GIC Re profit after tax rises 69% to `1,752 crore in June quarter

Mumbai: General Insurance Corporation of India (GIC Re) announced its financial results for the quarter ended June 30, 2025, reporting a strong performance with a 69.08 per cent year-on-year rise in Profit After Tax (PAT) to Rs 1,752.23 crore.

Profit Before Tax also surged by 61.04 per cent to Rs 2,243.54 crore.

Gross Premium Income stood at Rs 12,388.01 crore, marginally lower than Rs 12,405.68 crore recorded in Q1 FY25.

The decline was attributed to a change in accounting norms for long-term policies by IRDAI, making the figures non-comparable.

Despite two extraordinary claims—Jindal Poly Films fire and an Air India aviation loss—the incurred claims ratio rose only slightly to 90.42 per cent from 89.77 per cent a year ago.

Underwriting losses narrowed significantly, down 29.55 per cent to Rs 907.76 crore compared to Rs 1,288.53 crore in the same quarter last year.

The company’s combined ratio improved to 106.94 per cent from 109.60 per cent, while the adjusted combined ratio dropped to 87.51 per cent from 92.97 per cent, indicating better operational efficiency.

Gross investment income rose by 18.37 per cent to Rs 3,228.51 crore. GIC Re’s total assets grew by 5.89 per cent to Rs 1,97,539.62 crore, and its solvency ratio improved to 3.85 from 3.36.

Net worth (excluding fair value changes) climbed 17.19 per cent to Rs 45,275.48 crore, while inclusive net worth stood at Rs 89,512.55 crore, a 4.17 per cent increase.

The company also adopted quarterly provisioning for catastrophic reserves, impacting PAT and PBT by Rs 143.47 crore.