Finding a Winning Formula

RAMASWAMY HAS SET GIC RE ON A COURSE WHERE PROFITABLE GROWTH BECOMES A WAY OF LIFE.

- BY NAVNEET DUBEY

RAMASWAMY NARAYANAN, former chief executive officer of General Insurance Corporation of India (GIC Re), speaks with quiet confidence, a man who knows his company has turned the corner. Addressing employees and analysts on September 24, 2025, after GIC Re's standout financial year, Ramaswamy did not shy away from sharing both numbers and the thinking behind them.

“If you look at last year’s performance, I think it looks very good. It has been an excellent performance from the company, because honestly, we managed to improve all the important ratios that we were looking at,” he said, just before he retired on September 30.

However, on October 3, GIC Re’s stock traded around ₹367 on the BSE, down nearly 4.5% over the past year. Trading just above its 52-week low of ₹347 and well below its high of ₹525, the stock has faced a steady decline from its earlier highs.

Kranthi Bathini, equity strategist at WealthMills Securities Pvt. Ltd, says GIC Re and PSU stocks are currently in a consolidation phase.

“Earlier, the stock had strong momentum when it touched around ₹500, but since then, it has entered a period of sideways trading... the company has demonstrated steady revenue growth.”

Bathini is positive about the outlook for insurance companies, particularly general insurance players. “The long-term story is intact, and these companies are likely to do well,” says Bathini.

GIC Re posted a record profit before tax (PBT) of ₹8,765 crore in FY25, its highest ever.

Ramaswamy, who has risen through the ranks at GIC Re after joining as a direct recruit in 1988, tells Fortune India, “We have never had this kind of profit before.”

Underwriting losses decreased from approximately ₹4,600 crore to ₹3,351 crore. The solvency ratio, a key measure of financial strength, rose to 370%, well above the regulatory requirement of 150%, indicating it is very well-capitalised and ready to take on larger business.