Company Presentation
Reliance General Overview and Key Details:
1. Business Overview: Reliance General Insurance Company Ltd (RGICL), formerly a subsidiary of Reliance Capital Ltd, is now acquired by Indusind Int. Holding Limited. Licensed by IRDAI in 2000, RGICL is a leading private-sector general insurance company in India, offering motor insurance (cars, two-wheelers, commercial vehicles), health insurance (retail and group health plans), travel, fire, marine, and property insurance products, and customized insurance solutions for corporates and SMEs. It has a pan-India presence with 128+ branch offices and a strong digital sales footprint.
2. Investment Rationale: RGICL's investment appeal is rooted in its strong brand recall as one of India's oldest private sector general insurers. It has a diversified product portfolio, leading in motor and health insurance. The company has digital distribution strength, with over 50% of policies sourced through online and B2B2C channels. The "recovery play" lies in the potential value unlock following the resolution of Reliance Capital and the new ownership. The prospect of an IPO post-resolution of Reliance Capital is also a factor.
3. Key Risks: Key risks include intense market competition from established players like ICICI Lombard, HDFC Ergo, Tata AIG, and new-age digital insurers. The company is susceptible to IRDAI guidelines and capital requirement norms. Also, volatility in motor and health insurance claims could affect profitability.
4. IPO Timeline & Exit Options: Post-IBC exit, the company will likely rebrand and change ownership by FY26. The IPO timeline targets listing by FY26-FY27 after stabilization under new ownership. Pre-IPO secondary sale opportunities are currently limited but expected to improve post-resolution. Market anticipation points to potential valuation unlock post a clean corporate structure.
5. UnlistedZone View: Despite challenges at the parent group level, Reliance General Insurance is a fundamentally sound business with strong market share. A successful resolution of Reliance Capital's insolvency will pave the way for a re-rated valuation. Risk-tolerant investors with a 3-5 year horizon may find value. UnlistedZone rates the company as "Watchlist" and suitable for high-risk, high-reward investors, with a target valuation post-IPO of ₹15,000 - ₹18,000 Cr (subject to restructuring outcome).
Company Snapshot (as of 28.04.2025):
Financial Performance (in Cr.): The document provides the following financial data: | Particulars | FY22 | FY23 | FY24 (estimates) | |-------------|------|------|-----------------| | Revenue | 6354 | 7456 | 7880 | | EBITDA | 691 | 726 | 770 | | PAT | 242 | 271 | 280 | | EPS | 9.61 | 10.75| 10.57 |
Valuation Metrics (as of 28 Apr 2025):
Shareholding Pattern:
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