GIC Posts 54% Jump in July-September Profit on Higher Premium, Lower Claims

General Insurance Corp. of India (GIC Re) reported a 54% year-on-year surge in net profit to ₹28.67 billion for the September quarter, driven by higher gross premiums and a sharp fall in incurred claims. Sequentially, profit jumped 64%.

Gross premium rose 14% on year to ₹96.02 billion, though it declined from ₹123.88 billion in the June quarter. Total income increased to ₹118.31 billion from ₹111.80 billion a year earlier.

Incurred claims dropped to ₹72.74 billion in the reporting quarter, from ₹82.85 billion a year ago and ₹100.26 billion in the preceding quarter. As a percentage of earned premium, incurred claims fell to 81.5%, compared with 90.4% in the June quarter and 93.6% a year earlier.

A profit of ₹3.63 billion on the exchange, against a loss of ₹1.09 billion a year ago, and narrower underwriting losses of ₹3.88 billion versus ₹10.88 billion last year also lifted the bottom line.

Commission and brokerage expenses rose nearly 50% on year to ₹22.36 billion, while other operating costs jumped almost fourfold to ₹1.13 billion.

For April–September, net profit rose to ₹46.19 billion from ₹28.97 billion a year earlier, and total income grew to ₹251.83 billion from ₹231.44 billion.