General Insurance Corporation (GIC) – a wholly owned company by the Government of India is planning to raise INR 11,372.64 crore (1,568.64 crores of Fresh Issue + 9,804 crores of OFS) via initial public offer (IPO)
General Insurance Corporation – Company Profile
General Insurance Corporation of India (GIC) is the largest reinsurance company in India in terms of gross premiums accepted in Fiscal 2017, and accounted for approximately 60% of the premiums ceded by Indian insurers to reinsurers during Fiscal 2017, according to CRISIL Research.
Working Area
- General Insurance Corporation (GIC) has diversified its business geographically to grow the underwriting business and profitability as well as to maintain a balanced portfolio of risks.
- General Insurance Corporation provides various General Insurance products like property, energy, marine, engineering, miscellaneous, aviation-hull/spares-rotor wing, aviation-hull/spares-fixed wing, liability, aviation treaty–hull, spares, and liability insurance products.
- GIC also offers cargo and offshore energy, motor, life, agriculture, space, health, credit and financial insurance.
- The Company also offers reinsurance solutions for the Afro-Asian region and reinsurance programs in South East Asia, the Middle East, and Africa.
Rating and Rankings
- A.M. Best Company rated ‘A’ – (EXCELLENT) for General Insurance Corporation of India
- Ranked 12th globally among the top 50 global reinsurance groups by A.M. BEST Company
- Leader in SAARC & AFRO ASIAN markets
- 4th largest AVIATION REINSURER
- GIC RE the largest AGRI REINSURER (across the Globe)
Company Promoters
The Promoter of the company is President of India, acting through the Ministry of Finance.
IPO Opening / Closing Dates & Listing
IPO Details – Issue Price, Minimum Bid and Other
Financial Performance
Revenues
The Company shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 5 years and jumped from INR 2511.12 crore in FY 2013 to INR 3644.18 crore for the period ended FY 2017.
Profits
Though the company has shown superb growth in revenue, the company has also registered impressive profits in these 5 years. Starting from INR 2288.64 crore of profits in FY2013, the company’s earnings improved to INR 2857.85 crore for the period ended FY 2017.
CONCLUSION –
Considering company’s valuation and financial parameters, FinBlab recommends SUBSCRIBE ratings on General Insurance Corporation of India IPO
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