General Insurance Corporation of India (GICRE) Q1 24/25 earnings summary

Executive summary

• Gross premium income for Q1 FY25 rose to INR 12,405.68 crore, up from INR 8,917.71 crore in Q1 FY24, driven by domestic growth and accounting changes in agriculture.

• Profit after tax increased to INR 1,036.36 crore from INR 731.79 crore year-over-year.

• Domestic premium accounted for 84% of total, with international at 16%; international book declined due to discontinued contracts.

• Focus on portfolio diversification, especially into retail health, to mitigate risk and reduce reliance on catastrophe-prone segments.

• Results include two foreign branches, one run-off foreign branch, and one domestic branch.

Financial highlights

• Combined ratio improved to 109.6% from 118.47% year-over-year; adjusted combined ratio (including investment income) at 92.97%.

• Incurred claims ratio decreased to 89.8% from 95.1% in the prior year.

• Investment income increased to INR 2,758.99 crore from INR 2,559.31 crore.

• Net worth (excluding fair value changes) rose to INR 38,635.23 crore; including fair value changes, INR 85,926.02 crore.

• Underwriting loss narrowed to INR 1,288.53 crore from INR 1,557.44 crore year-over-year.

Outlook and guidance

• Maintains guidance of 15-16% annual growth, primarily from domestic business.

• Combined ratio expected to remain flat or show slight improvement, with a medium-term target of 105-106%.

• International growth contingent on credit rating upgrade, with potential impact from January renewals.

• Indian general insurance market expected to grow at a 9.9% CAGR during 2021-2026.

• Catastrophe Reserve not created for the quarter due to uncertainties; will be considered at year-end.