General Insurance Corporation of India
26 May 2026
General Insurance Corporation of India Posts 25% YoY Profit Rise
General Insurance Corporation of India (BSE: 540755 | NSE: GICRE)
Date of announcement: 26 May 2026
1. Board Meeting Outcome (26 May 2026)
- The Board approved the audited standalone and consolidated financial results for the quarter and the full financial year ended 31 Mar 2026, together with the auditors’ report.
- Auditors: M/s SHBA & Co. LLP and M/s SARA & Associates issued unmodified opinions.
- Dividend recommendation: Rs 13.25 per fully‑paid equity share (265 % of face value ₹5) for FY 2025‑26, pending approval at the 54th AGM.
- Record date for dividend: 4 Sept 2026 (as per Regulation 42 of SEBI LODR).
- The meeting ran from 18:00 hrs to 19:00 hrs.
2. Key Financial Highlights (FY 2025‑26)
| Metric (₹ Lakhs) | FY 2025‑26 (Audited) | FY 2024‑25 (Audited) |
|---|---|---|
| Total Income | 48,90,062 | 44,98,782 |
| Total Expense | 42,05,066 | 39,62,547 |
| Operating Profit | 6,84,996 | 5,36,235 |
| Profit after Tax | 8,39,218 | 6,70,136 |
| EPS (basic & diluted) | ₹ 47.84 | ₹ 38.20 |
| Solvency Ratio | 4.21 | 3.70 |
| Combined Ratio | 106.02 % | 108.81 % |
| Adjusted Combined Ratio | 84.79 % | 85.79 % |
| Net Retention Ratio | 92.19 % | 91.96 % |
| Expenses of Management Ratio | 0.97 % (of net premium) | 0.89 % |
All figures are presented in ₹ Lakhs unless otherwise noted.
Operating Results (Quarter ended 31 Mar 2026)
- Gross Premiums Written: 11,03,048
- Net Premiums Written: 9,91,707
- Premium Earned (Net): 9,78,506
- Income from Investments (net): 1,92,898
- Other Income (incl. FX gain): 44,609
3. Segment‑wise Performance (FY 2025‑26)
| Segment | Net Premium (₹ Lakhs) | Operating Profit (₹ Lakhs) | Underwriting Profit/Loss (₹ Lakhs) |
|---|---|---|---|
| Fire | 12,00,473 | 3,51,264 | +292 |
| Motor | 7,49,688 | 72,328 | ‑1,36,422 |
| Aviation | 37,549 | ‑19,043 | ‑36,564 |
| Engineering | 1,81,245 | 73,070 | +19,800 |
| Workmen Compensation | 3,369 | 1,149 | ‑496 |
| Liability | 79,032 | 18,346 | ‑4,251 |
| Personal Accident | 75,480 | 11,341 | ‑772 |
| Health | 9,19,023 | 25,951 | ‑68,418 |
| Agriculture | 3,33,040 | 1,02,767 | +13,826 |
| Other Miscellaneous | 1,14,429 | 31,650 | +12,059 |
| FL/Credit | 27,286 | 21,995 | +13,760 |
| Marine – Cargo | 44,925 | 14,638 | ‑1,689 |
| Marine – Hull | 49,007 | 33,790 | +13,772 |
| Life | 2,42,579 | ‑54,250 | ‑92,127 |
Underwriting profit/loss reflects the difference between net premium earned and total underwriting expenses (including claims).
4. Balance Sheet Snapshot (31 Mar 2026)
| Item | 31 Mar 2026 (₹ Lakhs) | 31 Mar 2025 (₹ Lakhs) |
|---|---|---|
| Total Assets | 86,46,680 | 84,92,233 |
| – Shareholders’ Fund | 11,16,461 | 12,81,790 |
| – Policyholders’ Fund | 21,56,368 | 27,29,991 |
| – Investments (Shareholders) | 48,68,376 | 44,72,858 |
| – Investments (Policyholders) | 92,24,457 | 93,34,516 |
| Cash & Bank | 27,79,122 | 24,63,649 |
| Current Liabilities | 89,88,687 | 83,23,306 |
| – Provisions | 20,86,725 | 19,46,031 |
| Net Current Assets | ‑55,92,708 (deficit) | ‑54,27,743 |
The corporation continues to operate with a strong capital base (solvency 4.21) despite a negative net current asset position, typical for a reinsurer with large policyholder liabilities.
5. Cash‑Flow Summary (FY 2025‑26)
| Cash‑flow Category | 2026 (₹ Lakhs) | 2025 (₹ Lakhs) |
|---|---|---|
| Operating Activities | ‑65,317 | ‑77,011 |
| Investing Activities | ‑58,724 | +1,50,751 |
| Financing Activities | ‑175,440 | ‑175,440 |
| Net Change in Cash | ‑6,138 | ‑23,013 |
| Cash at End of Period | 701,206 | 707,344 |
6. Shareholder Returns & Capital Management
- Final dividend for FY 2025‑26: Rs 13.25 per share (subject to AGM approval).
- The dividend is payable within 30 days of declaration at the AGM.
- Record date: 4 Sept 2026.
7. Regulatory & Governance Highlights
| Item | Detail |
|---|---|
| Compliance | Board filings made under SEBI (LODR) Regulations 2015 (Regulations 30, 33, 42, 43). |
| Auditor Opinion | Unmodified opinions from SHBA & Co. LLP and SARA & Associates. |
| Ratings | AM Best reaffirmed FSR A‑ (Excellent) and ICR a‑ (Excellent) with Stable outlook for FY 2025‑26. |
| Catastrophe Reserve | Continued creation of a catastrophe reserve (≈ 73.9 bn ₹ for FY 2025‑26) – 10 % of operating profit, capped at 5 bn ₹. |
| Branch Restructuring | Dubai branch remains in run‑off; portfolio transfer to GIFT‑City branch is in progress with UAE regulator. |
| Labour Law Updates | Incorporation of new Indian labour codes; incremental employee benefit provision of ₹ 29 Lakhs recognized for FY 2025‑26. |
| Asset Accounting Rectification | Reversal of excess depreciation of ₹ 728 Lakhs identified and corrected. |
| Life‑Re Business | IBNR provisions increased by ≈ 702 Crores due to adverse mortality experience. |
8. Outlook & Risk Considerations (as disclosed)
- The corporation notes that quarterly results are seasonal and not indicative of full‑year performance.
- Catastrophe risk is managed through the dedicated reserve, but large loss events could affect profitability.
- Regulatory changes (new labour codes, IRDAI circulars) may lead to additional provisions or policy adjustments.
- Foreign branch run‑off (Dubai) and portfolio migration to the domestic GIFT‑City branch could entail transition risks.
Bottom line for investors:
General Insurance Corporation of India posted a solid FY 2025‑26 with a ₹ 8.39 bn profit after tax, a solvency ratio of 4.21, and a recommended final dividend of Rs 13.25 per share. While the balance sheet shows a net current asset deficit—a common feature for reinsurers—the strong capital adequacy and continued rating affirmation support the company’s financial resilience. The
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