Mumbai: General Insurance Corporation of India (GIC Re) reported a strong profit performance in the third quarter of FY26, even though its core insurance business remained under pressure. For the quarter ended December 31, 2025, the reinsurer posted a net profit of Rs 1,518.9 crore, compared with Rs 1,621.3 crore in the same quarter last year.
The profit was mainly supported by healthy investment income, which continued to act as a cushion against underwriting losses.
Premium growth stays steady
GIC Re’s gross premium written rose to Rs 10.99 lakh crore in Q3 FY26, up from Rs 9.97 lakh crore a year ago. On a nine-month basis, gross premium touched Rs 32.98 lakh crore, showing steady growth compared with the previous year.
Net premium earned for the quarter stood at ₹9.58 lakh crore, reflecting stable retention levels. The net retention ratio improved to 94.25%, indicating that the company retained a higher share of business instead of ceding it to reinsurers.
Investment income drives earnings
Investment income remained the key strength. During the quarter, investment income (net) stood at ₹1,87,976 lakh, helping total income rise to ₹11.56 lakh crore. Over nine months, investment income crossed ₹6.68 lakh crore, providing strong support to overall profitability.
This steady investment performance helped offset losses in underwriting, especially in segments like motor, health, and marine insurance.
Underwriting losses continue
Despite higher premiums, GIC Re reported an underwriting loss of ₹551.8 crore in Q3 FY26. Claims remained high, with the incurred claim ratio at 87.94%. The combined ratio stood at 105.32%, meaning expenses and claims were higher than premium income from insurance operations alone.
However, the adjusted combined ratio improved to 87.17%, helped by investment income allocated to policyholders.
Balance sheet and solvency remain strong
GIC Re’s financial position stayed comfortable. The solvency ratio improved to 3.87, well above regulatory requirements. Total investments increased to ₹1.49 lakh crore, while reserves and surplus rose to ₹49,813 crore, strengthening the balance sheet.
Disclaimer: This article is based on company disclosures and financial statements. It is for information only and does not constitute investment advice. Readers should consult advisors before decisions.
