GIC Re maintains strong capitalisation in FY 2024

In FY 2024, the company reported a consolidated ROE of 9.5%.

General Insurance Corporation of India has seen an improvement in its balance sheet fundamentals, which AM Best assessed as very strong. 

The company’s risk-adjusted capitalisation, measured by Best’s Capital Adequacy Ratio (BCAR), has shown a positive trend over the past four years and remained at the strongest level for the fiscal year 2024 (FY 2024). 

This is attributed to a significant rise in shareholders’ equity, driven by gains in investment fair value and increased retained earnings. AM Best expects GIC Re to maintain this strong capitalisation over the medium term. 

However, the company’s high exposure to domestic equity investments remains a balancing risk.

GIC Re’s operating performance is rated as adequate, supported by a five-year average return on equity (ROE) of 6.5% from FY 2020 to 2024. 

In FY 2024, the company reported a consolidated ROE of 9.5%, despite unprofitable underwriting performance and a high combined ratio. 

Investment income, particularly from realised gains on equity investments, continues to play a major role in GIC Re's overall earnings, offsetting the absence of technical profits.

AM Best considers GIC Re’s business profile to be favourable. The company is the 10th largest reinsurer globally, based on AM Best’s most recent ranking of the top 50 global reinsurers. 

Domestically, GIC Re holds a dominant market share, averaging 60% to 70% in recent years, benefiting from mandatory reinsurance cessions and a right of first refusal on domestic placements. GIC Re's underwriting portfolio is diversified by business lines and geography.