Strong prospects make GIC Re IPO attractive

Robust growth in the non-life segment, diversified book and improving operational efficiencies are positives

Growth prospects for the country’s largest reinsurer, General Insurance Corporation of India (GIC Re), which has 60 per cent of the Rs 39,000-crore reinsurance market (non-life plus life), appear robust. The company takes on risks from general insurance companies for a premium. It is expected to benefit from the strong growth in India’s non-life insurance segment, which accounts for 95 per cent of the reinsurance market.
 
Non-life premiums of the sector have grown at 17 per cent annually over the FY12-17 to Rs 1.28 lakh crore. The is projected to more than double to Rs 3 lakh crore by