GIC Re Q2FY25 results: Net profit increases 16% to Rs 1,860.76 crore

The underwriting loss of the company decreased by 26 per cent to Rs 1,088.43 crore from Rs 1,471.61 crore

The domestic reinsurer, GIC Re’s net profit rose by 15.9 per cent year-on-year (Y-o-Y) to Rs 1,860.76 crore in Q2 FY25 from Rs 1,605.09 crore in the year-ago period, driven by healthy growth in investment income and a decline in commission.

 

Sequentially, the net profit rose by 74.4 per cent from Rs 1,036.06 crore in Q1 FY25.

 

The domestic reinsurer, GIC Re’s net profit rose by 73 per cent Y-o-Y to Rs 420.38 crore in Q2 FY25 from Rs 242.51 crore in the year-ago period, on the back of healthy growth in investment income and a fall in commission.

 

 

Sequentially, the net profit rose by 17.8 per cent from Rs 356.8 crore in Q1 FY25. The investment income of the company grew by 6.6 per cent to Rs 3,483.34 crore. However, the commission dropped by 9.67 per cent to Rs 1,493.68 crore. The net premium of the company declined by 23.71 per cent to Rs 7,603.76 crore.

 

The solvency ratio of the reinsurer as on September 30, 2024, stood at 342 per cent, compared to 282 per cent as on September 30, 2023. The combined ratio of the company narrowed to 114.05 per cent from 115.83 per cent during the same period.

 

The underwriting loss of the company narrowed by 26 per cent to Rs 1,088.43 crore from Rs 1,471.61 crore.

 

Meanwhile, during the first half of FY24, the total assets stood at Rs 1.94 trillion as on September 30, 2024, compared to Rs 1.67 trillion as on September 30, 2023.

 

Recently, GIC Re has been identified as a Domestic Systemically Important Insurer (D-SII) by the insurance regulator Irdai. It holds a rating of A- (Excellent) with a Stable Outlook Financial Strength Rating by AM Best.