GIC Re Q4 profit falls 17% as underwriting turns negative

General Insurance Corporation of India (GIC Re) reported a 17% decline in net profit to Rs 2,183 crore for the quarter ended March 2025, down from Rs 2,642 crore in the same period last year. The state-owned reinsurer’s profitability was impacted by weaker underwriting performance, even as premium collections rose.

GIC Re’s combined ratio rose sharply to 103.56% in Q4 FY25 from 89.26% a year earlier, indicating a deterioration in underwriting efficiency. The company booked an underwriting loss of Rs 392 crore in Q4 FY25, compared to an underwriting profit of Rs 570 crore in the year-ago quarter. Despite this, GIC Re’s board has recommended a dividend of Rs 10 per equity share for FY25.

Gross premium income rose to Rs 10,367 crore during the quarter, up from Rs 8,724 crore in Q4 FY24. On the premium front, the reinsurer recorded an 18.8% increase in domestic premium while international premium declined by 7.8%. Domestic business contributed 75.25% of total premium in FY25.

The company’s solvency ratio, a key measure of financial strength, improved to 3.70 as of March 2025, compared to 3.25 a year earlier.

However, investment income rose to Rs 3,930 crore during the quarter, up from Rs 3,036 crore last year.