RAMASWAMY NARAYANAN, former chief executive officer of General Insurance Corporation of India (GIC Re), speaks with quiet confidence, a man who knows his company has turned the corner. Addressing employees and analysts on September 24, 2025, after GIC Re’s standout financial year, Ramaswamy did not shy away from sharing both numbers and the thinking behind them.

“If you look at last year’s performance, I think it looks very good. It has been an excellent performance from the company, because honestly, we managed to improve all the important ratios that we were looking at,” he said, just before he retired on September 30.

However, on October 3, GIC Re’s stock traded around ₹367 on the BSE, down nearly 4.5% over the past year. Trading just above its 52-week low of ₹347 and well below its high of ₹525, the stock has faced a steady decline from its earlier highs.

Kranthi Bathini, equity strategist at WealthMills Securities Pvt. Ltd, says GIC Re and PSU stocks are currently in a consolidation phase.

“Earlier, the stock had strong momentum when it touched around ₹500, but since then, it has entered a period of sideways trading... the company has demonstrated steady revenue growth.”

Bathini is positive about the outlook for insurance companies, particularly general insurance players. “The long-term story is intact, and these companies are likely to do well,” says Bathini.

GIC Re posted a record profit before tax (PBT) of ₹8,765 crore in FY25, its highest ever.

Ramaswamy, who has risen through the ranks at GIC Re after joining as a direct recruit in 1988, tells Fortune India, “We have never had this kind of profit before.”

Underwriting losses decreased from approximately ₹4,600 crore to ₹3,351 crore. The solvency ratio, a key measure of financial strength, rose to 370%, well above the regulatory requirement of 150%, indicating it is very well-capitalised and ready to take on larger business.

GIC Re’s consolidated total income for FY25 was ₹49,941 crore, up 7.2% from ₹46,577 crore in FY24, according to database provider Capitaline. Its profit after tax (PAT) has grown much faster, reaching ₹7,432 crore for FY25.

GIC Re shareholders saw a total return of over 240% in the past three years, including dividends. Its market value was ₹66,702 crore as of October 1, 2025, and the return on capital employed (RoCE) was 13.3%.

For four years, GIC Re had focussed on consolidating its balance sheet, which meant a period of portfolio degrowth. Last year, the company changed course.

“We grew by about 10.7%. And in the domestic market, the non-obligatory part of the business grew by a very impressive 25%. That also gave a message to the insurance market that we are looking for growth, we are there to support them,” says Ramaswamy, who was given the hot seat on October 1, 2023.

Much of this turnaround came from a change in approach rather than a grand new strategy, he says.

“It was just that we became more customer-centric, customer-focussed,” says Ramaswamy. Earlier, GIC’s business was split into specialist verticals — property, marine, motor, and health. While this allowed deep expertise, it also meant teams were stuck in their silos.

“People were looking only at their own businesses, and we were not able to reach out to customers and give them what they wanted. So, what we did last year, and which worked very well for us, was we have one person now looking at the customer, and he’s the one single point of contact for the customer,” says Ramaswamy.

Nikhil Gangil, founder of Intrinsic Value Equity Advisors, says, “The general insurance business cycle hit a multi-year bottom in 2021 and has since been reaching new highs every year. Once growth surges — GST removal could be a behavioural trigger here — the entire sector and business will become unstoppable.”

On September 3, the Union government rationalised the slabs under GST from four to two. It removed the GST on insurance and simplified the rates for re-insurance companies. “Some concerns include unethical practices by insurers, especially in the health insurance segment,” says Gangil.

The international side also received a significant boost. GIC Re regained its A-minus excellent international credit rating from AM Best, the world’s largest credit rating agency specialising in the insurance industry. Ramaswamy describes this as “the icing on the cake”. This rating opens doors in markets where regulators demand top-tier credentials before allowing reinsurers to write business.

“Now we can go out in the international market and get access to write really good quality business, which we couldn’t do earlier. We’ve started that journey from January 1, 2025, and it looks good,” he says.

While expansion is on the agenda, Ramaswamy emphasises that growth must be measured and profitable. “It’s about growing, but growing profitably. Because, you know, there’s no point in just going for the top line’s sake if you are not able to make money out of it.”

India remains central to this ambition. “India is a great market. And we are very, very bullish about this because the economy is doing well, and the government and the regulator are pushing very hard to increase the insurance penetration,” says Ramaswamy.

Regulatory changes, such as the shift to risk-based capital and the adoption of International Financial Reporting Standards (IFRS), specifically IFRS 17, which applies to the insurance industry, will enhance transparency and pricing discipline.

“There will be a very clear understanding of what kind of risks you are carrying, how much you are pricing for that, and how you manage to de-risk your portfolio. And we see a lot of opportunities,” says Ramaswamy.

“We were getting into a situation where reinsurance had to be out of GST’s ambit because already the insurance company is paying it. It is not a new business that is getting added. But it’s good to have that clarification, because obviously, you don’t want to get into a fight with the tax authorities on how to match this, how to ensure that there is no misunderstanding,” he adds.

The removal of GST on reinsurance of individual life insurance and individual health insurance policies could help insurers reduce costs or pass on savings to customers. “From a customer’s perspective, I think I would look at it as that much money is saved for me, or I look at it as a saving, or I still put that money into insurance and buy higher limits,” Ramaswamy explains. He believes the move could encourage people to buy larger health covers, an area where Covid-19 exposed gaps.

Intrinsic Value’s Gangil says, “With the penetration of insurance increasing, whoever the winner is, the biggest general insurer is GIC Re. With zero debt and a price-to-book ratio of 1.05, it is the safest bet. Also, life insurance and health insurance are expected to register a double-digit CAGR over the next five years, making it a high-growth candidate.”

Ramaswamy sees GIC Re not only as a financial player but also as a force for broader societal impact. Natural disasters in India often result in significant economic losses, the majority of which are uninsured. “When you look at natural catastrophes today, depending on where it hits, the insured losses are anywhere from 8% to 12%. It means anywhere from 88% to 92% of the losses are economic, but then they are not covered by insurance.”

GIC Re is collaborating with the government and the National Disaster Management Authority to develop solutions. “We did a project, almost like a pilot, in Nagaland, which has worked well. Hopefully, we can now roll that out to the rest of the country,” he says.

Ramaswamy is clear about the challenges ahead. The combined ratio, a key profitability metric, has to fall below 100%. A combined ratio above 100% means the insurer is paying out more money in claims than it is receiving in premiums.

“Today, for my entire business, we are at around 108%. And the plan is that every year we shed about one or two percentage points of the combined ratio, and then, maybe over the next five years, we should reach a situation where our combined ratio is less than 100%.”

He sees India’s market dynamics as a source of long-term advantage. “The insurance market here worked at a combined ratio of 116%; we work at a combined ratio of 104% for the domestic market. I think we are doing better than the market.”

Ramaswamy feels India’s higher investment returns allow competitive pricing while maintaining profitability. “I think we are very happy with what we have done. Obviously, from a business perspective, we have done well. As we grow and conduct more business, it will obviously contribute to our investment fund, which in turn generates investment income. And that should, together, work for us.”

“The idea is to ensure that GIC Re actually becomes a company that insurance markets worldwide look forward to as a reinsurer of choice. We are good, but then we still have a lot to do,” says the GIC ‘lifer’, who set a course for profitable growth during his term.