Financial Performance Overview
General Insurance Corporation of India (GIC Re) reported strong financial results for FY 2025-26, with standalone net profit growing 25.23% to ₹8,392 crore from ₹6,701 crore in FY25. Gross premium income increased 6.93% to ₹44,007 crore, while net earned premium rose 9% to ₹39,378 crore. The improved performance was driven by better underwriting results, with losses reducing by 47.4% to ₹1,763 crore, and a combined ratio improving to 106.02% from 108.81% in the previous year.
Dividend and Capital Structure
The Board recommended a final dividend of ₹13.25 per equity share (265% of face value) for FY25-26, compared to ₹10 per share for FY24-25. The solvency ratio strengthened significantly to 4.21 from 3.70, well above the regulatory requirement of 1.50. Total assets grew 5.1% to ₹197,221 crore, with shareholders' funds increasing 19% to ₹51,301 crore.
CAG Audit Observations and Regulatory Compliance
The Comptroller and Auditor General raised significant observations including questioning the recognition of ₹613 crore deferred tax asset on catastrophe reserve as not complying with AS 22 accounting standards, and misclassification of ₹62 crore UAE VAT penalty under operating expenses instead of penalties. Management defended the DTA treatment as appropriate and committed to reclassify the VAT penalty from FY27.
Corporate governance disclosures noted partial non-compliance with SEBI LODR regulations regarding board composition requirements during transition periods due to government appointment processes. The corporation was identified as a Domestic Systemically Important Insurer (D-SII) for FY25-26 by IRDAI.
Subsidiary and International Operations
Consolidated net profit grew 30% to ₹966 crore, with international subsidiaries contributing positively. GIC UK reported profit of £261,000 with £217.9 million investment portfolio, while GIC Perestrakhovanie LLC in Russia recorded RUB 210 million net profit with RUB 6.08 billion total assets. All foreign operations operate under proportional reinsurance arrangements with the parent company.
Investment Performance and Contingent Liabilities
Investment income reached ₹13,089 crore with mean yield of 10.60%. The corporation maintained strong credit ratings with AM Best upgraded to A- (Excellent) and CARE reaffirmed AAA (Is) with stable outlook. Contingent liabilities included disputed income tax demands of ₹26,166 crore, GST show cause notices of ₹306 crore, and service tax notices of ₹509 crore.
Corporate Governance and AGM
The 54th Annual General Meeting is scheduled for 22nd September 2026 to approve financial statements, dividend, and director appointments including Shri Hitesh Joshi as Chairman-cum-Managing Director. CSR expenditure of ₹69.28 crore was incurred against the requirement of ₹135.78 crore, with unspent amount transferred to separate account for future utilization.