GIC Re aims to build on FY25 growth, unfazed by its rivals

Part of the strategy is also expanding the international business, says CMD Narayanan

- Anshika Kayastha

Encouraged by promising results in the previous fiscal year, General Insurance Corp. of India (GIC) Re is looking to take the fight to its private-sector and foreign rivals. The country's largest and oldest reinsurance company grew its non-obligatory business for the first time in four years.

The reinsurer posted a net profit of ₹6,701 crore for FY25, higher than ₹6,497 crore in the previous year. Earned premium for the year stood at ₹36,130 crore compared to ₹33,576 crore in FY24.

Combined ratio, a profitability metric that indicates whether an insurer is making an underwriting profit or loss, improved to 108.8% for FY25 from 111.8% in FY24. Ramaswamy Narayanan, the company's chairman and managing director, is aiming to bring this to below 100% over the next 6-7 years. Underwriting loss for the year reduced 16.4% to ₹3,352 crore.

In an interview with Mint, Narayanan said the firm is unfazed by the entry of new private players and falling market share, and the focus is on profitability and improving the combined ratio.

"Today, I have the capital and the solvency. Going forward, GIC will write big-ticket shares in areas where there is profitability, growth and which gives us diversification. You will not see us writing the same classes again. We will look for opportunities elsewhere."