GIC Eyes Rs 42,000-43,000 Crore Premium Following Q1 Results

General Insurance Corp. can return to more modest growth rates for the remainder of the current financial year despite a strong performance in the first quarter, Chairperson Ramaswamy Narayanan said as he projected a cautiously optimistic outlook for the company.

GIC had reported a 43% rise in consolidated net profit in the first quarter. The company's bottom line came in at Rs 1,401 crore in the June quarter, compared to Rs 978 crore in the same period last year, according to an exchange filing.

Narayanan said that while the company outperformed its initial expectations, he anticipates a more stable growth trajectory. "The 15–16% growth rate we had initially projected remains our target for the full fiscal year. The high first quarter figures were partly due to some income being booked that might not recur in subsequent quarters," the managing director said in an interview with NDTV Profit.

Narayanan said GIC is aiming to achieve a total premium of Rs 42,000–43,000 crore by the end of the year. He acknowledged that the Q1 results were exceptional but emphasized that the company remains committed to its guidance.

The growth in the health sector, both group and retail, has been a significant driver for GIC. "Health insurance has shown remarkable growth, especially in the retail segment, which is now a focal point for us. This diversification is crucial as it helps balance out potential losses from other sectors, like catastrophic property and agriculture insurance," Narayanan said.

He expressed confidence in the sustainability of this growth, particularly in retail health insurance, which has seen increased demand post-Covid. "The pandemic has made it clear how important it is to have enough health insurance, which has increased demand for health insurance. This trend is expected to continue, presenting promising opportunities for reinsurance."