Mumbai, February 5, 2025 – General Insurance Corporation of India (GIC Re) (BSE: 540755, NSE: GICRE) has reported robust financial performance for Q3 FY 2025, showcasing sustained growth, improved profitability, and strategic market expansion.
Key Financial Highlights (Standalone Basis)
| Metric | 9M FY 2025 | FY 2024 | FY 2023 | YoY Change |
|---|---|---|---|---|
| Gross Premium (₹ Cr) | 30,787 | 37,182 | 36,592 | +1.6% |
| Net Premium (₹ Cr) | 28,423 | 33,956 | 33,644 | +0.9% |
| Profit After Tax (₹ Cr) | 4,518 | 6,497 | 6,313 | +2.9% |
| Solvency Ratio (%) | 352% | 325% | 261% | Improved |
| Combined Ratio (%) | 110.5% | 111.8% | 109.3% | Slight Deterioration |
| Return on Equity (%) | 11.1% | 17.3% | 20.8% | Declined |
Segment-Wise Performance
- Domestic vs. International Business Mix:
- Domestic business accounted for 77% of the total gross premium, up from 69% in FY 2024.
- International business share declined to 23%, reflecting a focus on the Indian market.
- Product Mix:
- Agriculture (23%) and Fire (32%) remain the dominant segments, followed by Health (10%), Motor (15%), and Life (4%).
- Investment Portfolio:
- Total investments reached ₹1,48,271 Cr, with 73.3% in fixed income securities and 17.1% in equities.
- The company emphasized investment in high-rated sovereign and AAA bonds to minimize credit risk.
Strategic Initiatives and Market Positioning
- Expanding International Reach:
- GIC Re holds the 10th rank globally among reinsurers and continues to expand in 137 countries.
- Focus areas include Surety bonds, Cyber risk covers, and Parametric insurance.
- Strengthening Domestic Market Leadership:
- GIC Re maintains a ~51% market share in the Indian reinsurance sector.
- Increased cessions due to solvency pressures on direct insurers are expected to drive growth.
- Digital & ESG Initiatives:
- HR digital transformation and Ind AS implementation in progress.
- Strong focus on green investments, with exposure to green bonds and cloud migration.
- Stock Market Performance:
- Stock price surged 44% YoY, outperforming the Nifty 50 (+9%).
- Current Market Price: ₹444 (as of December 2024), with a 52-week high of ₹503.
Management Commentary
"Our strong performance this quarter reflects GIC Re’s disciplined underwriting, diversified portfolio, and effective risk management," said the company’s management. "We are committed to strengthening our leadership in India while leveraging our international presence to drive long-term sustainable growth."Outlook
- The reinsurance market remains favorable, with a projected 11% CAGR globally.
- GIC Re’s focus on risk-based pricing, underwriting profitability, and expansion into emerging markets positions it well for continued growth.
- Strengthening catastrophe reserves and improving incurred claims ratio remain priorities for long-term resilience.