAT) stood at Rs.751.60 crore as compared to Rs.2,572.83 crore during the same period last financial year.
6. The board recommended a dividend of Rs.13.5 per share for the fiscal. Also, it announced a bonus issue of 1:1.

General Insurance Corporation of India Stock Trends in 2018

1. Even though GIC Re has been around the block for more than 35 years, the company did not go public up until recently. It came up with its first initial public offering in October 2017 thus becoming the first Indian reinsurer to do so. The price band of the IPO was Rs.855-Rs.912 and it was subscribed 91.16% on the final day of the bidding process.
2. Following the IPO, the stocks of General Insurance Corporation of India were listed on the secondary markets in late October 2017, where they commenced trading at close to Rs.870 on the two exchanges. However, over the course of next couple of weeks, the share price tumbled. It entered the Rs.700 territory in November and at the end of December, the closing price on NSE was Rs.753.70.
3. The opening price of GIC Re stock on January 1, 2018 was Rs.753 on NSE and BSE. By mid-January, the stocks had made some gains, although they were nowhere close to being traded at around Rs.800, as was the case in late October 2017. The closing price at the end of the month was Rs.756 on NSE.
4. The month of February witnessed turbulence in the international markets, including those in India. A majority of stocks suffered in that period, including that of GIC Re. The opening price on February 1, 2018 was Rs.765.85 on NSE and by the end of the month, the stocks had lost more than Rs.40 in value. The closing price on February 28 was Rs.721.15 on NSE and Rs.722.95 on BSE.
5. The scrip rose by more than 5 points on the 1st of March to end the day's trading at Rs.366.35; however, by the 12th of the month, the stock dropped significantly to stand at Rs.350.20. By the end of the month, the scrip gained momentum and closed at Rs.367.05 on the last day of the month.
6. On the 2nd of April, the stock ended the day at Rs.369.80 even rising further to gain more than 5 points the next day only to decline over the course of the month to close at Rs.354.58.
7. When the market opened for trading on the 2nd of May, the scrip lost about 3 points to end the day at Rs.351.95. While the stock price fluctuated over the course of the month, it gained significantly to touch Rs.375 on the 29th before dropping to end the month at Rs.362.28.
8. The scrip declined by about 4 points on the 1st of June to be valued at Rs.358.20 and dropped even further to touch Rs.351.23 on the 6th before gaining by the end of the month to close at Rs.366.43.
9. On the 2nd of July, the stock rose to touch Rs.367.53 gaining further 15 points by the 6th to stand at Rs.382.35; however, the scrip dropped significantly to touch an all-time low of Rs.329.90 but by the end of the month, it gained about 30 points to end at Rs.356.55 from the previous low.
10. The scrip rose by 9 points to stand at Rs.363.80 on the 1st of August before losing more than 30 points by the end of the month to close at Rs.334.

Should you invest in General Insurance Corporation of India?

1. General Insurance Corporation of India is a state-owned reinsurer that has been enjoying a near-monopoly in the Indian reinsurance market for more than 40 years. It has generated revenues over the years and has reported good return ratios. Its combined ratio for 9M FY18 is 101.09%, which is definitely acceptable. Furthermore, its gross premium (revenue) and profit after tax for the same period have increased considerably over the corresponding period last year. Needless to mention, the company is financially sound and fundamentally strong.
2. The company recently launched its first IPO with the purpose of expanding and maintaining solvency levels. It is expected that the insurance sector in India will touch $300-400 billion by 2020, while on an international scale, the primary insurance sector is expected to grow by 4.5% in 2018. In addition to this, GIC Re provides reinsurance across many key segments like agriculture, fire, health, credit, et cetera.
3. Considering that General Insurance Corporation of India is the 12th largest reinsurance group in the world and the largest reinsurance company in India, it is definitely at the pole position to lead the way in the reinsurance sector. From a long-term perspective, investing in GIC Re stocks may appear to be a feasible idea. However, it is advisable to perform your own research before investing.

Company Information

The General Insurance Corporation of India, popularly known as GIC, is a state-owned reinsurance company. Headquartered in Mumbai, the company was set up in 1972 and monopolised the reinsurance sector for over 4 decades. The company was formed as a result of the nationalisation of insurance companies in 1972.

GIC became the sole reinsurer in India after changes to the Act in 2002, and became known as GIC Re.

The company has diversified and now has an insurance presence in the Middle East, Africa, Europe, America as well as SAARC nations. Along with the expansion in its presence, the company has also set up offices in London, Dubai, Moscow among others.

History of the Company

The General Insurance Corporation of India was set up in 1972 after the nationalisation of 52 insurance companies by the Government of India. The company was incorporated on 22 November, 1972 under the Companies Act as a private company. After the transfer of shares from the nationalised insurance companies, GIC was restructured and split into 4 fully-owned subsidiaries, namely the New India Assurance Company, United India Insurance Company, National Insurance Company and Oriental Insurance Company.

With the enforcement of the Insurance Regulatory and Development Authority Act, 1999, the monopoly of the company and its four subsidiaries in the reinsurance sector was removed. A consequence of this was that GIC stopped being a holding company for the four subsidiaries in March 2003 and GIC became wholly owned by the Government of India.

Management

Mrs. Alice Vaidyan- Chairman and Managing Director

Mrs. Vaidyan has been associated with the insurance and reinsurance sector for over 3 decades and has held a number of positions in various capacities in the sector.

She holds the distinction of being the first female Chairperson and Managing Director of a public sector insurance company in the country. A Fellow of the Insurance Institute of India, she also holds a degree from Harvard Business School and is a Post Graduate in English Literature. In addition to her responsibilities at GIC, she also serves on the board of Life Insurance Corporation of India (LIC), GIC Housing Finance Limited, ECGC Limited among others. She has received a number of accolades over the course of her illustrious career.

GIC Listing in NSE, BSE and Indices

GIC is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). When trading on the bourses in GIC shares, the following codes are used:

BSE: 540755

NSE: GICRE

ISIN: INE481Y01014

Sector: Diversified

Location

The headquarters of the company is in Mumbai, Maharashtra and the address is listed below:

"Suraksha",

170, Jamshedji Tata Road,

Churchgate,

Mumbai - 400 020

India.

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