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

Executive summary

• Q2 and H1 FY25 performance showed resilience and strategic discipline, with improved profitability and a focus on combined ratio and portfolio quality.

• Maintained approximately 60% share in the Indian reinsurance market and ranked 10th largest global reinsurer group.

• AM Best upgraded the international credit rating to A (Excellent) with a stable outlook, supporting future international business growth.

• Consolidated net premium written for H1 FY25 was ₹19,20,747 lakh, up from ₹18,29,308 lakh year-over-year.

• 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.

• H1 FY25 gross premiums written were ₹21,10,351 lakh, up from ₹19,96,202 lakh year-over-year.

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

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

• Solvency ratio improved to 3.42 as of September 30, 2024, up from 2.82 a year earlier.

Outlook and guidance

• Domestic premium grew 24.8% in H1 FY25, while international premium declined 31.9%; domestic/international split is now 78%/22%.

• 15% premium growth guidance for FY25 remains unchanged; impact of rating upgrade on international business expected from FY26.

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

• 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.

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