GIC Re Profit Rises 9.7% To ₹1,922 Crore In Q1 FY27

General Insurance Corporation of India (GIC Re) has reported a 9.7 percent year-on-year rise in standalone profit after tax to ₹1,922.04 crore for the first quarter of FY27. This is compared to ₹1,752.23 crore in the same quarter of the previous fiscal year.

The company's gross premium income also increased by 8.8 percent year-on-year to ₹13,475.36 crore, up from ₹12,388.01 crore in Q1 FY26. However, sequentially, the profit declined by 15 percent from ₹2,254.25 crore in Q4 FY26, while the gross premium rose by 22 percent from ₹11,030.48 crore.

GIC Re's standalone profit before tax increased by 11 percent year-on-year to ₹2,490.25 crore in Q1 FY27, compared to ₹2,243.54 crore in Q1 FY26. The net premium rose to ₹12,664.12 crore from ₹11,635.89 crore, while the earned premium stood at ₹11,081.46 crore, down from ₹11,088.21 crore in the year-ago quarter.

The reinsurer's incurred claims declined by 6 percent year-on-year to ₹9,423.96 crore from ₹10,026.16 crore. The incurred claims ratio improved to 85.04 percent from 90.42 percent, while the combined ratio declined to 104.88 percent from 106.94 percent.

In terms of sequential performance, the standalone profit after tax declined by 15 percent from ₹2,254.25 crore in Q4 FY26, while the profit before tax fell by 16 percent from ₹2,960.02 crore. However, the investment income increased by 6.7 percent sequentially to ₹3,265.51 crore from ₹3,059.46 crore.

The company reported an underwriting loss of ₹723.87 crore in Q1 FY27, compared to an underwriting profit of ₹84.31 crore in Q4 FY26. On a year-on-year basis, the underwriting loss narrowed by 20 percent from ₹907.76 crore.

Domestic business drove the premium growth, with domestic gross premium increasing by 12 percent year-on-year to ₹11,218.34 crore, accounting for 83 percent of the total premium. International premium declined by 5.8 percent to ₹2,257.02 crore, contributing 17 percent.

Among business segments, health premium jumped by 37 percent year-on-year to ₹3,407.78 crore, while life premium surged by 145 percent to ₹1,354.97 crore. Agriculture premium declined by 23 percent to ₹1,587.86 crore, while fire premium fell by 9.8 percent to ₹3,225.33 crore.

GIC Re's solvency ratio improved to 4.32 as of June 30, 2026, from 3.85 a year earlier. The net worth, excluding the fair value change account, increased to ₹53,124.50 crore from ₹45,275.48 crore. Total assets rose by 5.2 percent year-on-year to ₹2,07,789.87 crore from ₹1,97,539.62 crore.

The improved financial performance of GIC Re is a positive sign for the insurance industry, indicating a growth in demand for insurance products. The company's focus on domestic business and its ability to improve its solvency ratio are key factors contributing to its success.

In conclusion, GIC Re's 9.7 percent rise in standalone profit and 8.8 percent growth in gross premium income are significant achievements, demonstrating the company's ability to navigate the challenges of the insurance industry and emerge stronger.