JPMorgan upgrades General Insurance Corp of India stock rating on improved underwriting outlook

Published 22/09/2025, 09:08
JPMorgan upgrades General Insurance Corp of India stock rating on improved underwriting outlook

Investing.com - JPMorgan has upgraded General Insurance Corp of India (GICRE:IN) from Underweight to Overweight and significantly raised its price target to INR480.00 from INR197.00.

The upgrade reflects JPMorgan’s assessment of a "significantly improved underwriting outlook" for GIC Re over the next two years. The firm noted that GIC has underperformed year-to-date, declining 18% compared to the Nifty Index’s 8% gain.

JPMorgan attributes the underperformance to a relatively slow turnaround in underwriting, with the combined ratio improving from 111.8% in FY24 to 108.8% in FY25 and 106.9% in the first quarter of FY26.

The investment bank anticipates "a strong tailwind from overseas underwriting improvement" over the next one to two years, which it expects to serve as a catalyst in upcoming quarterly results. JPMorgan forecasts the overall combined ratio will improve to 103.6% by FY28.

Based on the improving underwriting performance outlook, JPMorgan has adjusted its earnings forecasts, raising its earnings base by 44% over the next three years for the Indian reinsurance company.

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