Mumbai: Analysts have advised retail investors to avoid government's offer for sale in General Insurance Corp of India (GIC Re), citing concerns over profitability and sector headwinds.The Centre wants to sell up to 5% stake in GIC, including a 2% base offer with a greenshoe option to sell an additional 3% in case of oversubscription.The non-retail portion was subscribed 3.72 times on Tuesday, prompting the government to exercise the greenshoe option to sell an additional 3% stake. The retail portion is set to open for bids Wednesday."We advise retail investors to avoid subscribing to the issue as, fundamentally, the company is still struggling to deliver operational profit, with a FY26 combined ratio of 106%, and is relying heavily on its investment portfolio (around ₹1.5 lakh crore as of FY26) for profits," said Sunny Agrawal, head - fundamental research, SBI Securities.Agenciescite profitability concerns, sector headwindsAgrawal added that while the combined ratio has improved from 109% in FY23 to 106% in FY26, with likely further improvement in FY27E, the reinsurance industry continues to face pricing pressure and rising competition. On the valuation front, the business is available at FY26E Price to book value of 1.2x (excluding fair value changes) with RoE of 16.4%.The floor price for the share sale is at ₹352 per share, a discount of about 8.63% to Monday's closing price of ₹385.25. The stock closed 8% down at ₹356.40.