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Informist, Thursday, Aug. 7, 2025

--GIC gross NPA ratio 1.09% as on Jun 30 vs 1.13 qtr ago 
--GIC solvency ratio 3.85 times as on Jun 30 vs 3.36 times year ago 
--GIC Apr-Jun total income INR 133.52 bln vs INR 119.64 bln year ago 
--GIC Apr-Jun net profit INR 17.52 bln vs INR 10.36 bln year ago

By Priyasmita Dutta and Cassandra Carvalho
 

NEW DELHI/MUMBAI – General Insurance Corp. of India's net profit for the June quarter rose sharply by 70% on year on the back of healthy premium income, narrowing of underwriting losses and a fall in commissions. At INR 17.52 billion, the state-owned reinsurer's net profit was, however, down 20% sequentially. The insurer's net premium income was up 10% on year at INR 110.88 billion. Sequentially, the premium income was higher by 28%.

The general insurer's underwriting losses narrowed to INR 9.08 billion from INR 12.89 billion a year ago. But, on a sequential basis, the underwriting losses nearly tripled. The company's total income increased 11.6% on year to INR 133.52 billion in the June quarter. The company released the financial results post market hours. Shares of the company closed 0.7% lower at INR 378 on the National Stock Exchange on Thursday.

Gross premium income of the company was INR 123.88 billion for the reporting quarter, lower than INR 124.06 billion in the year-ago period. However, the company said the year-ago figure was not comparable due to new accounting norms introduced by the Insurance Regulatory and Development Authority of India in October, which led to lower premium numbers in the reporting quarter. The company's gross premiums for fire incidents fell nearly 7% on year to INR 35.76 billion in the June quarter. Its gross premiums in the health segment fell 13% on year to INR 24.93 billion in the reporting quarter. Marine cargo grew the most among segments, up 26% on year at INR 1.59 billion. 

The company reported a solvency ratio of 3.85 as of Jun. 30, up from 3.36 a year ago. 

The insured claims ratio was 90.42% in the June quarter, slightly up from 89.77% in the year-ago period. The claims ratio rose on account of INR 23.00 billion claimed as a 100% loss from Jindal Poly Films in a fire, and from the recent crash of an Air India flight in Ahmedabad, the company said in its press release. The insurance company's incurred claims were INR 100.26 billion in the reporting quarter, from INR 71.34 billion a quarter ago.  

The company said its profit after tax was less by INR 1.43 billion due to provisions for catastrophic reserves on a quarterly basis, which was done on an annual basis previously. The company's total assets increased 5.89% on year to INR 1.975 trillion as of Jun. 30. 

The insurer's combined ratio fell to 106.94% in the June quarter, from 109.60% in the year-ago quarter. The company reported nearly a 16% on-year drop and a 3% sequential fall in its net commission to INR 18.49 billion in Apr-Jun.  End  

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