Reliance General Insurance FY25 Financial Summary: A Post-Acquisition Growth Story

Reliance General Insurance, one of India's leading private sector general insurers, has reported strong performance in FY25, demonstrating its turnaround and robust fundamentals under the new ownership of IIHL (Hinduja Group). Here's a comprehensive look at its financial and operational metrics.

A) Net Profit

• FY25: ₹315 crore

• FY24: ₹280 crore

• Growth: +12.5% YoY

This growth signals a sharp recovery post-acquisition, outpacing the general insurance industry average profit growth of 5.2%.

Insight: The boost in profitability can be attributed to operational efficiencies and capital support from IIHL.

B) Premium Performance

• Gross Direct Premium (GDP): ₹12,548 crore

• Growth: +7.4% YoY

Reliance General Insurance's premium growth outperformed the overall industry, showcasing its improved market positioning and product distribution.

Insight: Effective customer outreach and a stronger distribution network were key drivers.

C) Revenue & Financials (All in ₹ Crore)

FY25:

• Revenue from Insurance: ₹8000cr

• Claims Settled: ₹5404cr

• Commission: ₹1112cr

• Operating Expense: ₹1298cr

• Operating Income: ₹185cr

FY24:

• Revenue from Insurance: ₹7384cr

• Claims Settled: ₹5158cr

• Commission: ₹877cr

• Operating Expense: ₹1348cr

• Operating Income: ₹0.25 cr

Insight: Increased revenue and prudent claims management contributed to operational profitability.

D) Balance Sheet Strength

• Net Worth: ₹3,429 crore (+10.2% YoY)

• Solvency Ratio: 159% (Above 150% regulatory norm)

Insight: The insurer has maintained a solid balance sheet, ensuring regulatory compliance and investor confidence.

E) Capital Infusion

• ₹100 crore infused by IIHL in May 2025

• ₹300 crore infused during the IBC process

• Total Capital Raised: ₹400 crore

Insight: These capital infusions have significantly improved solvency metrics and operating stability.

F) Ownership Transition

• Acquired by: IIHL (Hinduja Group) in March 2025

• Context: Post 3-year insolvency resolution via IBC

• Current Holding Company: Industrial International Holdings Ltd

Insight: The acquisition has brought in strategic direction and long-term capital to fuel growth.

Final Takeaway

Reliance General Insurance's FY25 performance demonstrates a successful turnaround, driven by strategic ownership transition, disciplined underwriting, and strong financial fundamentals. With profitability rising, premium collections beating industry average, and a robust solvency buffer, the company is well-poised for sustainable long-term growth.