GIC Re board, which met on Monday to finalise its results, has declared a record dividend of Rs 10 per share(or 200 per cent) with a face value of Rs 5
Mumbai: With higher underwriting losses and combined ratio , state owned GIC Re’s net profit has fallen by 17 per cent year-on- year to Rs 2,183 crore in the fourth quarter ended March 2025.
GIC Re board, which met on Monday to finalise its results, has declared a record dividend of Rs10 per share(or 200 per cent) with a face value of Rs 5 for FY 25.
However, led by Health portfolio, the 10th largest global reinsurer has seen its total premium rising by 20 per cent y-o-y to Rs 10,367 crore in the reporting quarter.
The listed reinsurer, which mainly competes with a dozen of foreign reinsurance branches(FRBs) in the domestic market, has increased its investment income, excluding the expenses, by almost 30 per cent y-o-y to Rs3,903 core in Q4FY 25.
The reinsurer has recorded underwriting losses of Rs 392 crore in Q4FY25 as compared to an underwriting profit of Rs 570 crore in the year-ago period.
With higher claims payments, GIC Re’s combined ratio in Q4FY 25 is at 103.56 per cent as against 89.26 per cent in the corresponding quarter of FY 24.
The company’s incurred claims have risen by 43 per cent y-o-y to Rs 7,134 crore in Q4FY25.
The reinsurer has augmented its CAT reserve by transferring Rs 598 crore in the last quarter of FY 25.
The company has managed to reduce its expense management ratio significantly to Rs 102.92 per cent in Q4FY 25 from 116.09 per cent in Q4FY24.
Total income of the reinsurer rose to Rs 11,364 crore in the March quarter compared to Rs 9,222 crore in the same quarter a year ago while its total expenses went up to Rs 9,106 crore in the reporting quarter as compared to Rs 6,638 crore in the corresponding quarter in Q4FY24.
Solvency Ratio of the reinsurer is at 3.70 as on Mar 31, 2025 as compared to 3.25 as on Mar 31, 2024.
Its total assets are at Rs 1,87,615.74 crore, up 5 per cent, in FY 25 as compared to Rs 1,78,285.82 crore in Fy 24.
For FY 25
The company had a record net profit in FY 25 was at Rs 6,701.36 crore as compared to Rs 6,497.30 crore in FY 24.
Gross premium income, with 75 per cent generated from the Indian market, of the company was Rs 41,153.95 crore , up almost 11 per cent, in in FY 25 as compared to Rs 37,181.76 crore in FY 24.
Except Fire, Health, Marine(Hull) and Life, the reinsurer has reduced its capacity for the rest of the portfolios. Its Health portfolio has zoomed by 66 per cent to Rs 9,527 crore in FY 25.
Its incurred claims ratio reduced to 88.44 per cent in FY 25 from 92.27 per cent in FY 24.
The reinsurer has reduced its underwriting losses by 16.35 per cent to Rs 3,351.61 crore in FY25 as compared to Rs 4,006.56 crore in FY24.
GIC Re’s gross investment income was at Rs12,702.60 crore in FY 25 as compared to Rs 11,620.40 crore in FY 24.
Its net worth (without fair value change account) recorded at Rs 43,106.52 crore in FY 25 as against Rs 37,581.78 crore in FY 24.
Combined Ratio of the reinsurer fell by 3.01per cent to 108.81 per cent in FY 25 as compared to 111.82 per cent in FY 24