General Insurance Corporation of India's long-pursued 50-50 domestic-international split is now 'absolutely a long-term goal', chairman Hitesh Rameshchandra Joshi told analysts on the state-owned reinsurer's first quarter earnings call. The corporation has reset its working target to 60-40, with Joshi acknowledging that the domestic market continues to outgrow global markets, making the 50-50 target 'a tough shot'. International business accounted for 14% of gross premium in the June quarter, down from 25% in FY26. The company is now targeting combined ratio targets of 103 for domestic book and 95 for foreign book, with management describing these as directional rather than rigid targets while prioritizing profitability over growth. According to the latest presentation, the company is 'fairly close to 103' for the domestic book, while the 95 mark for the foreign book would likely take two to three years to achieve.
When asked about a 6% decline in the foreign book, chief underwriting officer Sanjay Mukherjee attributed it to a portfolio rethink, adding that GIC Re had taken hard decisions in motor, streamlined the aviation book, and scrutinised overseas cargo. The company's overseas portfolio posted a 95% combined ratio in the quarter, marking its first underwriting profit in years. Chief Underwriting Officer Sanjay Mokashi confirmed that the foreign portfolio is being reviewed line by line, focusing on specific areas that have not produced desired results in the past. An analyst asked whether GIC Re could return to the nearly ₹18,000 crore of foreign premium it had generated at one time, Joshi said it may take three to four years rather than two because of the softening reinsurance market. 'Maybe not in a couple of years, because of the significant softening trends, the same exposure is coming at a lesser premium. But maybe not in two years, maybe three or four years,' he explained. The foreign book still needs more time, but the quarter showed clear progress with the overseas combined ratio improving sharply.
The corporation reported profit after tax of ₹1,922 crore on gross premium of ₹13,475 crore for the quarter. According to the latest presentation, gross premium income rose to ₹13,475.36 crore from ₹12,388.01 crore a year earlier, with domestic premium growth at 12.3% led by non-property lines such as health. The incurred claim ratio improved to 85.04% from 90.42% a year earlier, helped by benign catastrophe experience and tighter underwriting. The combined ratio improved to 104.88% from 106.94% a year earlier, showing better underwriting discipline. The domestic combined ratio stood at 107% for the quarter against 102% in FY26, while the international combined ratio was 95% against 120%. Profit before tax reached ₹2,490.25 crore, while investment income was ₹3,265.51 crore, down 1.5% year over year. Solvency ratio improved to 4.32 from 3.85 a year earlier, giving the company a strong capital buffer.
On the credit rating front, which sits at A- (Excellent) from AM Best, Joshi declined to commit to a timeline for an upgrade, citing the business model, global softening and the coming shift to International Financial Reporting Standards (IFRS) and risk-based capital. As reported by Investing.com, he said it was 'not really possible to give any timeline', though 'if things go all right' one could expect it in something like four to five years. The domestic book is also being reshaped, with obligatory cessions falling to 33% of the domestic book in the quarter from 42% in FY26. Management emphasized that the ratio may decline gradually, since 'we don't want to grow at the cost of profitability'. The company is targeting about 10% overall growth, with more growth expected in the foreign portfolio than in the domestic book.
Joshi confirmed that the Insurance Regulatory and Development Authority of India issued a directive on 22 July flagging rates being quoted in the property segment on the direct side. According to Investing.com, he described the directive as 'only a guidance', with the impact likely to show over the next two to three quarters. Management expects regulatory guidance on discounting in the domestic property market to influence behavior over the next two to three quarters. The company also pointed to regulatory changes, with Joshi noting that 'we can't drive the decision-making beyond a point' regarding certain pricing decisions.
