General Insurance Corporation of India (GICRE) Q2 24/25 earnings summary

Executive summary

• Q2 and H1 FY25 performance demonstrated resilience and strategic discipline, with a focus on improving combined ratio and portfolio quality amid challenging reinsurance market conditions.

• Maintained approximately 60% share in the Indian reinsurance market, leading most domestic treaty programs and facultative placements.

• Ranked 10th largest global reinsurer group (non-IFRS 17 reporting) with A- (Excellent) or A (Excellent) rating and stable outlook from AM Best, supporting future international business growth.

• Gross written premium for H1 FY25 grew 5.8% year-over-year to ₹20,819.16 crore, with domestic business up 24.8% and international down 31.9%.

• Profit after tax for H1 FY25 rose to ₹3,25,637 lakh, a significant increase from ₹2,56,178 lakh in H1 FY24.

Financial highlights

• Gross premium income for Q2 FY25 was INR 8,413.49 crores, down from INR 10,762.14 crores in the previous quarter.

• Investment income for H1 FY25 was ₹4,36,945 lakh, up from ₹4,25,160 lakh in H1 FY24.

• Incurred claims ratio improved to 91.06% for H1 FY25, down from 95.72% in H1 FY24.

• Combined ratio for H1 FY25 was 111.31%, improved from 115.96% in H1 FY24.

• Solvency ratio increased to 3.42 as of September 30, 2024, up from 2.42 a year earlier.

Outlook and guidance

• No change in H2 FY25 outlook; 15% premium growth guidance for FY25 reaffirmed.

• International business growth expected to materialize from FY26, following the rating upgrade and 1st Jan renewals.

• Combined ratio targeted to move toward 100% over the next three to five years, with a focus on sustainable improvement.

• Indian general insurance market expected to grow at 9.9% CAGR during 2021-2026, with reinsurance premiums projected to reach ₹989.75 billion by 2025.

• Catastrophe reserve allocation was deferred for the quarter and half year due to uncertainties; reserve creation will be considered at year-end.