Deutsche Bank initiates coverage with hold rating on General Insurance Corporation

Global brokerage house Deutsche Bank has initiated coverage with hold rating on General Insurance Corporation of India and set a target price at Rs 830 per share, saying it is a leading Indian reinsurer but the risk-reward is balanced.”Positives are dominant 60 percent market share, improving financials and combined ratio at 100 percent while negatives are B2B model, tightening competition and investment income driving profits,” the research house said. It feels the competitive landscape is getting incrementally tighter as insurance regulator IRDAI allowed foreign reinsurers to open branches in India.Key crop business for the company can be volatile but is not concerned, according to Deutsche.