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Informist, Monday, May 26, 2025

 

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--GIC Jan-Mar net profit INR 21.83 bln vs INR 26.42 bln year ago 
--GIC Jan-Mar total income INR 113.64 bln vs INR 92.22 bln year ago 
--GIC to pay INR 10 per share dividend 
--GIC FY25 net profit INR 67.01 bln vs INR 64.97 bln year ago 
--GIC FY25 total income INR 449.88 bln vs INR 423.60 bln year ago 

 

By Sachi Pandey

 

MUMBAI – General Insurance Corp of India's profit slipped in the March quarter, as higher claims and commissions weighed on earnings despite strong growth in premiums and investment income. The underwriting loss of the company narrowed, but not enough to offset the rise in overall expenses.

 

The state-owned reinsurer reported a net profit of INR 21.82 billion for the quarter, down 17% on year. However the proft rose 35% on a sequential basis. The company's total expenses rose to INR 91.06 billion, up 37% on year from INR 66.39 billion a year ago. Although the expenses were lower than INR 93.59 billion in Oct–Dec, a steep rise in claims continued to pressure margins. Claims paid increased to INR 69.42 billion, up 17% on year. The incurred claim ratio was at 82.19%, up from 68.93% a year ago, though it was down from 87.83% in the previous quarter.

 

Net commission payouts of the company also surged, rising to INR 19.10 billion, up 28% on year and 7.81% sequentially. This added further pressure to the bottom line.

 

Total income of the company rose to INR 113.64 billion, up 23% on year and 8.4% sequentially, driven by growth in premiums and investment income. Gross premium written rose to INR 103.67 billion from INR 87.24 billion a year ago and INR 99.68 billion in the previous quarter. Net premium earned was at INR 86.80 billion, up 20% on year and 2% on a sequential basis. Investment income of the company rose to INR 26.50 billion from INR 20.13 billion a year ago and INR 17.03 billion in the previous quarter. Despite this, a sharp rise in expenses dragged the bottom line.

The company also managed to reduce its underwriting loss for the quarter to INR 3.92 billion, down from profit of INR 5.70 billion a year ago. For the full year 2024-25 (Apr-Mar), underwriting loss fell 16.35% to INR 33.52 billion from INR 40.07 billion in FY24, the company said in a press release. On an annual basis, GIC's gross premium income rose to INR 411.54 billion in FY25 from INR 371.82 billion a year ago. Gross investment income grew to INR 127.03 billion from INR 116.20 billion.

 

Segment-wise, growth came from fire and miscellaneous segments. Fire premiums rose 7.4% to INR 137.19 billion, while the miscellaneous segment—covering motor, health, and agriculture—saw premiums rise 15.1% to INR 244.88 billion. However, marine premiums dropped 28.4% to INR 10.79 billion. 

 

Operational metrics showed slight improvement. The combined ratio for FY25 declined to 108.81% from 111.82% a year ago. The adjusted combined ratio improved marginally to 85.79% from 86.24%. The solvency ratio rose to 3.70 as of March 31, compared with 3.25 a year earlier.

 

For the full year, GIC posted a net profit of INR 67.01 billion, marginally higher than INR 64.97 billion in FY24. Total income for FY25 rose to INR 449.88 billion from INR 423.60 billion a year ago. GIC also announced a final dividend of INR 10 per share. 

The Indian government retained its 82.40% stake in GIC Re as of Mar. 31. Shares of the company closed 1% higher at INR 431.50 on the National Stock Exchange on Monday.   End

 

Edited by Akul Nishant Akhoury

 

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