GICRe Rectifies Combined Ratio in Investor Presentation

GIC of India , the country's sole listed reinsurance company, has issued a correction to its investor presentation, addressing a typographical error in a key financial metric. The company revised its combined ratio figure from the erroneously stated 117.90% to the accurate 108.80% on a standalone basis.

Correction Details

The revision was made specifically to the 'GICRe - Key Financials on Standalone Basis' section of the presentation, located on page 27. GIC of India emphasized that this was the only change made to the document, with all other information remaining unaltered.

Regulatory Compliance

This correction was executed in compliance with Regulation 30 read with Para A of Schedule III and Regulations 46(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's prompt action in rectifying the error and informing stakeholders aligns with regulatory standards for transparency and accuracy in financial reporting.

Importance of the Combined Ratio

The combined ratio is a crucial metric in the insurance industry:

Aspect	Description
Definition	Sum of the loss ratio and expense ratio
Significance	Indicates the profitability of an insurer's underwriting activities
Interpretation	A ratio below 100% suggests underwriting profit, while above 100% indicates a loss

The substantial difference between the initially reported 117.90% and the corrected 108.80% is significant, as it shifts the perception of GIC of India's underwriting performance from a loss-making to a more favorable position.

Investor Communication

GIC of India has taken steps to ensure widespread dissemination of the corrected information:

Issued a formal letter to both BSE Limited and The National Stock Exchange of India Ltd.
Made the revised presentation available on the corporation's website.
Requested the stock exchanges to take the corrected information on record.

This proactive approach in communication underscores GIC of India's commitment to maintaining transparency with its investors and adhering to regulatory standards.

Conclusion

While typographical errors can occur in financial documents, the prompt correction by GIC of India demonstrates the company's dedication to accurate financial reporting. Investors and analysts following GIC of India should take note of this revision, as it presents a more positive view of the company's underwriting performance for the period in question.

Stakeholders are advised to consider this metric alongside other financial indicators and market conditions when evaluating GIC of India's overall performance and investment potential.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.04%	-2.24%	+1.09%	-4.97%	-5.64%	+172.61%

GIC of India , the country's largest reinsurer, has reported a strong financial performance for the second quarter of fiscal year 2026, marked by significant improvements in key metrics and profitability.

Financial Highlights

GIC Re's Q2 FY26 results showcase substantial growth and improved operational efficiency:

Metric	Q2 FY26	Q2 FY25	YoY Change
Gross Premium Income	₹9,601.70 crores	₹8,413.49 crores	14.1% ↑
Investment Income	₹3,791.67 crores	₹3,483.32 crores	8.9% ↑
Profit Before Tax	₹3,472.76 crores	₹2,281.12 crores	52.2% ↑
Profit After Tax	₹2,866.79 crores	₹1,860.75 crores	54.1% ↑

Operational Performance

The company's operational metrics showed notable improvements:

Combined Ratio: Improved to 109.15% from 114.05% in the same quarter last year.
Incurred Claim Ratio: Decreased to 81.5% from 93.6% year-on-year.
Adjusted Combined Ratio: Stood at 84.04% for H1 FY26, compared to 88.86% in the previous year.

Solvency and Net Worth

GIC Re's financial stability indicators remained robust:

Solvency Ratio: Improved to 3.85 as of September 2025, up from 3.42 in September 2024.
Net Worth (excluding fair value change): Increased to ₹46,669.38 crores from ₹39,481.33 crores year-on-year.
Net Worth (including fair value change): Stood at ₹88,709.19 crores, compared to ₹90,917.70 crores in the previous year.

Business Segment Performance

The company reported growth across its domestic and international operations:

Domestic Premium: Grew by 4.6% to ₹17,080.66 crores in H1 FY26.
International Premium: Increased by 9.4% to ₹4,909.05 crores.
Premium Mix: Domestic business accounted for 78% of total premiums, while international business contributed 22%.

Management Commentary

Hitesh Joshi, Executive Director with Additional Charge of CMD at GIC Re, commented on the results: "This quarter reaffirms the strength of our strategic direction and our disciplined approach to navigating market conditions. We remain focused on executing our strategy with rigor and delivering sustainable value to our stakeholders."

Outlook

GIC Re's management expressed confidence in their ability to address the evolving competitive landscape and capitalize on emerging opportunities. The company plans to leverage its recently restored A- rating from AM Best, particularly in international markets, which may drive growth in the coming quarters.

Challenges and Strategies

While the overall performance was strong, the life segment faced challenges with a combined ratio of 114% due to reserve strengthening. The company expects this trend to continue for the next 2-3 quarters as it adjusts to post-COVID mortality experiences.

GIC Re maintains a disciplined approach to underwriting and portfolio management, with a medium-term objective of achieving a 60:40 ratio between domestic and foreign business. The company remains cautious about the potential impact of changes in obligatory cessions but is confident in its ability to adapt to regulatory shifts.

As GIC Re continues to navigate the dynamic reinsurance landscape, its focus on underwriting discipline, pricing adequacy, and portfolio optimization is expected to drive sustainable growth and value creation for stakeholders.