GIC Re reports Rs 30,786cr in premium income – here’s what’s driving growth

General Insurance Corporation of India (GIC Re), the country’s largest reinsurer, has reported strong financial growth for the nine months ended December 31, 2024. The company demonstrated resilience through a steady increase in gross premium income, an improvement in underwriting performance, and a strengthened solvency ratio. GIC Re continues to maintain its dominance in the Indian reinsurance sector while adapting to shifts in the international market.

The company’s gross premium income for the nine-month period stood at ₹30,786.87 crore, reflecting an 8.2% increase from ₹28,458.11 crore in the same period in 2023. This growth was primarily driven by domestic market expansion, which contributed 77% of the total premium revenue. However, the international segment saw a decline as General Insurance Corporation of India strategically adjusted its risk portfolio to align with evolving market conditions.

How Has GIC Re Improved Its Underwriting Performance?

GIC Re recorded a notable reduction in underwriting losses, which fell to ₹2,959.34 crore from ₹4,576.63 crore in the previous year. This improvement underscores the company’s strategic focus on better risk assessment, disciplined underwriting, and improved claims management. The combined ratio, a key metric of underwriting profitability, improved to 110.46% from 117.99%, while the adjusted combined ratio, which accounts for investment returns, stood at 89.12% compared to 92.37% in the prior period.

The company’s solvency ratio saw a significant improvement, increasing to 3.52 from 2.94 in 2023. This reflects GIC Re’s strengthened financial position, ensuring greater capacity to meet regulatory requirements and absorb potential risks. The company’s efforts to optimize its underwriting strategies have played a crucial role in enhancing profitability and operational efficiency.

What Are the Key Drivers of GIC Re’s Premium Income Growth?

GIC Re’s premium income growth was fueled by strong performance in key insurance segments, though certain areas faced challenges. The fire insurance segment generated ₹9,929.71 crore in gross premium, reflecting a 5.7% year-on-year increase. The health reinsurance business witnessed an exceptional surge of 87.1%, reaching ₹6,988.18 crore, driven by increasing participation in India’s growing health insurance sector.

The motor reinsurance segment, however, saw a decline of 21.5%, with gross premium falling to ₹4,589.72 crore. The reduction in this segment reflects a shift in underwriting strategy amid evolving regulatory requirements and changes in market demand. Agriculture reinsurance dipped slightly by 2.4% to ₹3,057.22 crore as General Insurance Corporation of India adjusted its approach to rural insurance policies. The marine insurance segment suffered a sharp 49% contraction, falling to ₹791.70 crore, largely due to a decline in international cargo reinsurance.

GIC Re’s emphasis on risk diversification and strategic underwriting adjustments has enabled it to maintain strong premium income growth while mitigating potential market volatility. The company’s ability to rebalance its portfolio ensures continued financial stability despite challenges in certain segments.

How Has GIC Re’s Investment Strategy Impacted Its Earnings?

Despite market fluctuations, GIC Re continues to maintain a strong investment portfolio. Investment income for the nine-month period stood at ₹8,869.50 crore, reflecting a marginal decline from ₹9,186.92 crore in the previous year. The slight reduction was attributed to market volatility and strategic asset reallocations.

Despite this, the company’s profit before tax rose significantly to ₹5,842.98 crore, compared to ₹4,706.58 crore in the prior year. This increase highlights the company’s ability to balance underwriting operations with a well-diversified investment approach. GIC Re’s net worth, excluding fair value changes, also grew to ₹40,745.48 crore from ₹35,031.89 crore, reinforcing its financial strength and liquidity.

What Does GIC Re’s Global Positioning Mean for Future Growth?

General Insurance Corporation of India remains a key reinsurance provider across multiple regions, particularly in the Afro-Asian market, the Middle East, and SAARC nations. The company ranks as the 10th largest global reinsurer group, based on non-IFRS 17 financials compiled by AM Best. It holds an A- (Excellent) financial strength rating with a stable outlook, reflecting investor confidence and operational resilience.

Although the international business segment saw a 19.7% decline in premium revenue, GIC Re’s focus on strengthening its domestic portfolio and optimizing global partnerships is expected to drive long-term revenue stability. The company is actively expanding its footprint through strategic alliances while maintaining a cautious approach to risk exposure in volatile international markets.

What Is the Outlook for GIC Re?

GIC Re’s financial performance underscores its ability to navigate a dynamic reinsurance landscape. With a combination of premium income growth, reduced underwriting losses, and disciplined investment management, the company is positioned for sustainable expansion. Its improved solvency ratio and balanced risk selection further strengthen its outlook for long-term profitability.

As India’s insurance industry continues to expand, GIC Re is expected to maintain its leadership position by leveraging its underwriting expertise, capital strength, and technological advancements. The company is also well-positioned to capitalize on emerging trends, including digital insurance solutions, climate risk management, and regulatory reforms that are shaping the future of reinsurance.

GIC Re’s financial results for the nine months ended December 31, 2024, reflect a strong trajectory driven by premium income growth, improved underwriting performance, and strategic investment management. The reinsurer’s ability to reduce underwriting losses while maintaining a healthy solvency ratio underscores its operational resilience.

With a well-diversified risk portfolio, disciplined capital allocation, and ongoing investments in emerging market opportunities, General Insurance Corporation of India is well-positioned to sustain its market leadership. The company’s focus on maintaining financial stability and expanding its presence in high-growth segments ensures a strong foundation for continued success in both domestic and global markets.