GIC Re: Dominating the Indian Reinsurance Market with 51% Share

Reinsurance plays a critical role in the insurance ecosystem by enabling effective risk transfer and supporting the stability and growth of the insurance industry. In a typical reinsurance framework, policyholders transfer individual risks – such as motor, property, life, health, business, and catastrophe risks – to direct insurers in exchange for premiums. Direct insurers, in turn, pass on a portion of these risks and premiums to reinsurers to achieve a balanced and diversified insurance portfolio.

Reinsurers absorb actuarial and catastrophic risks from insurers, helping them limit exposure to large or unpredictable losses and manage capital more efficiently. Reinsurers may further transfer part of these risks to retrocessionaires, thereby spreading risk even more widely across the global reinsurance market.

This multi-layered structure ensures that losses and benefit payments are shared across insurers, reinsurers, and retrocessionaires, reducing concentration risk at any single level. Reinsurance enables insurers to write larger volumes of business, stabilise financial performance, and protect their balance sheets against major loss events. It also guards against anti-selection and enhances the resilience of the insurance sector. Overall, the reinsurance industry serves as a foundational mechanism for economic growth by strengthening insurers’ capacity, reducing volatility, and providing protection against catastrophic and systemic risks.

India’s reinsurance industry operates under a structured framework comprising Indian reinsurers, foreign reinsurance branches (FRBs), and cross-border reinsurers (CBRs). The industry is positioned for long-term growth, supported by the country’s significantly under-penetrated insurance market. As of FY24, India’s insurance penetration remains well below global and developed-market levels, particularly in non-life insurance, highlighting substantial headroom for expansion. The general insurance segment has demonstrated steady momentum, with gross written premiums growing at a compounded rate of around 12 percent since FY22, rising from ~Rs. 2.21 lakh crore in FY22 to about Rs. 3.1 lakh crore in FY25. Alongside this growth, the industry’s retention ratio has steadily improved, increasing from 71 percent in FY21 to nearly 75 percent in FY25, reflecting stronger balance sheets and higher risk retention by insurers.

Looking ahead, India’s general insurance market is projected to grow at a CAGR of about 9.9 percent during 2024-2028, creating a significantly larger opportunity for reinsurers, while reinsurance premiums in India are expected to reach nearly Rs. 99,275 crore by 2025-26. Further, the global reinsurance industry is expected to witness steady growth in gross written premiums over the coming decade, supported by improving pricing conditions and rising demand for risk coverage. Between 2021 and 2031, premium growth is projected to remain strong across regions, with Asia (excluding Japan) leading the trend, reflecting robust expansion in both life and property & casualty segments. The global market is projected to grow from ~$642 billion in 2023 to around $2,001 billion by 2034, implying a robust CAGR of about 11 percent.

In this industry, General Insurance Corporation of India (GIC Re) is the only Indian reinsurer registered with the regulatory authority and listed on Indian stock exchanges. In FY24, GIC Re reported gross reinsurance premium income of Rs. 25,804 crore from Indian business and provides support to both domestic insurers and foreign reinsurers. With a market cap of Rs. 64,123.3 crores, shares of General Insurance Corporation of India moved up by nearly 1 percent on BSE to close in the green at Rs. 365.5 on Friday.

General Insurance Corporation of India – GIC was formed under GIBNA of 1972 for the purpose of superintending, controlling, and carrying on the business of General Insurance in India. It is the largest Reinsurer in the domestic market in India, and an effective reinsurance partner for the Afro-Asian region, internationally. It is a Leading Global Reinsurance company sourcing business from 137 countries, and the company holds ~51 percent (FY24) India Market Share. Reinsurance support to 59 direct general and life insurance companies in India, making it a repository of knowledge and data about the sector. Key segments targeted by GIC Re are – Property, Agriculture/Crop, Liability, Motor and Health.

As of 30th September 2025, the total investment portfolio stood at Rs. 1,12,080 crore on a book value basis and Rs. 1,54,120 crore on a market value basis. By book value, fixed income instruments dominate the portfolio, accounting for 73.81 percent or Rs. 82,722 crore, followed by equity investments of 16.79 percent or Rs. 18,819 crore, money market instruments of Rs. 10,259 crore, and a small allocation to other assets. On a market value basis, equity exposure increases to 39.45 percent or Rs. 60,799 crore, while fixed income constitutes 53.66 percent, reflecting market appreciation in equity holdings. The asset quality of GIC Re’s debt portfolio remains strong, with 99.16 percent invested in high-credit-quality sovereign and AAA-rated instruments, significantly reducing credit risk. The company continues to focus on high-quality bonds to preserve capital and minimise risk. The debt portfolio also benefits from a well-structured maturity profile, with 48.96 percent of instruments maturing beyond five years, 38.32 percent maturing within 1-5 years, and 12.72 percent within a 1-year period, supporting effective asset-liability management.

The company’s strong international presence, sourcing business from around 137 countries, is further strengthened through its association with Lloyd’s syndicates, enhancing its underwriting expertise, risk assessment capabilities, and global reach. GIC Re also enjoys a dominant position in the Indian market, supported by obligatory cessions and order-of-preference arrangements in non-life insurance, long-standing relationships across the industry, and a low management expense ratio of around 0.9 percent.

In Q2 FY26, GIC experienced a revenue from operations of Rs. 12,755 crores, representing a decrease of around 13 percent QoQ but a growth of nearly 3 percent YoY. Meanwhile, its net profit stood at Rs. 2,874 crores, indicating a rise of around 13 percent QoQ and 55 percent YoY. Between FY22 and FY25, GIC’s revenue grew at a 3-year CAGR of nearly 0.44 percent, while net profit surged at a CAGR of about 46 percent. In H1 FY26, GIC’s gross premium portfolio was well diversified across business segments. Fire insurance remained the largest contributor, accounting for about 31 percent of total gross premiums, followed by health insurance at 21 percent and motor insurance at 16 percent. Agriculture insurance contributed around 11 percent to the premium mix, while life insurance accounted for ~5 percent. Marine insurance (cargo and hull) formed a smaller share at about 3 percent, and other lines of business together contributed nearly 14 percent of the gross premium during the period.