Mumbai: General Insurance Corporation of India (GIC Re) reported a 9.69% year-on-year increase in standalone Profit After Tax (PAT) to Rs 1,922.04 crore for the quarter ended June 30, 2026, compared with Rs 1,752.23 crore in the corresponding quarter of the previous year.
The company announced its financial performance at a Board meeting held in Mumbai. The standalone results showed improvement in premium growth, claims performance and underwriting losses. However, on a consolidated basis, net profit declined 14.8% to Rs 1,743.67 crore, mainly due to a sharp fall in the share of profit from associate companies.
GIC Re Gross Premium Income Rises 8.8%
GIC Re’s standalone Gross Premium Income increased 8.8% year-on-year to Rs 13,475.36 crore in Q1FY27, compared with Rs 12,388.01 crore in Q1FY26.
The company’s Net Premium Written also increased to Rs 12,664.12 crore from Rs 11,635.89 crore in the year-ago quarter.
Standalone Profit Before Tax (PBT) rose 11% to Rs 2,490.25 crore, compared with Rs 2,243.54 crore in Q1FY26.
Investment income stood at Rs 3,265.51 crore, slightly lower than Rs 3,313.74 crore recorded in the corresponding quarter last year.
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Underwriting Performance Improves
GIC Re reported a significant improvement in its standalone underwriting performance during the quarter.
The company’s underwriting loss declined 20.26% to Rs 723.87 crore, compared with Rs 907.76 crore in Q1FY26.
The incurred claims ratio also improved to 85.04% from 90.42%, indicating lower claims intensity during the quarter.
The standalone combined ratio improved to 104.88% from 106.94% in the year-ago period.
However, the expense of management ratio increased to 1.0% from 0.6%.
Consolidated Profit Declines 14.8%
Despite the improvement in standalone performance, GIC Re’s consolidated results were weaker.
Consolidated Gross Premium Written increased 9.1% to Rs 13,541.51 crore. However, consolidated Profit Before Tax declined 17.7% to Rs 2,191.78 crore, compared with Rs 2,663.67 crore in Q1FY26.
Consolidated Profit After Tax fell 14.8% to Rs 1,743.67 crore.
The decline was primarily linked to a sharp fall in the company’s share of profit from associate companies, which dropped to Rs 122.73 crore from Rs 357.82 crore in the corresponding quarter.
Consolidated Underwriting Loss Widens
The consolidated underwriting performance also remained under pressure during the quarter.
The consolidated underwriting loss increased to Rs 1,057.32 crore, compared with Rs 526.89 crore in Q1FY26.
The consolidated incurred claims ratio increased to 87.90% from 86.84%, while the expense of management ratio rose to 1.08% from 0.69%.
The divergence between the standalone and consolidated figures highlights the impact of associate company performance on GIC Re’s overall profitability.
Health and Life Reinsurance Segments See Strong Growth
Health insurance emerged as the fastest-growing segment during the quarter, with gross premiums increasing 36.68% to Rs 3,407.78 crore.
Life reinsurance also recorded strong growth, with premiums rising 145.23% to Rs 1,354.97 crore.
Domestic business remained the largest contributor to GIC Re’s gross premiums, accounting for around 83% of the total.
Key segment movements included:
- Domestic business: Rs 11,218.34 crore, up 12.3% year-on-year.
- International business: Rs 2,257.02 crore, down 5.8%.
- Health: Rs 3,407.78 crore, up 36.68%.
- Life: Rs 1,354.97 crore, up 145.23%.
- Agriculture: Rs 1,587.86 crore, down 22.92%.
- Fire: Rs 3,225.33 crore, down 9.8%.
Total Assets Rise 5.19%
GIC Re’s balance sheet remained strong during the quarter.
Total assets increased 5.19% to Rs 2,07,789.87 crore as of June 30, 2026, compared with Rs 1,97,539.62 crore as of June 30, 2025.
Net worth excluding the fair value change account rose to Rs 53,124.50 crore, compared with Rs 45,275.48 crore a year earlier.
Including the fair value change account, net worth stood at Rs 90,790.41 crore, compared with Rs 89,512.55 crore as of June 30, 2025.
The company’s solvency ratio improved to 4.32 from 3.85, indicating a strong capital position.
IRDAI Grants Ind AS Implementation Forbearance
GIC Re also received approval from the Insurance Regulatory and Development Authority of India (IRDAI) for a one-year forbearance on the implementation of Ind AS.
Following the approval, the transition date has been deferred to April 1, 2027.
The company also booked an IBNR provision of Rs 4,400 crore subsequent to the balance sheet date in connection with severe flooding in Gujarat.
AM Best Affirms GIC Re Rating
International rating agency AM Best affirmed GIC Re’s Financial Strength Rating at ‘A- (Excellent)’ with a stable outlook.
The rating reflects the company’s financial strength and its position in the global reinsurance market.
What GIC Re Q1FY27 Numbers Show
The Q1FY27 results show a clear difference between GIC Re’s standalone operations and its consolidated performance.
On a standalone basis, the company delivered:
- 9.69% growth in net profit
- 11% growth in Profit Before Tax
- 8.8% growth in gross premium income
- 20.26% reduction in underwriting loss
- Improvement in the incurred claims ratio and combined ratio
- Stronger solvency ratio of 4.32
However, lower contributions from associate companies weighed on the consolidated bottom line. This resulted in a 14.8% decline in consolidated net profit, despite growth in consolidated gross premiums.
About GIC Re
General Insurance Corporation of India (GIC Re) is India’s national reinsurer and plays an important role in supporting the country’s insurance industry. The company provides reinsurance across various lines of business, including property, health, agriculture, marine, motor and life insurance, while also maintaining a presence in international markets.
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