GIC of India has announced a significant dividend payout for its shareholders, subject to approval at the upcoming Annual General Meeting (AGM). The Board of Directors has recommended a dividend of Rs. 10.00 per equity share for the financial year ending March 31, 2025.

Dividend Details

• Dividend Amount: Rs. 10.00 per equity share (nominal value Rs. 5.00 each)
• Financial Year: Ended March 31, 2025
• Record Date: September 5, 2025
• Payment Timeline: Within 30 days of AGM approval

Tax Implications for Shareholders

Following the Finance Act 2020 amendments, dividend income is now taxable in the hands of shareholders. GIC of India will be required to deduct tax at source (TDS) on the dividend payouts. The TDS rates vary based on the category of shareholders:

For Resident Shareholders:

• No TDS on dividends up to Rs. 10,000.00
• 10% TDS for dividends exceeding Rs. 10,000.00 (with valid PAN)
• 20% TDS if PAN is not provided or not linked with Aadhaar

For Non-Resident Shareholders:

• 20% TDS plus applicable surcharge and cess
• Possibility of lower TDS rates if eligible for tax treaty benefits (subject to submission of required documentation)

Guidelines for TDS Exemptions

GIC of India has issued detailed guidelines for various categories of shareholders to claim TDS exemptions:

• Insurance Companies: Submit appropriate documentation
• Mutual Funds: Provide necessary forms and declarations
• Other Exempt Entities: Submit relevant forms and declarations

All required documents for TDS exemption claims must be submitted before September 5, 2025.

Shareholder Action Required

1. Ensure PAN is linked with Aadhaar to avoid higher TDS rates
2. Non-resident shareholders seeking tax treaty benefits should submit required documentation
3. Exempt entities must provide necessary forms and declarations before the deadline

This dividend announcement demonstrates GIC of India's commitment to delivering value to its shareholders while adhering to the latest tax regulations. Shareholders are advised to review the detailed guidelines provided by the company and take necessary actions to optimize their dividend receipts.

GIC of India , the country's largest reinsurer, has reported a robust 70% year-on-year increase in profit after tax (PAT) to ₹1,752.22 crore for the first quarter of fiscal year 2026. The company's strong performance comes despite facing two significant losses during the quarter.

Financial Highlights

• Profit before tax (PBT) rose by 61.04% to ₹2,243.54 crore
• Gross premium income remained relatively flat at ₹12,388.01 crore
• Combined ratio improved to 106.94% from 109.6% in Q1 FY2025
• Gross investment income increased by 18.37% to ₹3,228.51 crore
• Solvency ratio strengthened to 3.85 from 3.36 in the previous year
• Net worth grew by 17.19% to ₹45,275.48 crore

Underwriting Performance

GIC Re's underwriting loss reduced by 30% to ₹907.76 crore, despite two major losses during the quarter. The company faced a fire loss at Jindal Poly Films, with GIC's share amounting to ₹925 crore, and an aviation loss involving Air India in Ahmedabad.

Investment Income

The company's investment strategy continues to yield positive results, with gross investment income rising to ₹3,228.51 crore. Of this, ₹1,850 crore came from interest and dividends, while ₹1,074 crore was attributed to profit on sale of investments.

Segment-wise Performance

International Business

GIC Re's international business showed significant improvement, with the combined ratio for foreign business expected to decrease from 126% in the previous year to around 116-118% for FY2026. This improvement is attributed to the company's credit rating upgrade in October 2024, which has allowed GIC Re to secure new business and regain previously lost accounts.

Domestic Market Outlook

In the domestic market, GIC Re expects growth of 6.5-7% for FY2026. The company is focusing on maintaining underwriting discipline and ensuring viability in the property insurance market. New business lines such as surety, cyber, and trade credit insurance are being explored to diversify the portfolio.

Management Commentary

Chairman and Managing Director Ramaswamy Narayanan stated, "Our performance this quarter reaffirms the resilience of our business model and our steadfast adherence to core reinsurance tenets: rigorous risk management, prudent diversification, and disciplined underwriting."

Future Outlook

GIC Re projects an overall growth of 9-10% for FY2026, with international business expected to grow by 17-20% and domestic business by 6.5-7%. The company aims to maintain its combined ratio at around 107-107.5% for the full year.

As the reinsurance landscape evolves, GIC Re remains focused on writing profitable business and maintaining a strong solvency position, particularly in anticipation of the implementation of Risk-Based Capital (RBC) norms in the Indian insurance market.