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.

GIC of India , the country's largest reinsurer, has reported a robust financial performance for the first quarter. The company's net profit jumped 69% to ₹1,752 crore, compared to ₹1,036 crore in the same period last year.

Key Financial Highlights

Improved Underwriting Performance

GIC Re's underwriting loss narrowed to ₹908.00 crore in Q1, a substantial improvement from the ₹1,289.00 crore loss reported in the same quarter last year. This reduction in underwriting loss indicates the company's efforts to enhance its core insurance operations.

Strong Investment Returns

The company's investment portfolio continued to deliver strong results, with investment income rising by 20% year-over-year. This robust performance in investments has significantly contributed to the overall profitability of GIC Re.

Solvency and Net Worth

GIC Re's solvency ratio stood at a healthy 3.85 as of the end of the quarter, compared to 3.36 in the previous year, reflecting the company's strong financial position. The net worth (excluding fair value change account) increased by 17.19% to ₹45,275.00 crore.

Segment Performance

• Fire Insurance: Reported an operating profit of ₹663.00 crore
• Marine Insurance: Generated an operating profit of ₹196.00 crore
• Miscellaneous Insurance: Achieved an operating profit of ₹575.00 crore

Management Commentary

The company's management attributed the strong performance to improved underwriting practices, strategic investment decisions, and effective risk management. They also highlighted the creation of a Catastrophe Reserve, which is expected to help manage future volatility in claims and introduce stability in financial results.

Future Outlook

With its strong financial performance, improved solvency ratio, and strategic initiatives like the Catastrophe Reserve, GIC Re appears well-positioned to capitalize on growth opportunities in the reinsurance sector. The company's focus on enhancing underwriting profitability while maintaining a robust investment portfolio is likely to drive sustainable growth in the coming quarters.