General Insurance Corporation of India (GIC Re), India’s national reinsurer, announced its financial results for the fiscal year ending March 31, 2024. The company reported steady growth in premium income alongside challenges in underwriting performance.
For the year ended March 31, 2024, GIC Re achieved a gross premium income of ₹37,181.76 crore, marking a slight increase from ₹36,591.59 crore in the previous fiscal year. However, the underwriting loss widened to ₹4,006.56 crore from ₹2,341.37 crore, indicating a challenging underwriting environment.
Investment income rose to ₹11,620.40 crore, up from ₹10,594.00 crore in FY 2022-23. The company recorded a profit before tax of ₹7,877.93 crore, compared to ₹7,749.44 crore in the previous fiscal year. The profit after tax stood at ₹6,497.30 crore, up from ₹6,312.50 crore in FY 2022-23.
The solvency ratio improved significantly to 3.25 as of March 31, 2024, from 2.61 the previous year, demonstrating strengthened financial stability. Total assets grew to ₹1,78,285.82 crore, compared to ₹1,57,124.60 crore as of March 31, 2023.
The company’s net worth, excluding the fair value change account, increased to ₹37,581.78 crore, up from ₹32,356.08 crore. Including the fair value change account, the net worth surged to ₹81,330.25 crore from ₹63,749.61 crore.
The domestic business contributed 69 per cent to the gross premium, with ₹25,804.02 crore, while the international business accounted for 31 per cent, with ₹11,377.73 crore. Segment-wise, miscellaneous insurance, particularly motor and health, showed significant growth, with motor insurance premiums increasing by 18.6 per cent and health insurance premiums increasing by 17.2 per cent.
However, agriculture insurance premiums declined by 27.4 per cent. Total incurred claims were ₹30,980.41 crore, slightly down from ₹32,739.38 crore, reflecting efforts to manage claim costs. The overall combined ratio rose to 111.82 per cent from 109.31 per cent, indicating increased underwriting losses, while the adjusted combined ratio also increased to 88.02 per cent from 86.96 per cent.
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GIC Re’s group, which includes subsidiaries and associate companies, reported consolidated gross premium income of ₹37,867.15 crore, up from ₹37,128.75 crore. The group’s investment income was ₹11,670.21 crore, up from ₹10,664.75 crore.
The consolidated profit before tax was ₹7,924.90 crore, slightly down from ₹8,031.18 crore, and the profit after tax was ₹6,685.86 crore, compared to ₹6,907.31 crore in the previous year. Despite these challenges, the group’s net worth (excluding the fair value change account) increased to ₹40,834.75 crore from ₹35,483.45 crore.
