GIC Re : penetration level at under I%

GIC Re  ~51% market share in the Indian reinsurance market

  • GIC ReSupport to 59 Direct General and Life Insurance companies in India
  • Reinsures every non-life insurance player in India 
  • Portfolio Breakup Rs. 1,46,851Cr ( Equity – Focus on investing in index based stocks with strong ROE, Outstanding order book and weeding out the weak scrips on every rise in the Indices. )    
  • Consolidated Gross Premium Income of the company was 41,955.33 crore for the year ended 31.03.2025 as compared to 37,867.15 crore for the year ended 31.03.2024.
  • Gross Investment Income of the group was 12,835.05 crore for the year ended 31.03.2025 as compared to ~ 11,670.21 crore for the year ended 31.03.2024.
  • Consolidated Profit Before Tax for the Year ended 31.03.2025 was 9,104.64 crore as compared to Profit Before Tax  7,924.90 crore for the year ended 31.03.2024.
  • Consolidated Profit After Tax for the year ended 31.03.2025 was 7,431.84 crore as compared to Profit After Tax  6,685.86 crore for the year ended 31.03.2024.
  • Group's net worth (without fair value change account) for the year ended 31.03.2025 is t46,961.16 crores as compared to 40,834.75 crore for the year ended 31.03.2024.   
  • GIC Re is focused on improving net incurred claims ratio by working towards reducing the attritional losses and commission ratios are expected to remain stable
  • Leverage its position of 10th rank (Globally) based on the scale it affords and excellent credit ratings from AM Best and domestically from CARE   

GIC Re : penetration level at under I%

  • Group's net worth (without fair value change account) for the half year ended 30.09.2024 is z43,029.24 crores as compared to ~ 36,498.86 crore for the half year ended 30.09.2023.
  • Incurred claims Ratio is 91.06% for the half year ended 30.09.2024 as compared to 95.72% for the half year ended 30.09.2023. 
  • Consolidated Profit After Tax for half year ended 30.09.2024 was 3,256.36 crore as compared to Profit After Tax of 2,666.60 crore for the half year ended 30.09.2023. 
  • Investment Income of the group was 6,280.37 crore for the half year ended 30.09.2024 as compared to 5,859.85 crore for the half year ended 30.09.2023. 
  • Consolidated Gross Premium Income of the company was 21,103.51 crore for the half year ended 30.09.2024 as compared to~ 19,962.02 crore for the half year ended 30.09.2023   
  • The general insurance business in India has penetration level at under I% thus indicating great potential. Its dominant position in the Indian market stems from long-term and strong relationships with the Indian risk carriers     

India’s General Insurance Corporation (GIC Re) continues to focus on growth within its domestic portfolio following strong April 1 2024 renewals, says Ramaswamy Narayanan, Chairman & MD of GIC Re, in an interview with CNBC TV18.

At GIC Re’s April 1 renewals, its domestic portfolio witnessed substantial growth, increasing by nearly 30%. Narayanan expects this growth to contribute to a 10-12% overall increase in the reinsurer’s net premium earned for the current financial year.

Narayanan explains that GIC Re is currently prioritising the expansion of its domestic book over its international one. Consequently, its international book remained flat at the January 1 2024 renewals.

He states, “we have not really grown our international book because we still wanted to consolidate there to ensure that the business that we are writing is good. We also need to get our international credit rating to a level where we are able to attract and write the best businesses available in that market.”

Narayanan continues, “Currently, the focus is more on the domestic book. And that is where we are planning to grow and that’s certainly grown in this positive renewals by about 30%.”

Looking ahead to the 24/25’FY, GIC Re’s domestic book will constitute 75% of the total, with the remaining 25% comprising its international portfolio.

However, Narayanan notes that if the company does expand its international book within the next year, the growth will become visible in the 2025/26’FY.

When questioned about GIC Re’s underwriting profitability outlook, Narayanan attributed the unprofitable combined ratio to nine catastrophic events affecting the Indian market, particularly since its domestic portfolio comprises most of its book.

Despite this, Narayanan expressed optimism about the improvement of the combined ratio: “Nine months in FY’24 we showed a combined of 117%. It’s still pretty early to actually give you a figure, but we do believe that will improve going forward in the fourth quarter, simply because that is the quarter in which internationally you don’t see that many catastrophic events happening.”

“Going forward, with the kind of businesses that we have written , we are very confident that our combined ratios will improve,” he adds.


Thank you for contacting Rounaq! 

Please let us know how we can help you. 


Have you subscribed to my channel yet ?

Book your consultation: https://topmate.io/rounaq_bakshi
NISM-Series-XV: Research Analyst Certified 
Waheguru

Comments

Post a Comment

Popular posts from this blog

Transcript of NMDC Limited post Q4 & FY 2024-25 Results

Image
Transcript of NMDC Limited post Q4 & FY 2024-25 Results Growth in PAT on an annual or a year-on-year 12-month basis of around 19% and PBT after exceptional item of around 16% Gold operations in Legacy, the first year was have also stabilized Legacy in the last 2 months, 3 months.  And hopefully, in this financial year, Legacy would also be showing good profits IMPORTS India which imports around 55 million, 60 million tons is likely to go up to 150 million to 160 million tons of import for India in terms of coking coal.  Have entered into arrangement with SAIL 60% of total sales as of date is routed through SAIL because send it to their stocking yard.  So based on the user charge, they also market mmdc products 40% still Nmdc market directly in terms of HR coils 2025 year will be much more substantially action packed in terms of NMDC Open new mines within India, coal and iron ore Outside India, we hope to acquire a few mines.  This will be a year where it will be ...
Read more

Looking to park some excess funds for the short term.?

Image
Looking to park some excess funds for the short term.  LiquidBeES by Nippon - has been the default choice for years. But lately, it’s become muscle memory to run everything past ChatGPT.  Just a quick: “Is there a better option than LiquidBeES?” It turns out, there is.  LIQUIDCASE by Zerodha AMC.  Difference was not subtle and decision was easier : - Expense ratio: Less than half of LiquidBeES - Net returns: ~6.2% vs ~5.7% (1-year annualized) - Same safety, same liquidity - AUM already >1/3rd of LiquidBeES in record time This is how discovery is changing. And this is how smart products go viral. Zerodha didn’t try to educate the market.  Discovery is no longer driven by ads or advisors.  It’s driven by habit, trust, and tools like ChatGPT. And when you get it right, traction follows fast. I won’t be surprised if LIQUIDCASE overtakes LiquidBeES in under 18 months. Thank you for contacting Rounaq! Please let us know how we can help you.  About me :...
Read more

𝐖𝐑𝐲 𝐃𝐨 ππ‘πˆπ¬ 𝐈𝐧𝐯𝐞𝐬𝐭 𝐒𝐧 𝐈𝐧𝐝𝐒𝐚?

Image
  𝐖𝐑𝐲 𝐃𝐨 ππ‘πˆπ¬ 𝐈𝐧𝐯𝐞𝐬𝐭 𝐒𝐧 𝐈𝐧𝐝𝐒𝐚? Whether you're living in the US, UAE, UK, or Singapore; India continues to be a hotspot for wealth creation. But why do so many NRIs still invest here? Here’s why πŸ‘‡ ✅ Higher Returns – Indian equity markets, mutual funds, and even fixed deposits offer attractive long-term returns. ✅ Tax-Free Income – Interest from NRE and FCNR deposits is tax-free in India. Plus, DTAA helps avoid double taxation. ✅ Currency Edge – You invest in INR, and with the right timing, your gains in foreign currency terms could be even higher. ✅ Diversification – Indian assets like gold, real estate, and stocks add balance to a global portfolio. ✅ Future Ready – Planning to return to India someday? Build your base early with property or retirement-focused investments. ✅ Emotional Roots – Beyond numbers, India is still home. πŸ’‘ Whether it’s for wealth creation, retirement planning, or building assets back home, India offers a solid mix of growth + stability...
Read more