Insurance firms continue to disappoint: GIC Re ends 1.5% lower on debut

Poor performance was due to a dilemma regarding the valuation of these companies, market participants say

General Insurance Corporation (GIC Re) made a lacklustre stock market debut on Wednesday, as its shares declined as much as 14.5 per cent. The country’s biggest reinsurer managed to recoup most of the losses but the stock still ended the day 1.5 per cent lower at Rs 898, over the issue price of Rs 912.
 
The tepid debut is not a surprise. The state-owned company’s Rs 11,300-crore initial public offering (IPO) had only seen 1.37 times subscription and more than half had come from Life Insurance Corporation.
 
GIC Re joins a list of insurers that disappointed with their