General Insurance Corporation of India (GIC Re) reported its financial performance for Q3 FY’26 (period ended December 31, 2025). Key metrics showed gross premium income rising to INR 10,986.55 crore, up from INR 9,967.71 crore year-over-year. The solvency ratio improved to 3.87. Management discussed market hardening, underwriting discipline, and strategies for reclaiming international business lost due to past rating downgrades, targeting a 60/40 international/domestic mix long-term.
Q3 FY’26 Financial Performance Overview
The conference call reviewed the financial results for the third quarter and nine months ended December 31, 2025. Mr. Hitesh Joshi highlighted that the global insurance market is entering a more balanced phase following structured hardening, emphasizing the deployment of capital with greater sensitivity and technical rigor.
Key Financial Metrics (Q3 FY’26 vs. Previous Year Q3)
- Gross Premium Income: Stood at INR 10,986.55 crore, compared to INR 9,967.71 crore in the corresponding quarter of the previous year.
- Incurred Claim Ratio: Remained stable at 87.9% (vs. 87.8%).
- Combined Ratio: Improved to 105.32% (compared to 107.83% previously).
- Adjusted Combined Ratio (Nine Months): Improved to 85.08% (from 89.12%).
- Investment Income: Increased to INR 2,924.47 crore (from INR 2,627.17 crore).
- Profit After Tax: Stood at INR 1,518.92 crore (compared to INR 1,621.35 crore).
- Solvency Ratio: Improved to 3.87 as of 31st December ’25 (from 3.52).
- Net Worth (excluding FVC): Increased to INR 48,490.40 crore.
Premium Mix and Growth Guidance
For the nine months, the premium breakup showed a split of 77% domestic (INR 25,388.97 crore) and 23% international (INR 7,587.29 crore). Management expects the overall growth of the corporation to mirror the 9% to 12% growth range of the Indian reinsurance market, aligning with the goal of maintaining market share.
Regarding the combined ratio, the company reaffirmed its guidance of achieving about a 1% improvement per annum on a composite portfolio basis, emphasizing quality over chasing volume.
Market Strategy and Underwriting Focus
Management addressed several segment-specific areas:
International Business & Credit Rating: Mr. Joshi noted that regaining business lost due to the downgrade (before October ’24) will take 3 to 5 years. The long-term objective for the risk book composition remains 60/40 (International/Domestic). The renewed ‘A’ rating is expected to facilitate access to better quality contracts.
High Combined Ratios (International): Focus areas for underwriting improvement include Motor (combined ratio around 190%), Cargo (around 282%), Life (around 138%), and Health (around 143%) in the international book. Management confirmed steps are being taken to manage these classes.
Obligatory Business Dynamics: In response to shareholder queries, it was clarified that a reduction in the obligatory business percentage (currently around 38% of revenue) is not necessarily a loss. A portion (estimated at 25% to 50%) can convert readily into voluntary, non-obligatory business, granting more freedom in capital deployment.
Motor Domestic Growth: Growth in domestic motor business is a mix, with almost 84% or 85% being obligatory. Non-obligatory motor foreign business saw negative results, mainly from Israel and Turkey, leading to portfolio de-risking during the January 1st renewals.
CAT Reserve Position
The company confirmed it is building a strategic Catastrophe (CAT) reserve, which currently stands at about INR 2,000 crore. This reserve will be built up long-term, potentially reaching INR 5,000 crore before a major review, and utilization requires Board approval following a major catastrophe affecting the P&L.
Source: BSE
