N Ramaswamy, CMD, GIC Re
Combined Ratio improves by 2.66% to 106.94% ,underwriting losses fall 30 per cent to Rs 907.76, gross investment income increased by 18.37% to Rs 3,228.51
“In a bid to fortify our balancesheet further, we have started the practice of providing for Catastrophic Reserve on a quarterly basis and not annually as done previously. If this were not done, PBT and PAT figures would be higher by Rs 143.47 crores,’’ said N Ramaswamy, CMD, GIC Re
Mumbai: With higher investment income and lower under writing losses, state owned GIC Re has seen its net profit rising by a record 70 per cent to Rs 1,752.23 crore in in Q1 FY 26.
“In a bid to fortify our balancesheet further, we have started the practice of providing for Catastrophic Reserve on a quarterly basis and not annually as done previously. If this were not done, PBT and PAT figures would be higher by 143.47 crores,’’ said N Ramaswamy, CMD, GIC Re.
The reinsurer’s gross premium income during the reporting quarter was Rs 12,388.01 crore as compared to 12,405.68 crore for the year-ago period.
IRDAI had changed the accounting of long term policies in October 2024 to 1/n, because of which premium figures of the current quarter is lower and not exactly comparable with the corresponding period of the previous fiscal, clarified Ramaswamy .
Also after getting positive ratings from AM Best, the reinsurer has increased its international exposure from 16% in Q1FY2025 to 19 per cent in Q1FY 26.
With an improvement in the combined ratio, the 10th largest global reinsurer has managed to bring down its underwriting losses by almost 30 per cent to Rs 907.76 crore for Q1 FY 26, as compared to 1,288.53 crore for Q1FY 25.
The third largest Asia reinsurer has improved its Combined Ratio by 2.66% to 106.94% for the Q1FY 26 as against 109.60% for Q1FY 25.
GIC Re’s gross investment income has increased by 18.37% to Rs 3,228.51 crore for the first quarter of the current fiscal as compared to Rs 2,727.43 crore for the Q1FY26.
The reinsurer’s Incurred Claims ratio is 90.42% in the reporting quarter, marginally up from 89.77% in Q1FY 26.
This is due to two large, extraordinary losses which were not present in the quarter of the previous year – Jindal Poly Films Fire loss where 100% loss figures are Rs. 2300 crores and the Air India aviation loss, said Ramaswamy
Solvency Ratio of the company has remained robust at 3.85 as on June 30.2025 as compared to 3.36 as on June 30, 2024.
GIC Re’s total assets increased by 5.89% to Rs 1,97,539.62 crore as on June 30, 2025 as compared to 1,86,552.4 as June 2024
Net Worth of the company (without fair value change account) increased by 17.19% to
Rs 45,275.48 crore as on June 30, 2025 as against Rs 38,635.23 crore as on June 30, 2024.
Reversing its earlier trend, the insurer has decelerated its Health and Life portfolio while augmenting Motor, Crop business in Q1FY26.