GIC Re India enjoys strong balance sheet and favorable business profile

Shareholder equity has increased in the past five years.

General Insurance of India (GIC Re India) possesses a very strong balance sheet and favorable business profile, according to AM Best.

GIC Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation, which is expected to be maintained at its strongest level over the medium term, AM Best said in a report on 9 October 2025.

The company’s shareholder equity has notably increased significantly over the past five years, driven by investment fair value gains and an increase in retained earnings, AM Best said.

“Notwithstanding, the company’s exposure to market risk remains a partially offsetting balance sheet strength factor, given its relatively high allocation to domestic equity investments,” it added.

GIC Re’s business profile is deemed “favorable” as it is the 9th largest non-IFRS 17 reinsurer globally, and is the leading reinsurer in India.

The company continues to benefit from mandatory domestic reinsurance cessions of 4%, and also a right of first refusal that provides it with preferential access to domestic reinsurance placements, AM Best wrote.

GIC Re’s operating performance is deemed adequate, supported by a five-year average return-on-equity (ROE) ratio of 8.2%. In fiscal year 2025, GIC Re reported an ROE ratio of 9.2% based on consolidated profits, although its underwriting performance remained unprofitable with an elevated combined ratio.

“Investment income, including realised gains on equity investments, is a key contributor of overall earnings and historically has made up for the lack of technical profits,” AM Best said.