General Insurance Corporation of India (GICRE) Q3 24/25 earnings summary

Executive summary

• Q3 FY 2025 showed strong progress in building a resilient reinsurance business amid market challenges, with disciplined underwriting, risk diversification, and a focus on health and emerging areas like cybersecurity and surety bonds.

• Largest reinsurer in India with ~51% domestic market share, presence in 137 countries, and support for 59 direct insurers.

• Consistently profitable with strong solvency, improving credit rating, and optimism for sustained momentum and long-term underwriting profitability.

• Consolidated gross premiums written for the quarter were ₹10,10,573 lakh, up from ₹9,01,470 lakh in the same quarter last year; nine-month gross premiums reached ₹31,20,925 lakh, up from ₹28,97,672 lakh year-over-year.

• Net profit after tax for the quarter was ₹1,62,343 lakh, compared to ₹1,86,492 lakh in the prior year quarter; nine-month net profit was ₹4,61,010 lakh, up from ₹3,95,402 lakh year-over-year.

Financial highlights

• Gross premium income for Q3 FY 2025 was INR 9,967.71 crores, up from INR 8,778.26 crores in Q3 FY 2024; nine-month gross premium was ₹31,20,925 lakh, up from ₹28,97,672 lakh.

• Incurred claims ratio declined to 87.8% from 103.1% year-over-year; combined ratio improved to 107.8% from 120.5%.

• Investment income for Q3 FY 2025 was INR 2,627.17 crores, down from INR 3,361.54 crores year-over-year; nine-month investment income was ₹6,07,724 lakh, down from ₹6,68,138 lakh.

• Profit before tax rose to INR 2,168.69 crores (Q3 FY 2025) from INR 1,923.81 crores (Q3 FY 2024); profit after tax increased to INR 1,621.35 crores from INR 1,517.95 crores.

• Net worth (excluding fair value change) was INR 40,745.48 crores as of 31/12/2024, up from INR 35,031.89 crores; including fair value change, it was INR 85,803.69 crores.

Outlook and guidance

• Targeting 8%-10% annual growth, aiming for INR 40,000–41,000 crores in premium for FY 2025.

• Focus on international expansion, especially in Afro-Asian markets, and growth in new areas like surety bonds, cyber risk, and parametric covers.

• Combined ratio expected to reduce by 2-2.5% year-on-year, aiming for below 105% over the next few years.

• Building catastrophe reserves for climate change risk and continued improvement in underwriting profitability and credit rating.

• Financial Strength Rating (FSR) upgraded to 'A- (Excellent)' and Long-Term Issuer Credit Rating (ICR) to 'a- (Excellent)' with a stable outlook for FY 2024-25.