General Insurance Corporation of India (GIC Re) held its Q4 FY26 earnings conference call on 1st June 2026, with management including Executive Director Mrs. Jayashri Balkrishna and General Manager & Chief Underwriting Officer Mr. Sanjay Mokashi.

Financial Performance Highlights

Q4 FY26 Results:

  • Gross premium income: ₹11,030.48 crores (vs. ₹10,367 crores in Q4 FY25)
  • Investment income: ₹3,059.46 crores (vs. ₹3,903.02 crores in Q4 FY25)
  • Incurred claims ratio: 80.8% (vs. 82.2% in Q4 FY25)
  • Combined ratio: 103.43% (vs. 103.56% in Q4 FY25)
  • Profit before tax: ₹2,960 crores (vs. ₹2,922.66 crores in Q4 FY25)
  • Profit after tax: ₹2,254.24 crores (vs. ₹2,182.88 crores in Q4 FY25)

Full Year FY26 Results:

  • Gross premium income: ₹44,006.74 crores (vs. ₹41,153.95 crores in FY25)
  • Domestic business contribution: ₹32,979.23 crores (75% of total)
  • International business contribution: ₹11,027.51 crores (25% of total)
  • Combined ratio: 106.02% (improved from 108.81% in FY25)
  • Adjusted combined ratio (factoring in policyholders' investment income): 84.79% (vs. 85.79% in FY25)
  • Profit after tax: ₹8,392.18 crores (up 25.23% from ₹6,701.36 crores in FY25)
  • Solvency ratio: 4.21 (improved from 3.70 at previous year-end)
  • Net worth excluding fair value change: ₹51,301.27 crores (vs. ₹43,106.52 crores)
  • Net worth including fair value change: ₹84,029.57 crores (vs. ₹83,224.33 crores)

Market Context and Business Environment

Management noted that the global reinsurance market is shifting towards a competitive phase with softening trends across both property and long-tail casualty lines. Risk fundamentals remain elevated due to climate-related loss volatility, inflation, claims severity, and geopolitical dynamics. Investment income continues to be an important earnings contributor alongside improving underwriting performance.

April 2026 Renewals and Competitive Landscape

The company addressed increased competition from two new domestic reinsurers and multiple IFSC insurance offices (IIOs) in GIFT City. Despite competitive pressures, GIC Re maintained underwriting discipline while supporting insurance partners. The obligatory 4% cession to GIC Re remains for FY26-27, with management expressing confidence in their established market position.

Segment-wise Performance and Outlook

Domestic Business:

  • Fire segment faced pricing softening, but the company used reinsurance levers to protect balance sheet
  • Growth expected to be single-digit in FY27 due to soft market conditions
  • Combined ratio target: 1-2% improvement year-on-year

International Business:

  • Market showing softening trends with ample capital availability
  • Leveraging A rating upgrade to secure better quality business
  • Motor portfolio pruning ongoing with results expected to manifest gradually
  • Target: More than 2% improvement in combined ratio

Specific Business Lines:

  • Motor: 83% domestic, 60% obligatory; international motor showing degrowth due to portfolio pruning
  • Fire: Q4 decline primarily in international portfolio; overall marginal decline expected
  • Health: Approach remains cautious, especially for government schemes; results stable
  • Agriculture: New tender cycle with states opting for cup and cap or burn cost models

Capital Management and Dividend

Solvency ratio strengthened significantly to 4.21. Dividend payout declared at 13.25%, which is 32.5% higher than previous years. Capital will be utilized for impending Risk-Based Capital (RBC) norms and IFRS implementation.

Management Commentary

Executive Director Jayashri Balkrishna stated: "Our approach has been centered on improving underwriting outcomes at a portfolio level, supported by risk-adjusted capital deployment and selective participation across segments. These improvements have been driven by execution and discipline rather than reliance on cyclic pricing conditions."

Chief Underwriting Officer Sanjay Mokashi emphasized underwriting discipline: "We ensured that we strike a balance between utilization of our capital capacity and also supporting our insurance partners who have been navigating difficult times with increased level of competition on direct side."