GIC’s March Quarter Profit Falls As Higher Claims And Costs Weigh On Earnings

General Insurance Corp of India’s net profit for the March quarter slipped 17% year on year to ₹21.8 billion, hit by rising claims and commissions despite strong premium and investment income growth. Profit rose 35% sequentially. Total expenses climbed 37% to ₹91.1 billion from ₹66.4 billion a year earlier, driven by a steep rise in claims that reached ₹69.4 billion, up 17%.

The company’s incurred claim ratio stood at 82.2%, higher than 68.9% a year ago but down from 87.8% in the previous quarter. Net commission payouts surged 28% year on year to ₹19.1 billion, further pressuring the bottom line.

Total income grew 23% year on year to ₹113.6 billion, helped by gross premiums rising to ₹103.7 billion and investment income climbing to ₹26.5 billion. Net premium earned increased 20% to ₹86.8 billion. Despite narrowing the underwriting loss to ₹3.9 billion from a profit of ₹5.7 billion a year ago, rising expenses dragged earnings.

For fiscal 2024-2025,underwriting loss fell 16.4% to ₹33.5 billion from ₹40.1 billion in 2024-24. Gross premiums increased to ₹411.5 billion from ₹371.8 billion, and gross investment income grew to ₹127.0 billion from ₹116.2 billion.

Growth was led by the fire segment, where premiums rose 7.4% to ₹137.2 billion, and the miscellaneous segment covering motor, health, and agriculture, which grew 15.1% to ₹244.9 billion. Marine premiums dropped 28.4% to ₹10.8 billion.

Operational metrics improved slightly with the combined ratio falling to 108.8% from 111.8% and the adjusted combined ratio marginally better at 85.8% from 86.2%. The solvency ratio increased to 3.70 as of March 31, up from 3.25 a year earlier.

For the full year, GIC posted a net profit of ₹67.0 billion, slightly up from ₹65.0 billion in 2023-24. Total income for 2024-25 rose to ₹449.9 billion from ₹423.6 billion. The company announced a final dividend of ₹10 per share.