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General Insurance Corporation of India

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤7th Feb 26

Summary : General Insurance Corporation of India reported strong Q3 FY25-26 results with improved solvency, operating profit, and premium growth, while proactively managing risks.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Total Expense increased to 31,72,365 Lakhs (YTD Dec 2025) from 30,48,654 Lakhs (YTD Dec 2024).
  2. Consolidated Change in Outstanding Claims (Incl. IBNR/IBNER) significantly increased to 1,25,718 Lakhs (Q3 FY25-26) from 48,281 Lakhs (Q3 FY24-25).
  3. Consolidated Underwriting Profit/(Loss) improved to (34,578) Lakhs (Q3 FY25-26) from (59,720) Lakhs (Q3 FY24-25).
  4. Consolidated Gross Premiums Written increased to 33,20,685 Lakhs (YTD Dec 2025) from 31,20,925 Lakhs (YTD Dec 2024).
  5. Consolidated Net Premium Written increased to 30,89,695 Lakhs (YTD Dec 2025) from 28,43,614 Lakhs (YTD Dec 2024).
  6. Consolidated Premium Earned (Net) increased to 29,82,976 Lakhs (YTD Dec 2025) from 27,46,181 Lakhs (YTD Dec 2024).
  7. Consolidated Income from investments (net) increased to 6,72,472 Lakhs (YTD Dec 2025) from 6,07,724 Lakhs (YTD Dec 2024).
  8. Balances due to/from and deposits are subject to confirmation/reconciliation; provisions made for unconfirmed balances over three years.
  9. Consolidated Total Assets increased to 99,51,606 Lakhs (Dec 2025) from 88,79,961 Lakhs (Mar 2025).
  10. Consolidated Reserves and Surplus increased to 55,02,935 Lakhs (Dec 2025) from 47,78,196 Lakhs (Mar 2025).
  11. Consolidated Total Investments increased to 1,55,13,687 Lakhs (Dec 2025) from 1,43,28,022 Lakhs (Mar 2025).
  12. Consolidated Current Liabilities increased to 90,48,354 Lakhs (Dec 2025) from 86,23,267 Lakhs (Mar 2025).
  13. Both standalone and consolidated financial results are presented.
  14. Consolidated results include GIC Re South Africa, GIC Re India Corporate Member, GIC Perestrakhovanie LLC, Agriculture Insurance Company, GIC - Bhutan Reinsurance, and India International Insurance.

Corporate Overview

  1. Operations include domestic and foreign branches.
  2. Dubai branch is in run-off, business transferred to GIFT City branch in India.
  3. Seasonality of the industry means quarter and nine-month results are not indicative of full year performance.
  4. Reliance on Appointed Actuaries for valuation of Incurred But Not Reported (IBNR), Incurred But Not Enough Reported (IBNER), Premium Deficiency Reserve (PDR), and Technical Reserves (TR).
  5. General Insurance Corporation of India (GIC Re) operates as a reinsurance company.
  6. The report maintains a factual and regulatory tone, focusing on financial performance and compliance.
  7. As a reinsurance company, customers are primarily other insurance entities.
  8. Fire
  9. Motor
  10. Aviation
  11. Engineering
  12. Workmen Compensation
  13. Liability
  14. Personal Accident
  15. Health
  16. Agriculture
  17. FL/Credit
  18. Marine Cargo
  19. Marine Hull
  20. Life
  21. Other Miscellaneous
  22. Segment-wise data indicates broad operational capacity across various insurance lines.
  23. Application for portfolio transfer and de-registration of Dubai branch is in progress, with business moving to GIFT City branch.

Risk Factors

  1. Industry seasonality impacts full year performance.
  2. Uncertain financial impact of new labor codes.
  3. Auditors did not review all foreign branches.
  4. Reliance on actuaries for critical liability valuations.

Key Drivers

  1. Strong solvency and combined ratio improvement.
  2. Significant growth in operating profit.
  3. Increased gross and net premiums.
  4. Proactive catastrophe reserve enhances stability.

Auditor’s Report

  1. Limited Review Report (not an audit opinion).
  2. No material misstatement found in the unaudited financial results.
  3. Review of unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025.
  4. Review did not cover all foreign and Indian branches.
  5. Reliance on Appointed Actuaries' Certificates for actuarial liabilities (IBNR, IBNER, PDR, TR).
  6. Consolidated results include subsidiaries and associates, some based on unaudited financials.
  7. Financial information of certain subsidiaries and associates are based on different reporting dates due to unavailability of timely financials.

Board Commentary

  1. Interim Dividend of ₹10.00 per share declared.
  2. New Labour Codes' financial impact is being assessed.
  3. Volatility in claims is a recognized risk.
  4. Evaluation of financial implications from new Labour Codes (Wages, Industrial Relations, Social Security, Occupational Safety, Health and Working Conditions Code, 2020) is ongoing.
  5. Catastrophe Reserve created annually from FY2022-23, now quarterly from Q1 FY2025-26, with a cap of ₹500,000 lakhs.

Corporate Governance

  1. Audit committee reviewed and recommended the financial results.
  2. The Corporation does not fall under 'Large Corporate' criteria, so certain SEBI disclosures are not applicable.

Management Discussion & Analysis

Future Strategy

  1. Transferring Dubai branch business to GIFT City branch for continued operations.

Industry Overview

  1. Industry is subject to seasonality, affecting interim financial results.

Operational Focus Areas

  1. Assessing applicability and financial implications of new Labour Codes (Code on Wages, Industrial Relations Code, Code on Social Security, Occupational Safety, Health and Working Conditions Code, 2020).

Performance Drivers

  1. Improved Solvency Ratio (3.87 vs 3.52 YTD).
  2. Lower Expenses of Management Ratio (0.91 vs 0.95 YTD).
  3. Improved Incurred Claim Ratio (85.42 vs 87.92 YTD).
  4. Improved Combined Ratio (102.98 vs 108.01 YTD).
  5. Significant increase in Operating Profit (Consolidated Q3 FY25-26: 1,54,466 Lakhs vs 1,11,059 Lakhs Q3 FY24-25).
  6. Growth in Gross Premiums Written (Consolidated Q3 FY25-26: 11,08,346 Lakhs vs 10,10,573 Lakhs Q3 FY24-25).

Risk Control Measures

  1. Creation of a Catastrophe Reserve to manage future volatility in claims and stabilize financial results.
  2. Catastrophe Reserve is being provided on a quarterly basis since June 30, 2025.

Critical Risks

  1. Potential financial implications from new Labour Codes are under evaluation.
  2. Volatility in claims is a factor, addressed by catastrophe reserve.