Q1 2027 General Insurance Corp of India Earnings Call

August 17, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the General Insurance Corporation of India Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day and welcome to General Insurance Corporation of India Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Nikita Atri from EY. Thank you. Over to you, Ms. Atri.

Operator: Ladies and gentlemen, good day and welcome to General Insurance Corporation of India Q1 FY 2027 Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Nikita Atri from EY. Thank you. Over to you, Ms. Atri.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Ms. Nikita Atri from EY. Thank you, and over to you, Ms. Atri.

Speaker #2: Oh, thank you, Ranju. Good morning to all the participants on the call, and thank you for joining the Q1 FY27 earnings call for General Insurance Corporation of India.

Nikita Atri: Thank you, Ranju. Good morning to all the participants on the call, and thank you for joining Q1 FY27 earnings call for General Insurance Corporation of India. Please note that we have mailed out the press release and presentation to everyone, and now you can see the results on our website, and it has been uploaded on the stock exchange as well. In case you have not received the same, you can write to us, and we will be happy to send it over to you. Before we proceed with the call, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties, and other factors. It must be viewed in conjunction with our businesses that could cause future results, performances, or achievement to differ significantly from what is expressed or implied by such forward-looking statements.

Nikita Atri: Thank you, Ranju. Good morning to all the participants on the call, and thank you for joining Q1 FY 2027 Earnings call for General Insurance Corporation of India. Please note that we have mailed out the press release and presentation to everyone, and now you can see the results on our website, and it has been uploaded on the stock exchange as well. In case you have not received the same, you can write to us, and we will be happy to send it over to you. Before we proceed with the call, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties, and other factors.

Speaker #2: Please note that we have mailed out the press release and presentation to everyone, and now you can see the results on our website. They have also been uploaded on the stock exchange as well.

Speaker #2: In case you have not received the same, you can write to us, and we will be happy to send it over to you. Before we proceed with the call, let me remind you that the discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties, and other factors.

Speaker #2: It must be viewed in conjunction with our businesses that could cause future results, trends, performances, or achievements to differ significantly from what is expressed or implied by such forward-looking statements.

Nikita Atri: It must be viewed in conjunction with our businesses that could cause future results, performances, or achievement to differ significantly from what is expressed or implied by such forward-looking statements. To take us through the results for the quarter and answer our questions, we have with us Mr. Hitesh Joshi, Chairman and Managing Director, and other top members of the management at GIC. We will be starting the call with a brief overview of the quarter gone by, which will then be followed by the Q&A session. With that said, I will now hand over the call to Mr. Joshi. Over to you, sir.

Speaker #2: To take us through the results for the quarter and answer our questions, we have with us Mr. Hitesh Joshi, Chairman and Managing Director, and other top members of the management at GIC.

Nikita Atri: To take us through the results for the quarter and answer our questions, we have with us Mr. Hitesh Joshi, Chairman and Managing Director, and other top members of the management at GIC. We will be starting the call with a brief overview of the quarter gone by, which will then be followed by the Q&A session. With that said, I will now hand over the call to Mr. Joshi. Over to you, sir.

Speaker #2: We will be starting with the we will be starting the call with a brief overview of the quarter gone by, which will then be followed by the Q&A session.

Speaker #2: With that said, I'll now hand over the call to Mr. Joshi. Over to you, sir.

Speaker #3: Good morning, ladies and gentlemen, and thank you for joining us for GIC's earnings call covering the first quarter, FY27. As we begin FY27, the global reinsurance industry continues to demonstrate resilience, supported by strong capitalization and sustained demand for risk transfer solutions. While abundant market capacity has resulted in increased competition across certain segments, particularly within the property catastrophe reinsurance segment, underlying industry fundamentals remain supportive and continue to provide opportunities for profitable growth.

Hitesh Joshi: Good morning, ladies and gentlemen, and thank you for joining us for GIC's earnings call covering the first quarter of FY27. As we begin FY27, the global reinsurance industry continues to demonstrate resilience supported by strong capitalization and sustained demand for risk transfer solutions. While abundant market capacity has resulted in increased competition across certain segments, particularly within property catastrophe reinsurance segment, underlying industry fundamentals remain supportive and continue to provide opportunities for profitable growth.

Hitesh Joshi: Good morning, ladies and gentlemen, and thank you for joining us for GIC's earnings call covering the first quarter of FY 2027. As we begin FY 2027, the global reinsurance industry continues to demonstrate resilience supported by strong capitalization and sustained demand for risk transfer solutions. While abundant market capacity has resulted in increased competition across certain segments, particularly within property catastrophe reinsurance segment, underlying industry fundamentals remain supportive and continue to provide opportunities for profitable growth.

Speaker #3: In these environments, portfolio quality and prudent risk allocation remain key determinants of performance. Reinsurers continue to focus on maintaining risk-adjusted returns through selective underwriting and active portfolio management, while investment income remains a meaningful contributor to overall profitability.

Hitesh Joshi: In this environment, portfolio quality and prudent risk allocation remain key determinants of performance. Reinsurers continue to focus on maintaining risk-adjusted returns through selective underwriting and active portfolio management, while investment income remains a meaningful contributor to overall profitability. Against this backdrop, GIC remains well-positioned to navigate evolving market conditions, supported by its diversified business profile and strong financial foundation. We continue to focus on delivering profitable growth while creating long-term value for our stakeholders.

Speaker #3: Against this backdrop, GIC remains well-positioned to navigate evolving market conditions, supported by its diversified business profile and strong financial foundation. We continue to focus on delivering profitable growth while creating long-term value for our stakeholders.

Speaker #3: We now look at some of the key highlights of our financial performance. Gross premium income for Q1 FY27 stood at ₹13,475.36 crore, compared to ₹12,388.01 crore in the corresponding period of the previous year.

Hitesh Joshi: We now look at some of the key highlights of our financial performance. Gross premium income for Q1 FY27 stood at INR 13,475.36 crore compared to INR 12,388.01 crore in the corresponding period of the previous year. Investment income for the quarter stood at INR 3,265.51 crore vis-à-vis INR 3,313.74 crore in the corresponding period last year. Income claim ratio for the quarter was 85.04 as against 90.42 in the corresponding quarter of the previous year. Combined ratio for the quarter stood at 104.88% compared to 106.94% in the corresponding period last year. Profit before tax stood at INR 2,490.25 crore for Q1 FY27. Profit after tax was INR 1,922.04 crore for the quarter.

Hitesh Joshi: We now look at some of the key highlights of our financial performance. Gross premium income for Q1 FY 2027 stood at INR 13,475.36 crore compared to INR 12,388.01 crore in the corresponding period of the previous year. Investment income for the quarter stood at INR 3,265.51 crore vis-à-vis INR 3,313.74 crore in the corresponding period last year. Income claim ratio for the quarter was 85.04 as against 90.42 in the corresponding quarter of the previous year. Combined ratio for the quarter stood at 104.88% compared to 106.94% in the corresponding period last year. Profit before tax stood at INR 2,490.25 crore for Q1 FY 2027. Profit after tax was INR 1,922.04 crore for the quarter.

Speaker #3: Investment income for the quarter stood at ₹3,265.51 crore, vis-à-vis ₹3,313.74 crore in the corresponding period last year. The income claim ratio for the quarter was 85.04%, as against 90.42% in the corresponding quarter of the previous year.

Speaker #3: Combined ratio for the quarter stood at 104.88 percent, compared to 106.94 percent in the corresponding period last year. Profit before tax stood at ₹2,490.25 crore for Q1 FY27.

Speaker #3: Profit after tax was INR 1,922.04 crore for the quarter. Solvency ratio improved to 4.32 as on 30th June 2026, as compared to 3.85 as on 30th June 2025.

Hitesh Joshi: Solvency ratio improved to 4.32 as on 30 June 2026 as compared to 3.85 as on 30 June 2025. The quarter delivered a marked improvement across key underwriting metrics. Lower claims experience and an improved combined ratio contributed to a meaningful reduction in underwriting losses. The improvement in operating performance reflects the continued benefits of portfolio actions undertaken over recent years and demonstrates the resilience of our business across market cycles.

Speaker #3: The quarter delivered a marked improvement across key underwriting metrics. Lower claims experience and an improved combined ratio contributed to a meaningful reduction in underwriting losses.

Speaker #3: The improvement in operating performance reflects the continued benefits of portfolio actions undertaken over recent years and demonstrates the resilience of our business across market cycles.

Speaker #3: As we progressed through FY27, our priorities remained centered on maintaining portfolio quality, prudent deployment of capital, and disciplined risk selection. While competitive intensity has increased across certain markets, we remain focused on opportunities that meet our return expectations and support sustainable value creation over the long term.

Hitesh Joshi: As we progress through FY27, our priorities remain centered on maintaining portfolio quality, prudent deployment of capital, and disciplined risk selection. While competitive intensity has increased across certain markets, we remain focused on opportunities that meet our return expectations and support sustainable value creation over the long term. With a healthy solvency position, diversified portfolio, and strong financial foundation, we believe GIC is well-positioned to deliver consistent performance while continuing to support the risk protection requirements of clients across domestic and international markets. Thank you. With that, we now open the floor for questions and answers.

Hitesh Joshi: As we progress through FY 2027, our priorities remain centered on maintaining portfolio quality, prudent deployment of capital, and disciplined risk selection. While competitive intensity has increased across certain markets, we remain focused on opportunities that meet our return expectations and support sustainable value creation over the long term. With a healthy solvency position, diversified portfolio, and strong financial foundation, we believe GIC is well-positioned to deliver consistent performance while continuing to support the risk protection requirements of clients across domestic and international markets. Thank you. With that, we now open the floor for questions and answers.

Speaker #3: With a healthy solvency position, diversified portfolio, and strong financial foundation, we believe GIC is well positioned to deliver consistent performance while continuing to support the risk protection requirements of clients across domestic and international markets.

Speaker #3: Thank you. With that, we now open the floor for questions and answers.

Speaker #1: Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on your touch-tone telephone.

Operator: Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Avinash Singh with Emkay Global. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Avinash Singh with NK Global.

Speaker #1: Please go ahead.

Speaker #4: Hi. Good morning, sir. Thanks for the opportunity. One question on, you know, domestic Indian reinsurance market. So what we have seen, I mean, on the fire or rather over commercial side, there have been a in the primary market, there have been a steep price decline.

Avinash Singh: Hi. Good morning, sir. Thanks for the opportunity. One question on domestic Indian reinsurance market. What we have seen on the fire or rather work commercial side, in the primary market, there has been a steep price decline. The cause of this, of course, is the reinsurance support capacity and the kind of prices available are far, far lower. Can you comment on the prevailing market condition if we were to segregate the reinsurance players, I will say the GIC, and then you have many of the foreign global insurer branches, and third will be maybe offshore and the new shops in Gift City. Which of these players have been very aggressive that has led to this situation?

Speaker #4: How the cause of this, of course, is a reinsurance support capacity and the kind of a prices available are far, far lower. Now, can you comment on the, you know, the prevailing market condition if we were to segregate the reinsurance players or say the, like, GIC and then you have many of the foreign global insurance branches and third will maybe offshore and the new shops in gift city.

Speaker #4: So which of these players have been very, very aggressive that has led to this situation? And secondly on that, if, you know, the experience in terms of, you know, the natural or man-made catastrophic continues to be benign, that has been the case for the last one, two years that has led to this pricing.

Avinash Singh: Secondly on that, if the experience in terms of the natural or manmade catastrophic continues to be benign, that has been the case for last one, two years that has led to this pricing, do you expect this pricing condition to further deteriorate? Second, if you can provide some updates, a rough assessment, are the losses from recent flooding activity, particularly in the state like Gujarat and all, that is going to be material to cause losses to some of the reinsurers. What will be your assessment of this recent flood-related losses in some of the states? Thank you.

Speaker #4: Do you expect this pricing condition to further deteriorate? And second, if you can provide some updates I mean, rough assessment kind of, you know, are the losses from the recent flooding activity particularly in the state like Gujarat and all that is going to be material to cause a, you know, kind of a, you know, losses to some of the reinsurers or so what would be your assessment of this recent flood-related losses in some of the states?

Speaker #4: Thank you.

Speaker #3: So, starting with your market segmentation in terms of, say, Indian reinsurers, the foreign reinsurer branches, maybe the GIFT City players, and the cross-border reinsurers—given that the global capacity is ample and fairly surplus, the aggressive stance of the reinsurer is all around.

Hitesh Joshi: Starting with your market segmentation in terms of, say, Indian reinsurers, the foreign reinsurer branches, maybe the Gift City players and the cross-border reinsurers. Given that the global capacity is ample and fairly surplus, the aggressive stance of the reinsurer is all around. There may be some nuance to a particular reinsurer's approach, but overall, almost all players have displayed competitive behavior. That is the first question you put. Second question is that what we expect in terms of the price deterioration or competitiveness. We believe that to the extent the players in the Gift City will try to scale up their operations, their competitive behavior may continue. But as you also pointed out that there are flood losses.

Speaker #3: There may be some nuance to a particular reinsurer's approach, but overall, almost all players have displayed competitive behavior. So that is the first question you put.

Speaker #3: The second question is about what we expect in terms of price deterioration or competitiveness. We believe that, to the extent the players in GIFT City try to scale up their operations, their competitive behavior may continue.

Speaker #3: But as you also pointed out, there are flood losses—we have to see how soon the figures come in, how the claims develop, and what will be the experience of the players all around.

Hitesh Joshi: We have to see how soon the figures come in, how the claims develop, and what will be the experience of the players all around, and whether they react to the claims experience, whether the claims quantum is enough to influence their behavior. I think these are the levers which we need to watch before we conclude anything. Coming to the third point regarding the quantum of flood losses, as we usually tell you that it takes a little bit of a time before the figures travel to us. In terms of our experience, it has been our stance that whatever might be the market losses, our losses from CAT events tend to be around 30% to 40%. So if there is any estimate available with anyone for any flood event, we could be having a participation of 30% to 40%. Avinash, does it help?

Speaker #3: And whether they react to the claims experience—whether the claims quantum is enough to influence their behavior—I think these are the levers which we need to watch before we conclude anything.

Speaker #3: Coming to the third point regarding the quantum of flood losses, as we usually tell you, it takes a bit of time before the figures reach us.

Speaker #3: In terms of our experience, it has been our stance that, whatever might be the market losses, our losses from cat events tend to be around 30 to 40 percent.

Speaker #3: So, if there is any estimate available with anyone for any flood event, we could be having a participation of 30% to 40%. Avinash, does it help?

Speaker #4: Yeah, yeah, yeah. Thanks. One follow-up, if I may. Now, if I see in this quarter, you have kind of grown and retained the life reinsurance piece meaningfully.

Avinash Singh: Yeah. Thanks. One follow-up, if I may. Now, if I see in this quarter, you have kind of grown and retained life reinsurance piece meaningfully. Now, historically, you have been typically more of a general insurer side insurer than life. But last 5, 6 years, you have been growing in life as well. But overall experience on the life side including that unfortunate COVID year, COVID Delta wave. The life side, you have not been making much profit. Now, in this backdrop, what has led to this growing so much in life? Has the pricing environment been supportive or is it that, okay, in order to gain market share, you have gone a bit aggressive here. So if you can help us understand your strategy around life.

Speaker #4: Now, historically, I mean, you have typically been more on the general insurer side than life. But in the last five or six years, you have been growing in life as well.

Speaker #4: But overall, the experience on the life side, including that unfortunate COVID year, the COVID Delta wave, on the life side, you have not been making much of a profit.

Speaker #4: Now, in this backdrop, what has led to this kind of, you know, growing so much in life? Has the pricing environment been supportive, or is it that, in order to gain market share, you have gone a bit aggressive here?

Speaker #4: So, if you can help us understand your strategy around life.

Speaker #3: I agree with you that for us, life is a focus area, and we'll continue to grow. Coming to the performance and results, I think it is probably too short a period to judge this portfolio.

Hitesh Joshi: I agree with you that for us, life is a focus area and will continue to grow. Coming to the performance and results, I think it is probably too short a period to judge on this portfolio. We have during various links call and also other interactions have indicated the reasons, particularly the result strengthening carried out. So I would suggest that life portfolio needs to be watched over a period of couple of years, because ultimately it continues to remain competitive and one has to watch a particular segment over a cycle rather than a couple of years.

Speaker #3: We have, during various links call and also other interactions, indicated the reasons, particularly the, say, reserve strengthening carried out. So I would suggest that life portfolio needs to be watched over a period of a couple of years because ultimately it remains—it continues to remain—competitive, and one has to watch a particular segment over a cycle rather than a couple of years.

Speaker #4: Okay, sir. Thank you, thank you. A reminder to all participants: please press star and one to ask a question. Next question comes from the line of Sanket Koda with Evan Deshpake.

Avinash Singh: Okay, sir. Thank you.

Operator: Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Sanketh Godha with Avinash Pathak. Please go ahead.

Operator: Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Sanketh Godha with Avendus Spark. Please go ahead.

Speaker #4: Please go ahead.

Speaker #5: Yeah, thank you. Thank you for the opportunity, sir. My first question is on overseas combined issues. Probably, from what I have seen for many years, for the first time you have reported an underwriting profit with a 95 combined.

Sanketh Godha: Thank you. Thank you for the opportunity, sir. My first question is on overseas combined ratios. I have seen for many years, for the first time, you reported an underwriting profit with a 95 combined. I see bulk of the improvement happened in entire segment, which is a dominant piece in your overseas business. Just wanted to understand what materially changed in overseas business, which led to this improvement in the overseas segment, whether this is structural, transient. Given you even alluded to the concept pricing competition or the market is still soft and the international markets will be improved numbers. Just wanted to understand color here, sir. Hello?

Speaker #5: And I see bulk of the increment happened in in prior segment, which is a dominant piece in your overseas business. So, so just wanted to understand what materially changed in, in overseas business which led to led to this improvement in, in, in, in the in, in, in the overseas segment.

Speaker #5: Whether this is structural, transient, and given—even you alluded to the point that pricing competition, or the market, is still soft in the transfer market, it could still be improved, the numbers.

Speaker #5: So, just wanted to understand color here, sir. Hello?

Speaker #3: Yes.

Speaker #4: Hello? This is Sanjay Mokashi, Chief Underwriting Officer.

Sanjay Mokashi: This is Sanjay Mokashi, Chief Underwriting Officer.

Sanjay Mokashi: Hello. This is Sanjay Mokashi, Chief Underwriting Officer.

Speaker #5: Yes, sir.

Sanketh Godha: Yes, sir.

Speaker #4: Yes, on foreign portfolio, our focus has been specific, more because it has not produced desired results in the past. So we are looking at our portfolio class by class.

Sanjay Mokashi: Yes, on foreign portfolio, our focus has been specific, more because it has not produced desired results in the past. So we are looking at our portfolio class by class. We are also looking at our underwriting guidelines, our underwriting approach, if anything needs to be changed in terms of our past experience. But having said that, I would add that quarter results cannot be an indication of the entire efforts that we are putting in improvement of the portfolio. Let us wait.

Speaker #4: We are also looking at our underwriting guidelines, our underwriting approach, if anything needs to be changed in terms of our past experience. But having said that, I would add that...

Speaker #4: Quarter result may not be an indication of the entire efforts that we are putting in improvement of the portfolio. Let us wait. Ladies and gentlemen, the management line has been disconnected.

Operator: Ladies and gentlemen, the management line has been disconnected. Please be on hold while we quickly get them reconnected. Thank you. Ladies and gentlemen, the management line has been reconnected. Please go ahead.

Speaker #4: Please be on hold while we quickly get them reconnected. Thank you. Ladies and gentlemen, the management line has been reconnected. Please go ahead.

Speaker #3: Yeah, sorry for that interruption. I'm not sure where we lost the line, but just to quickly recap—as I mentioned, our focus has been on foreign portfolio.

Sanjay Mokashi: Yeah. Sorry for that interruption. I am not sure where we lost the line. But just to recap quickly, as I mentioned that our focus has been on foreign portfolio, which has not performed to our expectation, and we are looking at every portfolio carefully and taking necessary action. Having said that, I would suggest that one quarter result may not give an entire picture of what has changed in the portfolio. There is some amount of seasonality in foreign portfolio, and I would suggest that let us wait for further quarters to develop, to look at exactly how the portfolio is developing in terms of our expectation.

Speaker #3: Which has not performed to our expectation, and we are looking at every portfolio carefully and taking necessary action. Having said that, I would suggest that one quarter's result may not give an entire picture of what has changed in the portfolio.

Speaker #3: There is some amount of seasonality in foreign portfolio. And I would suggest that we wait for further quarters to develop, to look at exactly how the portfolio is developing in terms of our expectation.

Speaker #5: Understood, sir. Yes, sir. But if just a follow-up, sir, given, given we were at 120 percentage in last year in, in foreign portfolio and given we started at minus 95, is it fair to say that there could be at least 10, 15 percentage improvement in the combined ratio or even, even first quarter is not a true representative compared to what we experienced last year?

Sanketh Godha: Understood, sir. Yes, sir. Just a follow-up, sir. Given we were at 120% in last year in foreign portfolio, given we started at -95, is it fair to say that there could be at least 10%, 15% improvement in the combined ratio, even Q1 is not a true representative compared to what we experienced last year?

Sanjay Mokashi: Although we have taken measures on both property and motor, which are our significant portfolios, even aviation, although it is not a significant portion of our foreign portfolio, we are looking at it very closely and taking necessary action in terms of how we can improve the quality of the portfolio. I would still say that Q1 may also involve some accounting entries as well that may not be exactly resulting in the outcome that we expect. We expect the foreign portfolio to increase significantly. At this stage, we would refrain from putting a number to it. Although over three to five years, we have set goals for ourselves.

Speaker #3: Although we have taken measures on both property and motor, which are our significant portfolios, even aviation, although it is not a significant portion of our foreign portfolio, we are looking at it very closely and taking necessary action in terms of in terms of how we can improve the quality of the of the portfolio.

Speaker #3: I would still say that the first quarter may may also involve some accounting entries as well that that may not be exactly resulting in the in the in the outcome that we we expect.

Speaker #3: We expect the foreign portfolio to increase significantly. At this stage, we would refrain from putting a number to it. Although, over three to five years, we have set goals for ourselves.

Speaker #5: Understood, sir. Sir, but but given the prudent probably is is there largely the reason why the overseas business did not grow in the current year because there was an expectation that the rate rating upgrade.

Sanketh Godha: Understood, sir. Sir, given the prudence, probably is largely the reason why overseas business did not grow in the current year because there was an expectation that with rating upgrade, probably your foreign business will do well in the current year. But in the quarter, we had declined by 6%. Anything to read there?

Speaker #5: Probably your foreign business will do well in the current year. But in the quarter, we have declined by 6 percent. So, is there anything to read there?

Speaker #3: Yes, it is a reflection of how we are looking at our portfolio. I had mentioned this in the previous quarter results also, that particularly in motor, we have taken corrective measures in respect of contracts which were not developing in the desired way.

Sanjay Mokashi: Yes, it is a reflection of how we are looking at our portfolio. I had mentioned this in the previous quarter results also, that particularly in motor, we have taken corrective measures in respect of contracts which were not developing in the desired way. We have taken some hard decision in motor. We are also streamlining our aviation portfolio. We are having a close look at our overseas cargo portfolio. Having said that, property having the maximum share in the portfolio, that is also a focus area. Yes, we will improve our portfolio, but I would suggest that we wait for further quarters.

Speaker #3: We have taken some hard decisions in motor. We are also streamlining our aviation portfolio. We are having a close look at our overseas cargo portfolio.

Speaker #3: Having said that, property being the maximum having the maximum share in the portfolio, that is that is also a focus focus area. So yes, we will we will improve our portfolio, but I would suggest that we wait for further quarters.

Speaker #5: Understood, sir. And and sir, I mean just want to understand that your domestic I mean clearly there is the softness in the fire market.

Sanketh Godha: Understood, sir. I just want to understand that your domestic, clearly there is softness in the fire market. I am assuming that it would have declined for us too in domestic business. But we still reported 12.3% growth for the quarter, and it seems to be driven by largely health. When I see the combined ratio also, to some extent, it seems to have deteriorated either because of motor or health in the domestic space. Just wanted to understand your strategy, whether health, what exactly businesses you are writing, whether you think profitability will be there in this line of business. Consequently, if you can even give me a color, what kind of combined would be there in the domestic business from a full year perspective, given it has deteriorated in quarter on year on year basis, sorry.

Speaker #5: I'm hoping—I'm assuming—that it would have declined for us too in domestic business. But we still reported 12.3% growth for the quarter, and it seems to be driven largely by health.

Speaker #5: And when I see the combined ratio also, to some extent, it seems to have deteriorated, either because of motor or health in the domestic piece.

Speaker #5: So, just wanted to understand your strategy—whether health, what exactly are the businesses you are writing, and whether you think profitability will be there in this line of business.

Speaker #5: And consequently, if you can even give me a colour, what kind of combine would be there in the domestic business from a full-year perspective, given it has deteriorated quarter on sequential?

Speaker #5: Year on year basis, sorry.

Speaker #3: Yes, you have rightly observed that health we have grown in other than property segment. Property being the the way on the direct side the the there is heavy competition in the in the property segment in other segment too there is there is there are competitive pressure but our focus has been in in growing other than property segment in in in this particular year.

Sanjay Mokashi: Yes, you have rightly observed that health, we have grown in other than property segment. Property being the way on the direct side, there is heavy competition in the property segment. In other segment too, there are competitive pressure, but our focus has been in growing other than property segment in this particular year. As far as health is concerned, our focus is more on the retail health segment rather than the corporate or group health segment, where we believe the profitability lies. The nature of health portfolio is such that there is a significant portion of obligatory there. So obligatory portion will reflect the market growth, and the non-obligatory portion gets influenced by certain major contracts. If we win those contracts, you will see spike in our health portfolio. If we don't win that contract, you might see a dip in that particular portfolio.

Speaker #3: And as far as health is concerned, our focus is more on the retail health segment rather than the corporate or group health segment, where we believe the profitability lies.

Speaker #3: The nature of the health portfolio is such that there is a significant portion of obligatory business there. So, the obligatory portion will reflect the market growth, and the non-obligatory portion gets influenced by certain major contracts. If we win those contracts, you will see a spike in our health portfolio.

Sanjay Mokashi: The nature of health portfolio is such that there is a significant portion of obligatory there. So obligatory portion will reflect the market growth, and the non-obligatory portion gets influenced by certain major contracts. If we win those contracts, you will see spike in our health portfolio. If we don't win that contract, you might see a dip in that particular portfolio. Health, we have been able to write certain contracts, the targeted contracts, which show the growth segment. As I mentioned that we have been focusing on the retail health care. In motor, yes, there has been deterioration in domestic motor portfolio. It is largely from the treaties that we have written in the past. There are competitive pressures on the motor segment, but it is developing to our expectations.

Speaker #3: And if we don't win that contract, you might see a dip in that particular portfolio. So, in health, we have been able to write certain contracts which are targeted and which show the growth segment.

Sanjay Mokashi: So health, we have been able to write certain contracts, the targeted contracts, which show the growth segment. As I mentioned that we have been focusing on the retail health care. In motor, yes, there has been deterioration in domestic motor portfolio. It is largely from the treaties that we have written in the past. There are competitive pressures on the motor segment, but it is developing to our expectations.

Speaker #3: And as I mentioned that we have been focusing on the retail health health there. In motor, yes, there has been deterioration in domestic motor it is largely from the from the treaties that we have written in the in the past the there are competitive pressures on the motor motor segment but it is developing to the extent to our expectations.

Speaker #5: Understood, sir. And and and just last two points. One one given given today morning IIT gave a a advisory to to reinsurance market that you can't give such huge discounts like like 99 percentage to the benchmark rate.

Sanketh Godha: Understood, sir. Just last two points. One, given today morning, IRDAI gave an advisory to reinsurance market that you can't give such huge discounts like 99% to the benchmark rate. Given there is an advisory from regulator in the morning in their website, is it fair to say that some sort of discipline probably in Indian domestic fire market or property market can come back a bit?

Speaker #5: So, given there is an advisory from the regulator in the morning on their website, is it fair to say that some bit of discipline—probably in the Indian domestic fire market or property market—can come back a bit?

Speaker #3: Yes, IIT has issued a directive on 22nd July as well in the property segment, where they have flagged the rates being quoted on the direct side.

Sanjay Mokashi: IRDAI has issued a directive on 22 July as well in property segment where they have flagged the rates being quoted on the direct side. We are in touch with insurance market, with the insurers. We are having conversation with them as to what measures they are taking in response to IRDAI directive. It is only a guidance, so let us see how the impact will be over next 2 to 3 quarters.

Speaker #3: We are in touch with the insurance market, with the insurers, and we are having conversations with them as to what measures they are taking in response to the IIT directive.

Speaker #3: Let it be only a guidance. So let us see how the impact will be over the next two to three quarters.

Speaker #5: Understood, sir. And lastly, you did not answer this question on domestic – we reported in the quarter ₹107.5 crore combined. How do you see the full year playing out? Do you expect it to be better than last year, or do you think it could be similar, given you have CAT events and also, motor is generally deteriorating for the industrial segment, and you have pressure in the fire segment too?

Sanketh Godha: Understood, sir. Lastly, you just did not answer this question. On domestic, we reported in Q1 1.5 combined. How do you see full year to play out? It could be better than the last year, or you think it could be similar given you have CAT events and also motor in generally deteriorating for the industry as a whole, then you have a pressure in fire segment too.

Speaker #3: The major renewals in the domestic segment are on 1st April, and we have used whatever reinsurance tools we have, whereby we support the domestic insurers as well as protect the interests of all our stakeholders.

Sanjay Mokashi: The major renewals in the domestic segment are on 1 April, and we have used whatever handles, reinsurance tools we have, whereby we support the domestic insurers as well as we protect the interest of all our stakeholders. Yes, on one hand, there are competitive pressures in the market. On the other hand, we have taken certain measures on the reinsurance side, and let us see how the results pan out.

Speaker #3: So yes, on one hand there are competitive pressures in the market. On the other hand, we have taken certain measures on the reinsurance side, and let us see how the results pan out.

Speaker #5: Understood, sir. That's it from my side. Thank you very much for your answers.

Sanketh Godha: Understood, sir. That is it from my side. Thank you very much for the answers.

Operator: Thank you. A reminder to all the participants that you may press star and 1 to ask a question. Next question comes on the line of Karthikeyan K, an individual investor. Please go ahead.

Speaker #1: Thank you. A reminder to all participants that you may press star and one to ask a question. The next question comes from the line of Karthikeyan K, an individual investor.

Speaker #1: Please go ahead.

Karthikeyan K: Hi. Thank you for the opportunity. Good morning. I have a couple of questions related to growth. What is the growth that you are expecting for the domestic and international? Considering the facts, I mean, the lot of portfolio pruning and all that you are doing. Next question is, we are continuously seeing the losses in life. When are we going to see a turnaround in that portfolio?

Speaker #2: Hi. Thank you for the opportunity. Good morning. So I have a couple of questions related to growth. I mean, what’s the growth that we are expecting for the domestic and international now, considering the fact—a lot of portfolio pruning and all that you’re doing?

Speaker #2: And next question is, like, see, we are continuously seeing losses in life. I mean, when are we going to see a turnaround in that portfolio?

Sanjay Mokashi: Hello.

Speaker #3: In terms of—yeah, Karthikeyan, Sanjay Mokashi here, Chief Underwriting Officer. In terms of growth, we have set a target of, say, roughly about 10 percent.

Karthikeyan K: Hello.

Sanjay Mokashi: Yeah, Karthikeyan. Sanjay Mokashi here, Chief Underwriting Officer. In terms of growth, we have set a target of, say, roughly about 10%. It varies for domestic and foreign. In foreign, we would expect a more pronounced growth than the domestic market. That is about growth. We will also be managing the cycle. There are soft cycle and taking a review mid-year this year as to what should be our, whether growth target needs to be relooked, needs to be revised based on our experience mid-year. In terms of losses in life, as our CMD, sir, in his opening remark mentioned, or in one of the answers to one of the questions you mentioned, that life re results need to be seen over a cycle rather than for a short period of time.

Speaker #3: It varies for domestic and foreign. In foreign, we would expect a more pronounced growth than the domestic market. That is about growth, but we will also be managing the cycle.

Speaker #3: There is a soft cycle, and we are taking a review midyear this year as to whether our growth target needs to be relooked at, or needs to be revised, based on our experience midyear.

Speaker #3: In terms of losses in life, as our CMD Sir mentioned in his opening remarks or in one of the answers to one of the questions, he mentioned that life results need to be seen over a cycle rather than for a short period of time.

Speaker #2: Okay. I mean, our strength remains what we have earlier advised—that in the domestic market, despite the competitive pressure, our goal will be to maintain our market share.

Karthikeyan K: Okay. I mean,

Hitesh Joshi: Our stand remains what we have earlier advised that in domestic market, despite the competitive pressure, our goal will be to maintain our market share. On foreign side, to the extent we have got our rating back and we are in touch with all the segments and markets where we lost our business, which we had prior to rating downgrade. We will be trying to inch up on all those aspects. At the same time, the pruning will continue, and our guidance on overall underwriting performance improvement remains.

Speaker #2: And on the foreign side, to the extent that we have got our rating back, we are in touch with all the cedents and markets where we lost our business, which we had prior to the rating downgrade.

Speaker #2: So, we'll be trying to inch up on all those aspects. At the same time, the pruning will continue, and our guidance on overall underwriting performance improvement remains.

Speaker #2: I completely understand regarding the foreign part. At one point in time, we had almost ₹18,000 crore of premium coming from the foreign portfolio. So, is it possible to reach that level again, maybe in a couple of years?

Karthikeyan K: I completely understand on the foreign part. At one point of time, we had almost INR 18 thousand crores of premium coming from foreign portfolio. Is it possible to reach that and maybe in couple of years? Maybe next 2 years?

Speaker #2: Maybe next two years.

Speaker #3: 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.

Hitesh Joshi: Maybe not in a couple of years because of the significant softening trends, the same exposure is coming at a lesser premium. Maybe not in 2 years, maybe 3 or 4 years. While we have the broader targets and goals and direction, we are not really keen on pursuing those targets at the cost of overall risk-return optimization. We are very much focused on return on equity and shareholder value creation. All these targets will be directional, but not driving our decision making.

Speaker #3: But then, while we have the broad targets, goals, and direction, we are not really keen on pursuing those targets at the cost of overall risk-return optimization.

Speaker #3: We are very much focused on return on equity and shareholder value creation. All these targets will be directional, but not driving our decision-making.

Speaker #2: Got it. And so, regarding the credit rating upgrade to AA, do you have any timelines in mind?

Karthikeyan K: Got it. Sir, see the credit rating upgrade to A, any timelines you have in mind?

Hitesh Joshi: That is difficult to say because there are very many factors in terms of the business model, the global softening trends, and where we end up in terms of our financial and business competitive position. Also, there are two major developments which are in the offing, the IFRS and the RBC. It is not really possible to give any timeline. But if things go all right, probably one can expect in a period of, say, something like four to five years.

Speaker #3: That is difficult to say because there are very, very many factors in terms of the business model, the global softening trends, and where we end up in terms of our financial and business competitive position. Also, there are two major developments which are in the offing—the IFRS and the RBC.

Speaker #3: So it is not really possible to give any timeline, but if things go all right, probably one can expect a period of, say, something like four to five years.

Speaker #2: Okay. And you had mentioned in some interviews, say, that you're focusing now—the company has to focus on specialty or insurance, I mean, rather than going for, say, fire or property in the international market.

Karthikeyan K: Okay. You had mentioned in some interviews, say, your company has to focus on specialty insurance, rather than going for, say, fire or property in the international market. So how big is an opportunity, the specialty part? Can you elaborate on that part?

Speaker #2: So, how big is an opportunity is the specialty part, and can you elaborate on that part?

Speaker #3: See, as a global reinsurer, I think the entire global markets are available. It is basically approaching those markets and picking and choosing one's risk selection, one's path, and building a risk portfolio, which is so very material.

Hitesh Joshi: See, as a global reinsurer, I think the entire global markets are available. It is basically approaching those markets and picking and choosing one's risk selection, one's path and building a risk portfolio, which is so very material. Because if you look at, say, GIC's market share globally, it will be fairly small because this market is essentially dominated by, say, Europe and US. Given the market share that GIC has on the international book, the scope is tremendous. All the classes, specialty classes, casualty, but it also requires a different level of skill set. So we have to have a calibrated approach, and that is what we are planning to pursue.

Speaker #3: Because if you look at, say, J series markets globally, it will be fairly small because these markets are essentially dominated by, say, Europe and the US.

Speaker #3: So given the market share that JC has on the international book, the scope is tremendous. All the classes—specialty classes, casualty—but it also requires a different, I mean, different level of skill set. So we have to have a calibrated approach, and that is what we are planning to pursue.

Speaker #2: Okay, so one final question. The presentation, whatever is put on the website, right? The investment slide is showing the March data rather than the June-end data.

Karthikeyan K: Okay. One final question. The presentation or whatever is put in the website, right? The investment slide is showing the March data rather than the June end data. I mean

Speaker #2: I mean we'll correct

Hitesh Joshi: We will correct it if there is a mistake. We will take a look at it.

Speaker #3: If there is a mistake, we'll take a look at it.

Speaker #2: I mean, that's fine, but I just want to know, what's the current investment book like? I mean, from debt, equity, and money market and all other parts put together, what's the current size of the book by end of June?

Karthikeyan K: That is fine, but I just want to know what is the current investment book like from debt, equity, and money market and all other parts. What is the current size of the book by end of June?

Radhika Ravishekar: This is Radhika Ravishekar, the CIO. Hello.

Speaker #3: So this is Radhika Ravishik, the CIO. Hello.

Speaker #2: Yeah, I'm able to hear you.

Karthikeyan K: Yeah, I am able to hear you.

Speaker #3: Seventy-three point four percent is in the fixed income securities, sir.

Radhika Ravishekar: 73.4% is in the fixed income securities, sir.

Speaker #2: Okay.

Karthikeyan K: Okay.

Speaker #3: Around 17 percent in equity, and around 8.67 percent or something in money market instruments.

Radhika Ravishekar: Around 17% in equity and around 8.67% or something in money market instruments.

Speaker #2: Okay. What's the quantum of the book? I mean, it was like ₹1,17,000 crore at the end of March.

Karthikeyan K: What is the quantum of the book? It was INR 1,17,000 crore on the end of March.

Speaker #3: One lakh, maybe one lakh twenty thousand and odd crores on a book value basis. Market value is one lakh fifty-seven thousand crores.

Radhika Ravishekar: INR 1,20,000 and odd crores on book value basis. Market value is INR 1,52,000. Sorry. INR 1,57,000 crores.

Speaker #2: So, essentially, the share of debt in our book, on a book value basis, doesn't fluctuate much because it is a fairly stable book.

Hitesh Joshi: Essentially, the share of debt in our book on book value basis doesn't fluctuate much because it is a fairly stable book. We are not planning to reduce our equity share in a very major way, which continues to be around 17%.

Speaker #2: And we are not planning to reduce our equity share in a very major way, which continues to be around 17 percent. Got it. Thank you, and that's all I have.

Karthikeyan K: Got it. Thank you, and that's all I have. All the best.

Speaker #2: All the rest.

Speaker #3: Thank you. Thanks.

Hitesh Joshi: Thank you.

Radhika Ravishekar: Thank you.

Operator: Thank you. A reminder to all the participants that you may press star and 1 to ask a question. Next question comes from the line of Jenish Shah, an individual investor. Please go ahead.

Speaker #1: Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Jenny Shah, an individual investor.

Speaker #1: Please go ahead.

Speaker #2: Yes, thank you very much for the opportunity. I have a few questions. The first is with regard to the Gujarat flood. Basically, you mentioned that the numbers are still coming in.

Jenish Shah: Yes, sir. Thank you very much for the opportunity. I have two questions. One first is with regard to the Gujarat flood. Basically, you mentioned that the numbers are still coming. Is there anything which is provided right now in the numbers in the Q1 results? That is first question. Second is a bit on the growth and the profitability. You are trying to balance both of it. But it seems like for last couple of years, you have been setting the targets especially on how the business looks like in terms of an international. You aspire to be 50/50. But it looks like we are still on the downhill path, at least on the international side. There are headwinds to go up in that number. Profitability, obviously, the job has been much better than expected, and I congratulate on that.

Speaker #2: Is there anything that is provided right now in the numbers in the Q1 results? That is the first question. The second is, it is a bit on the growth and the profitability—you're trying to balance both.

Speaker #2: But it seems like, I mean, for the last couple of years you’ve been setting the targets, especially on how the business mix looks like.

Speaker #2: In terms of an international you aspire to be 50 50. But it looks like we are we are still on the downhill path of on at least on the international side.

Speaker #2: And there are headwinds to go up in that number. Profitability, obviously—I mean, the job has been much better than expected, and I congratulate you on that.

Speaker #2: But looking at this current environment, your aspiration to reduce that combined ratio by one percentage point every year—how feasible does that look this year and next year?

Jenish Shah: But looking at this current environment, your aspiration to reduce that combined ratio by 1 percentage point every year, how feasible that looks like in this year and the next year for the profitability to perform in the business? The third is on the obligatory part. I have seen this quarter, the obligatory portion has been around 33% of the domestic book. Is it the new norm that we are looking at that the obligatory side of the book is going to see a lower contribution? Although I have also observed that has come with a little bit of a higher combined ratio on the domestic side. Usually, you have been around 102, 103. This time it has been 107. So if you can give a little understanding about these three aspects.

Speaker #2: For the profitability to perform in the business. And the third is on the obligatory part. I've seen this quarter, the obligatory portion has been around 33 percent of the domestic book.

Speaker #2: Is it the new norm that we are looking at, that the obligatory side of the book is going to see a lower contribution? Although, I've also observed that that has come with a little bit of a higher combined ratio on the domestic side.

Jenish Shah: Although I have also observed that has come with a little bit of a higher combined ratio on the domestic side. Usually, you have been around 102, 103. This time it has been 107. So if you can give a little understanding about these three aspects. How are these going to shape up in this year and maybe next couple of years for you in this aspect? Thank you, sir.

Speaker #2: Usually, you have been around 102–103; this time, it's been 107. So if you can give a little understanding about these three aspects—how are these going to shape up this year and maybe over the next couple of years for you in this aspect.

Jenish Shah: How are these going to shape up in this year and maybe next couple of years for you in this aspect? Thank you, sir.

Speaker #2: Thank you, sir. So to start with, for the Gujarat flood, our provisioning is ₹400 crore plus.

Hitesh Joshi: To start with Gujarat flood, our provisioning is INR 400 crore plus. INR 440 crore. INR 442. INR 440 crore. INR 440 crore. That is the provision we have made in Q1. Thank you for recognizing that there are better profitability trends than your expectation. 50/50 that we talk about domestic versus international is fairly a long-term goal, given that the domestic market continues to be the growth driver globally in comparison to the other global markets. As you rightly recognized, and we agree fully that it is an uphill task. 50/50 is absolutely long-term goal. What we are presently targeting with a medium-term in view is 60/40. Again, our goal will be 60/40, but as I said that domestic market outgrows the global market, so it will be a tough job.

Speaker #3: 440 crores. 440 crores.

Speaker #2: ₹440 crore. That is the provision we have made in Q1. Thank you for recognizing that there are better profitability trends than your expectation.

Speaker #2: 50 50 that we talk about domestic versus international is fairly a long term goal. Given that the domestic market continues to be the gross driver globally in compared to other in comparison to the other global markets.

Speaker #2: So as you rightly recognized and we agree fully that it is an uphill task. So 50 50 is absolutely long term goal. What we are presently targeting in with a medium term in view is 60 40.

Speaker #2: But again the I mean this this our our goal will be 60 40 but as I said that domestic market outgrows the global market.

Speaker #2: So, it will be a tough job. We continue to try to optimize the risk-return balance, and that is where our entire energy is devoted.

Hitesh Joshi: We continue to try to optimize the risk-return balance, and that is where our entire energy is devoted. As I said that these targets are just targets. They can't drive the decision-making beyond a point. Now, coming to the 1% improvement, we have further drilled down, and we are now differentiating between domestic book and foreign book. We would like to have a combined ratio target for domestic book at something like 103 and the foreign book at 95, in line with the global markets. That is what we should be targeting. That is the global trend in terms of the reinsurance market profitability.

Speaker #2: As I said, these targets are just targets. They can't drive the decision making beyond a point. Now, coming to the 1% improvement, we have further drilled down, and we are now differentiating between domestic book and foreign book.

Speaker #2: And we would like to have, say, a combined ratio target for the domestic book at something like 103, and for the foreign book at 95, in line with the global markets.

Speaker #2: So that is where the we that is what we should be targeting that is the global trend in terms of the reinsurance market profitability.

Speaker #3: 94.

Speaker #2: Is there any timeline to it? Timeline, I think we are fairly close to 103. 95, again, we filled that probably in a span of two to three years.

Jenish Shah: Is there any timeline to it?

Hitesh Joshi: Timeline, I think we are fairly close to 103. 95, again, we feel that probably in a span of two to three years.

Speaker #2: Okay, yeah. Again, coming to the third question—I think you are right that it is our effort to grow our non-obligatory book.

Jenish Shah: Okay. Yeah.

Hitesh Joshi: Again, coming to the third question, I think you are right that it is our effort to grow our non-obligatory book. I think that is partly getting obvious from the figures.

Speaker #2: And I think that is partly becoming obvious from the figures.

Speaker #3: Okay.

Speaker #2: Yeah but is it is it going to come at the cost of the profitability? I'm saying we have seen your I mean the other other speakers also mentioned that life insurance is a new area and that's where the losses are still coming in.

Jenish Shah: Yeah. But is it going to come at the cost of the profitability? We have seen your other speakers also mention that life insurance is a new area and that is where the losses are still coming in, and your experience is very new to it. Is that an experiment which we are doing to mitigate the effect of the obligatory side of the business then?

Speaker #2: And it's your your experience is very new to it. Is that an experiment which we are we are doing to mitigate that mitigate the effect of the non obligatory or sorry obligatory side of the business.

Speaker #3: We will be mindful of the profitability, and I would not at all agree that we are experimenting. Our book in life has been fairly stable at around 20 percent market share.

Hitesh Joshi: We will be mindful of the profitability. I would not at all agree that we are experimenting. Our book in life has been fairly stable at around 20% market share. Now that we are going to focus, it will grow. But it is certainly not an experiment. It is backed by actuarial analysis and all the analysis that is usually available to a reinsurer.

Speaker #3: Now that we are going to focus, it will grow. But it is certainly not an experiment. It is backed by actual analysis, and all the analysis that is usually available to our insurer.

Speaker #2: Okay. And lastly, I think—I mean, in spite of all that observation, I've been following this company for the last three years.

Jenish Shah: Okay. Lastly, I think in spite of all the observations being following this company for last three years and have seen consistent improvement in the performance of the company. Although the growth rates have been a little bit slower than what I expected, but in terms of the shareholder returns, it is nowhere near the expectation. Recently, the government has reduced its stake, but it looks like the market is not recognizing the kind of performance which you have, which you have been delivering. Is there any thoughts around and of course, the one part which I want to also mention about is the capital. I think the solvency ratio which you are following is far more higher. With the kind of performance that you have, it will keep ballooning. Your return on equity is absolutely online, but I am saying what is lacking here is growth.

Speaker #2: And have seen consistent improvement in the performance of the company, although the growth rates have been a little bit slower than what I had expected.

Speaker #2: But it in terms of the shareholder returns it's it's it's it's nowhere near the expectation. You've also I mean recently the government has reduced its stakes.

Speaker #2: But it looks like the valuation the market is not recognizing the kind of performance which you have. Which you have been delivering is there any thoughts around and and of course the one one part which I want to also mention about is the capital.

Speaker #2: I think the capital is far more—I mean, the solvency ratio which you're following is much higher. And with the kind of performance that you have, it will keep ballooning.

Speaker #2: Your return on equity is absolutely on line. But I'm saying what is lacking here is growth. I think the profitability has already been achieved, but the growth is still lacking. That is one reason why, probably, it looks to me that the market is not recognizing it.

Jenish Shah: I think the profitability you have already achieved, but the growth is still lacking, and that is one reason why probably it looks like to me that the market is not recognizing. Maybe on two part, one on your call on the market, is there anything which the management is mindful about having the kind of valuation it is been trading in the market? The second is about the capital. What is your plan on capital? Because it keeps increasing very fast in the absence of growth.

Speaker #2: So maybe in two parts. One, your call on the market: is there anything that the management is mindful about, having—I mean, the kind of valuation it's been trading at in the market?

Speaker #2: And the second is about the capital. What's your plan on capital? Because it keeps increasing very fast in the absence of growth.

Speaker #3: So, our writing solvency at 4.3 has to be seen in the context of the improving performance and the conservative approach that we have followed, because we have come out of a writing downgrade and we are now aspiring for the next level, which is A from A minus.

Hitesh Joshi: Our rising solvency at 4.3 has to be seen in the context of the improving performance. The conservative approach that we have followed because we have come out of a rating downgrade and we are aspiring for now the next level, which is A from A-minus. At the same time, we also have to keep in mind that we are in the phase of implementation of IFRS and RBC. Any growth globally in terms of reclaiming our business that we had as an A-minus reinsurer, getting that business back takes time, and that is why this entire focus on rebalancing the catastrophe exposures on property side as well as growth in casualty on the international side.

Speaker #3: At the same time, we also have to keep in mind that we are in the phase of implementation of IFRS and RBC. So, any growth globally in terms of reclaiming our business that we had as an A minus reinsurer—getting that business back—takes time, and that is why there is this entire focus on rebalancing the catastrophe exposures on the property side as well as growth in casualty on the international side.

Speaker #3: So we are very much mindful, but I think we will have to be a little patient, and our focus will continue to be more on profitability versus growth, on the specialty and global book.

Hitesh Joshi: We are very much mindful, but I think we will have to be a little patient and our focus will continue to be on more on profitability versus growth on the specialty and global book. Maybe solvency will come down gradually. We do not want to grow at the cost of profitability.

Speaker #3: So maybe solvency will come down gradually. We don't want to grow at the cost of profitability.

Speaker #2: Okay. And any thoughts on the shareholder value creation process? Thank you.

Jenish Shah: Okay. Any thoughts on the shareholder value creation, sir? Thank you.

Speaker #3: I think we'll continue to be focused on our return on equity, and you can expect some improvement. I think, when we are talking about a 1% overall improvement in combined ratio, or, say, domestic getting targeted at a 103 combined ratio and foreign at 95.

Hitesh Joshi: I think we will continue to be focused on our return on equity, and you can expect some improvement. I think when we are talking about 1% overall improvement in combined ratio or, say, domestic getting targeted at 103 combined ratio and foreign at 95 over a period of, say, something like the next 2 to 3 years, that should give you some idea as to what will be the improvement in return on equity.

Speaker #3: Over a period of, say, something like the next two to three years, that should give you some idea as to what will be the improvement in return on equity.

Speaker #2: Okay. Thank you sir.

Jenish Shah: Okay. Thank you, sir.

Speaker #3: Thank you.

Hitesh Joshi: Thank you.

Speaker #1: Thank you. A reminder to all the participants that you may press star one to ask a question. The next question comes from the line of Sema Ali with J.P. Morgan.

Operator: Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Saiama Ali with JP Morgan. Please go ahead.

Operator: Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Saima Ali with JPMorgan. Please go ahead.

Speaker #1: Please go ahead.

Speaker #4: Thank you for the opportunity. I had two data-keeping questions. First, what is the split of your investment book by market value in terms of equity and debt?

Operator: Thank you for the opportunity. I had two data keeping questions. First was, what is the split of your investment book by market value in terms of equity and debt? Also, second question was, if your investment book on the market value basis incorporates your markup for NSE, like your share of investment in NSE. Thank you.

Saima Ali: Thank you for the opportunity. I had two data keeping questions. First was, what is the split of your investment book by market value in terms of equity and debt? Also, second question was, if your investment book on the market value basis incorporates your markup for NSE, like your share of investment in NSE. Thank you.

Speaker #4: And also, the second question was if your investment book on a market value basis incorporates your markup for NSC—like, your share of investment in NSC.

Speaker #4: Thank you.

Speaker #5: Yeah this is Radhika Ravishakar again the CIO. Market value as told is one lakh fifty seven thousand eight hundred crores. So that includes only equity which is around fifty eight thousand crores.

Radhika Ravishekar: Yeah, this is Radhika Ravishankar again, the CIO. Market value as told is INR 157,800 crores. That includes only equity, which is around INR 58,000 crores because debt is kept at cost only in ours as it is held to maturity.

Speaker #5: Because debt is kept at cost only in ours, as it is held to maturity.

Speaker #4: Okay, thank you. And my second question is...

Operator: Okay. Thank you.

Saima Ali: Okay. Thank you.

Speaker #5: Yeah, yeah, of course. Your second question regarding NSC—it includes NSCs also.

Radhika Ravishekar: Yeah.

Operator: My second, yeah.

Saima Ali: My second, yeah.

Radhika Ravishekar: To your second question regarding NSE, it includes NSE also.

Speaker #4: Okay, thank you, ma'am. Yes, thank you, ma'am.

Operator: Okay.

Saima Ali: Okay.

Radhika Ravishekar: Hello.

Operator: Thank you, ma'am. Yes, thank you, ma'am.

Saima Ali: Thank you, ma'am. Yes, thank you, ma'am.

Speaker #1: Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Shivam Kothari, an individual investor.

Operator: Thank you. A reminder to all the participants that you may press star and 1 to ask a question. The next question comes from the line of Shubham Kothari, an individual investor. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: Thank you for the opportunity. I had a few questions. The first one I was seeing the investor presentation and in that the slide which explains the net worth excluding fair value change in Q1 it has fallen from fifty one thousand to forty five thousand crores.

Shubham Kothari: Thank you for the opportunity. I had a few questions. The first one, I was seeing the investor presentation, and in that the slide which explains the net worth excluding fair value change. In Q1, it has fallen from INR 51,000 to INR 45,000 crores despite us reporting a profit. Can you please explain why has this fallen, the net worth?

Speaker #3: Despite us reporting a profit can you please explain why has this fallen the net worth? I think our net worth has only increased well recheck the figures because excluding net worth there is no reason for the excluding fair value there is no reason for the net worth to drop.

Hitesh Joshi: I think our net worth has only increased. We will recheck the figures because excluding fair value, there is no reason for the net worth to drop.

Speaker #2: Exactly. Yeah, because there's a significant drop of almost ₹6,000 crore from March to June. So I was not sure why it's dropping.

Shubham Kothari: Exactly. Yeah. Because there is a significant drop of almost INR 6,000 crores from March to June, so I was not sure why it is dropping.

Speaker #3: We will check, and we can come back if you can share your contact details or maybe contact us.

Hitesh Joshi: We will check and we can come back. If you can share your contact details, or maybe contact us.

Speaker #2: Yeah, sure. So that's the first question. The second one, I'm seeing the net worth including fair value change from FY24 to FY26, and it has largely been, you know, flat, in terms of going from eighty-one thousand to eighty-four thousand crores.

Shubham Kothari: Yeah, sure. That's the first question. Second one, I'm seeing the net worth including fair value change from FY24 to FY26, and it has largely been flat from INR 81,000 to INR 84,000 crores. That's been the range. Whereas our profits have been almost INR 7,000 to INR 8,000 crores on a yearly basis. Can you help me understand why the net worth including fair value chain has been flat despite profits? If this is the IFRS linked net worth, then does that mean our ROE at an IFRS level would be like broadly zero to 2% range?

Shubham Kothari: Yeah, sure. That's the first question. Second one, I'm seeing the net worth including fair value change from FY24 to FY 2026, and it has largely been flat from INR 81,000 to INR 84,000 crores. That's been the range. Whereas our profits have been almost INR 7,000 to INR 8,000 crores on a yearly basis. Can you help me understand why the net worth including fair value chain has been flat despite profits? If this is the IFRS linked net worth, then does that mean our ROE at an IFRS level would be like broadly zero to 2% range?

Speaker #2: That's been the range, whereas our profits have been, you know, almost ₹7,000 to ₹8,000 crore on a yearly basis. So, can you help me understand why the net worth, including fair value change, has been flat despite profits?

Speaker #2: And if this is the IFRS-linked net worth, then does that mean our ROE at an IFRS level would be, like, you know, broadly in the zero to two percent range?

Speaker #3: We are yet to get into the IFRS regime. For the corporation, whatever change in fair value is only entirely because of the—.

Hitesh Joshi: We are yet to get into IFRS regime for the corporation. Whatever is the change in fair value is only entirely because of the-

Speaker #2: Fair value changes from quarter to quarter.

Shubham Kothari: Fair value changes in quarter to quarter.

Speaker #3: It is entirely because of the reduction in fair value.

Hitesh Joshi: It is entirely because of the reduction in fair value.

Speaker #2: Which is fine. So I understand it could be because of your equity market value changes—investments that we make. But then why has the net worth been flat, you know, between that eighty to eighty-four thousand level for the last three years?

Shubham Kothari: Which is fine. I understand it could be because of your equity market value changes, the investments which you do. But then why is the net worth being flat between that INR 80,000 to INR 84,000 levels for the last three years despite good profitability? Is it good to assume that the profits which we've reported has been offset by, let's say, reduction in the fair market value of the equity investment?

Speaker #2: Despite good profitability, is it good to assume that the profits which we have reported have been offset by, let's say, a reduction in the fair market value of the equity investment?

Speaker #3: That has to be the only answer. That has to be the only answer.

Hitesh Joshi: That has to be the only answer.

Speaker #5: There is a small line reduction.

Radhika Ravishekar: There is a small reduction.

Speaker #3: Yes, I agree. What you say is correct.

Hitesh Joshi: Yes, I agree. What you say is correct.

Shubham Kothari: Okay. Because that's a significant number, net worth is flat for the last three years.

Speaker #2: Okay. Because that is significant. Net worth has been flat for the last three years.

Speaker #3: But without fair value, it has increased by two points.

Hitesh Joshi: But the dots in value, I think is very positive.

Speaker #2: Hello.

Shubham Kothari: Hello.

Speaker #1: Ladies and gentlemen, the management line has been disconnected. Please be on hold while we quickly get them reconnected. Ladies and gentlemen, the management line has been reconnected.

Operator: Ladies and gentlemen, the management line has been disconnected. Please be on hold while we quickly get them reconnected. Ladies and gentlemen, the management line has been reconnected. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: So, Mr. Shivam, are you there?

Hitesh Joshi: Mr. Shubham Kothari, are you there?

Speaker #2: Yeah.

Shubham Kothari: Yeah.

Speaker #5: Yes.

Speaker #3: So what you say is correct. I think almost the entire change in the net worth, including fair value, is essentially on account of market value changes.

Hitesh Joshi: So what you say is correct. I think almost the entire change on the net worth including fair value is on account of essentially market value changes. And you are right in including the profit or whatever is for financial performance, changing the net worth. So the only variable which is moving this is market value, fair value.

Speaker #3: And you are right in including the profit or whatever is for financial performance, changing the net worth. So the only variable which is moving this is market value.

Speaker #3: Fair value.

Speaker #2: Okay. Which also is largely from equity, because the other fixed income instruments would not really have a falling value.

Shubham Kothari: Okay, which also would largely be from equity because the other fixed income instruments would not really have a falling value.

Speaker #3: No, we only mark to market and consider fair value for equity, not for debt. So the entire explanation has to come from fair value.

Hitesh Joshi: No. We only mark to market and consider fair value for equity, not for debt. So the entire explanation has to come from fair value.

Speaker #2: Okay. But it's quite a significant number, so it would be good to understand—maybe next time—the details around why the fair value is what it is.

Shubham Kothari: Okay. But it is quite a significant number, so it would be good to understand maybe next time the details around that. Why is the fair value reduced?

Speaker #3: Sure sure sure.

Hitesh Joshi: Sure.

Speaker #2: And lastly, our Q1 performance in terms of consolidated profitability came lower than the standalone profit. I may have missed the first part of the transcript call.

Shubham Kothari: And last, our Q1 performance in terms of consolidated profitability, that came lower than the standalone profit. I maybe missed the first part of the transcript call. So can you explain which subsidiary is causing the loss and what was the loss reason?

Speaker #2: So, can you explain which subsidiary is causing the loss, and what was the reason for the loss?

Rajesh Khadatare: There is no loss per se. This is Rajesh Khadatare, CFO. There is no loss per se, but the profit has decreased basically. For AICL, this has decreased by almost 60% decrease is there in their profit for this quarter. Actually, this is the very first quarter, so it is not the real indicator for the full year. And other associate companies, we have seen some losses also. And similarly for other subsidiary companies, there are some changes actually happening in the very first quarter. That is why this figure is a little lower.

Speaker #3: There is no loss per se.

Speaker #2: This is Rajesh Lahiri. There is no loss per se, but the profit has decreased, basically. For AICL, this has decreased by almost 50–60 percent; a decrease is there in their profit.

Speaker #2: For this quarter—actually, this is the very first quarter—so it's not a real indicator for the full year. And with other associate companies, we have seen some losses as well.

Speaker #2: And similarly, for other subsidiary companies, there are some changes actually happening in the very first quarter. That's why this figure is a little lower.

Speaker #3: Okay. So, for the guidance for the entire year at a consolidated level, would it still be growth in terms of profitability?

Shubham Kothari: Okay. So for the guidance for the entire year at a consolidated level would still be-

Rajesh Khadatare: Yeah.

Shubham Kothari: A little growth in terms of profitability.

Speaker #2: We want to know subsidiary company-wise. South Africa, we have shown a ₹287 crore loss during this quarter, and Moscow, some ₹29 crore loss.

Rajesh Khadatare: If you want to know subsidiary company-wise, South Africa, we have shown INR 287 crore loss during this quarter. Moscow, some INR 29 crore loss from the subsidiary. That has resulted into the lower figure compared to last year in consolidated operating profit. Okay?

Speaker #2: From the subsidiary. That has resulted in the lower figure compared to last year in consolidated operating profit. Okay.

Shubham Kothari: Okay.

Speaker #3: Okay.

Speaker #2: Yeah.

Rajesh Khadatare: Yeah.

Speaker #1: Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question comes from the line of Anusri.

Operator: Thank you. A reminder to all the participants that you may press star and 1 to ask a question. Next question comes from the line of Anushri, an individual investor. Please go ahead.

Speaker #1: An indigenous investor. Please go ahead.

Speaker #6: Hello team. Thank you for answering all the questions, and thank you for this opportunity. So, my question is just a very plain one on the business.

[Company Representative]: Hello, team. Thank you very much for all the presentations, and thank you for this opportunity. My question is just a very plain one on the business. As we could see from the financials and annual reports that the company has been growing share in its health insurance business. If we speak very macroeconomically, obviously the medical costs here in India are rising, and that is one reason, the prominent reason why we see the health insurance sector to be writing a lot of premiums. My question is, an increased business in health insurance can bring a lot of reinsurance business for the company, but doesn't it mean also a lot of claims could be settled, a lot of claims can actually come in?

[Shareholder] (Private Investor): Hello, team. Thank you very much for all the presentations, and thank you for this opportunity. My question is just a very plain one on the business. As we could see from the financials and annual reports that the company has been growing share in its health insurance business. If we speak very macroeconomically, obviously the medical costs here in India are rising, and that is one reason, the prominent reason why we see the health insurance sector to be writing a lot of premiums.

Speaker #6: So as you could see from the financials and annual reports, the company has been growing its share in the health insurance business. So if we speak very macroeconomically, obviously the medical costs here in India are rising, and that is one reason.

Speaker #6: I mean the predominant reason why we see the health insurance extra sector to be like riding a lot of premiums and yeah. So my question is so an increased business in health insurance can bring a lot of reinsurance business for the company but doesn't it mean also a lot of claims could be settled.

[Shareholder] (Private Investor): My question is, an increased business in health insurance can bring a lot of reinsurance business for the company, but doesn't it mean also a lot of claims could be settled, a lot of claims can actually come in? While the focus is on improving the underwriting, I mean, the combined ratio, doesn't the growing business in health insurance mean a lot of claims could come in, and then that could affect the profitability?

Speaker #6: A lot of claims can actually come in, and that is why our focus is on improving the underwriting. I mean the combined ratio.

[Company Representative]: While the focus is on improving the underwriting, I mean, the combined ratio, doesn't the growing business in health insurance mean a lot of claims could come in, and then that could affect the profitability? Anushri, this is Sanjay Mokashi, Chief Underwriting Officer. Your observations are right that health insurance is growing because of medical costs, but health insurance is also growing because a lot many new buyers are buying health insurance. With regard to your specific question, whether the portfolio growth can bring more losses, the answer is on the reinsurance side, we are focusing more on the retail segment rather than the corporate or group health segment.

Speaker #6: Doesn't the growing business in health insurance mean a lot of claims could come in, and then that could affect the profitability?

Speaker #2: Yeah. Anusri, this is Sanjay Mukashi, Chief Underwriting Officer. Your observations are right that health insurance is growing due to increasing medical costs, but health insurance is also growing because many new buyers are purchasing health insurance.

Sanjay Mokashi: Anushri, this is Sanjay Mokashi, Chief Underwriting Officer. Your observations are right that health insurance is growing because of medical costs, but health insurance is also growing because a lot many new buyers are buying health insurance. With regard to your specific question, whether the portfolio growth can bring more losses, the answer is on the reinsurance side, we are focusing more on the retail segment rather than the corporate or group health segment. Our observation, our analysis shows us that it is this segment which is more loss-prone, and retail is a better performing segment. With this measured and calibrated approach, we hope that whatever happens on the direct side, we get protected on the reinsurance side. Hope that answers.

Speaker #2: With regard to your specific question, whether the portfolio growth can bring more losses, the answer is: on the reinsurance side, we are focusing more on the retail segment rather than the corporate or group health segment.

Speaker #2: And our observation, our analysis, shows us that it is this segment which is more loss-prone, and retail is a better performing segment.

Sanjay Mokashi: And our observation, our analysis shows us that it is this segment which is more loss-prone, and retail is a better performing segment. With this measured and calibrated approach, we hope that whatever happens on the direct side, we get protected on the reinsurance side. Hope that answers.

Speaker #2: With this measured and calibrated approach, we hope that whatever happens on the direct side, we get protected on the reinsurance side. Hope that answers.

Speaker #6: Yeah sorry.

[Company Representative]: Yeah, got it.

[Shareholder] (Private Investor): Yeah, got it.

Speaker #1: Thank you. A reminder to all participants that you may press star and one to ask a question. Ladies and gentlemen, as there are no further questions, we have reached the end of the question and answer session, and I now hand the conference over to the management for closing comments.

Operator: Thank you. A reminder to all the participants that you must press star and one to ask a question. Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I now hand the conference over to the management for closing comments.

Speaker #3: Thank you all for joining in and as we have explained and we have elaborated on our philosophy towards the business that profitability will be the driving factor as compared to the growth and we have now further subdivided our targets for domestic underwriting combined ratio and foreign combined ratio so we hope to do a much better job going forward in line with what I have what we have been doing thank you for engaging have a good day.

Hitesh Joshi: Thank you all for joining in, and as we have explained and we have elaborated on our philosophy towards the business, that profitability will be the driving factor as compared to the growth. We have now further subdivided our targets for domestic underwriting combined ratio and foreign combined ratio. So we hope to do a much better job going forward in line with what we have been doing. Thank you for engaging. Have a good day.

Speaker #1: Thank you. On behalf of General Insurance Corporation of India that concludes this conference. Thank you for joining us. You may now disconnect your lines.

Operator: Thank you. On behalf of General Insurance Corporation of India, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

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Q1 2027 General Insurance Corp of India Earnings Call

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