The Government of India has announced plans to sell up to a 5% stake in the state-owned General Insurance Corporation of India (GIC Re), a move aimed at increasing market participation, strengthening corporate governance, and promoting greater competition in the country's insurance sector.

The stake sale will be carried out through an Offer for Sale (OFS). Initially, 2% of the company's shares will be offered, with an option to sell an additional 3% if investor demand remains strong. The floor price has been set at ₹352 per share. If the full 5% stake is sold, the government could raise around ₹30.88 billion while still retaining majority ownership of the company.

GIC Re is India's only state-owned reinsurance company and plays a vital role in absorbing risks transferred by general insurance companies, helping them manage losses arising from major accidents, natural disasters, and large insurance claims. The company currently holds around 52% of India's domestic reinsurance market and provides reinsurance services in more than 137 countries.

The government's ownership in GIC Re currently stands at 82.4%, which will decline to around 77.4% after the proposed sale. The move is expected to increase the company's public shareholding, improve liquidity, attract domestic and foreign institutional investors, and move closer to meeting the Securities and Exchange Board of India's (SEBI) minimum public shareholding requirements.

Financially, GIC Re continues to maintain a strong position. In FY 2025/26, the company's gross premium income increased to ₹44,007 crore, while net profit rose to ₹8,392 crore. Its solvency ratio improved to 421%, highlighting the insurer's strong capital position and ability to meet large claim obligations.