GIC Re jumps as Q1 PAT soars 81% YoY

General Insurance Corporation of India rose 3.06% to Rs 389.50 after the reinsurer posted a strong improvement in quarterly earnings for the period ended 30 June 2025.

Consolidated net profit surged 80.67% year-on-year to Rs 2,530.59 crore, aided by higher investment income and a sharp reduction in underwriting losses. Profit before tax jumped 78.75% to Rs 2,663.67 crore, while net investment income grew 20.10% to Rs 3,349.37 crore.

The quarter also reflected a change in accounting practice, with GIC now creating a Catastrophe Reserve on a quarterly basis instead of annually. For the June quarter, the reserve stood at Rs 143.47 crore.

Underwriting losses narrowed significantly to Rs 526.89 crore from Rs 1,242.10 crore a year ago, helped by lower commission and management expenses. Net commission expenses fell 14.63% to Rs 1,879.52 crore, while management expenses dropped 21.90% to Rs 82.01 crore.

Earned premium rose 11.65% to Rs 11,273.88 crore, even as gross premium slipped marginally by 1.37% YoY to Rs 12,417.16 crore in Q1 FY26. The incurred claims ratio improved to 86.84% from 89.17% in the previous years quarter, reflecting better claims management.

Other income jumped 64.89%, while share of profit from associate companies increased 28.30%. However, premium deficiency expenses rose sharply to Rs 50.90 crore from Rs 11.23 crore.

The groups net worth (excluding fair value change account) stood at Rs 50,045.83 crore in Q1 FY26, up 18.69% from Rs 42,164.61 crore in Q1 FY25.

GIC Re is the largest reinsurer in Indias domestic reinsurance market, leading most treaty programmes and facultative placements. Its group includes subsidiaries GIC Re South Africa, GIC Re Corporate Member, London, and GIC Perestrakhovanie LLC, Moscow, along with associate companies GIC Re Bhutan, India International Insurance (Singapore), and Agriculture Insurance Company of India.

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