GIC Re's size and monopoly not helping it attract investors' attention

Despite being the largest player in the domestic reinsurance industry, weak fundamentals cap the stock's appeal

State-run General Insurance Corporation of India (GIC) would probably serve as a good example of how enterprises fail to attract investors' attention despite its monopoly position in the industry. GIC is the only domestic general insurer operating in India’s reinsurance industry with a market share of over 90 per cent. Its competitors would be the likes of global giants such as Lloyd’s, Berkshire Hathaway and Reinsurance Group of America who aren’t listed in India and their asset base in the country is very small at present.

Yet, the GIC stock, despite gaining about 9 per cent in the past year,