📌 At a Glance
GIC Re clocked a ₹6,701 Cr PAT in FY25, up 3.1% YoY, with gross premiums crossing ₹41,000 Cr and investment income of ₹12,772 Cr. The solvency ratio improved to 3.70, underwriting losses narrowed, and combined ratio improved slightly. Yet, the stock remains a market laggard — probably because investors can’t decide if it’s a PSU tortoise or a hidden compounder.
🏢 About the Company
- Type: India’s largest reinsurance company (state-owned)
- Global Rank: 10th largest reinsurer globally (non-IFRS 17 group)
- Presence: 137 countries, branches in London & KL, Lloyd’s syndicate
- Subsidiaries: South Africa, Russia, UK
- Associates: GIC Bhutan, IIB Singapore, Agriculture Insurance Co.
GIC Re is what happens when LIC and Swiss Re have a baby and the IRDAI babysits.
👨💼 Key Managerial Notes
- Satheesh Kumar – Company Secretary
- Board Notes: No auditor red flags. Solvency & net worth both improved.
- Forward Plan: Moving away from investment-income dependency and focusing on underwriting discipline.
📊 FY25 Financial Highlights (Standalone)
| Metric | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Gross Premium | ₹41,153.95 Cr | ₹37,181.76 Cr | +10.7% |
| Net Premium | ₹37,844.21 Cr | ₹33,955.79 Cr | +11.4% |
| Investment Income | ₹12,772.52 Cr | ₹12,223.46 Cr | +4.5% |
| Underwriting Loss | ₹-3,351.60 Cr | ₹-4,006.56 Cr | ↓16.35% |
| Profit Before Tax | ₹8,765.64 Cr | ₹7,877.93 Cr | +11.27% |
| Profit After Tax | ₹6,701.36 Cr | ₹6,497.30 Cr | +3.1% |
| Total Assets | ₹1,87,615.74 Cr | ₹1,78,285.82 Cr | +5.2% |
| Solvency Ratio | 3.70 | 3.25 | Strong |
| Net Worth (ex-FV) | ₹43,106.52 Cr | ₹37,581.78 Cr | +14.7% |
| Combined Ratio | 108.81% | 111.82% | Improved |
| Adjusted Combined Ratio | 85.79% | 86.24% | Improved |
📈 Q4 FY25 Highlights
| Metric | Q4 FY25 | Q4 FY24 | YoY Change |
|---|---|---|---|
| Gross Premium | ₹10,367.08 Cr | ₹8,723.65 Cr | +18.8% |
| Net Premium | ₹9,420.91 Cr | ₹7,904.46 Cr | +19.2% |
| PAT | ₹2,182.88 Cr | ₹2,642.47 Cr | -17.4% |
| Underwriting Loss | ₹-392.26 Cr | ₹+570.06 Cr | Swing |
Q4 profit fell YoY due to exchange gains falling and higher claim provisioning.
📦 Premium Mix
| Segment | FY25 Premium | Growth YoY |
|---|---|---|
| 🔥 Fire | ₹13,719 Cr | +7.4% |
| 🚑 Health | ₹9,527 Cr | +66.3% |
| 🚘 Motor | ₹6,355 Cr | -10.6% |
| 🌾 Agriculture | ₹3,263 Cr | -11.5% |
| ⚓ Marine | ₹1,079 Cr | -28.4% |
| 💖 Life | ₹1,866 Cr | +15.3% |
Health is GIC Re’s new flex. Motor and Agri – the traditional loss makers – are being cut back.
🌍 Domestic vs International
| Region | FY25 Premium | Growth | Incurred Claims | Combined Ratio |
|---|---|---|---|---|
| 🇮🇳 Domestic | ₹30,662 Cr | +18.8% | ₹22,239 Cr | 104.2% |
| 🌐 International | ₹10,491 Cr | -7.8% | ₹9,714 Cr | 121.4% |
Rebalancing towards domestic risks is intentional. International combined ratio of 121.4% is still burning cash faster than a wedding in Dubai.
🧾 Balance Sheet (Consolidated)
| Metric | FY25 | FY24 |
|---|---|---|
| Total Assets | ₹3,66,276 Cr | ₹3,46,090 Cr |
| Net Worth (ex FV) | ₹46,961 Cr | ₹40,835 Cr |
| PAT (Consolidated) | ₹7,431 Cr | ₹6,686 Cr |
| P/E (on cons PAT) | ~7.2x | Dirt Cheap |
This is literally what investors dream of: ₹419 stock price and ₹58 EPS.
📉 Valuation Check (EduFair Value)
- EPS TTM (Standalone): ₹48.45
- CMP: ₹419.10
- P/E: 8.6x
- EduFair P/E (Insurance avg): 15x
- EduFair Value: ₹727
🚨 Undervalued by ~73% on conservative metrics. And yes, it’s profitable unlike many fintech “insurers.”
📢 EduInvesting Take
“They insure the insurers, and yet they’re not insured against investor boredom.”
- Strong cash flows.
- Improved solvency.
- Underwriting losses narrowing.
- Rock-solid investment book.
- Still trading like a PSU stuck in 2017.
GIC Re is the HDFC Bank of reinsurers with the valuation of IRCTC post-correction. But unless the market values predictability, it may remain stuck in the ₹400s.
⚠️ Risks & Red Flags
- High exposure to health and agri (claim heavy)
- Losses in international underwriting
- Motor and marine books continue to drag
- Market treats all PSUs like they’re going extinct
- No dividend announced yet (as of filing)
🏷️ Tags:
GIC Re FY25 Results, GICRE Q4 Earnings, Reinsurance stocks India, PSU insurance, undervalued insurance stock, health insurance, premium mix, solvency ratio, IRDAI, LIC peer, EduInvesting
