Mumbai, 13 November, 2017 (GPN) : General Insurance Corporation (GIC) Re. announced its financial performance for the (H1)half year ended September 30, 2017 and Q2FY18
Key Highlights :
•Gross Direct Premium Income of the Company recorded remarkable increase of 51.4% from Rs.16,118.08 Crore in half year ended 30.09.2016 to Rs.24,404.37 Crore in Half year ended 30.09.2017.
•Substantial growth in Indian business of 72.9% to Rs. 19,227.35 Crore for the half year ended 30.09.2017 as against Rs.11,122.71 Crore for the corresponding period for previous year.
•Profit after tax (PAT) for Half year ended 30.09.2017 grew at 89.3 % to Rs. 1,809.22 Crore compared to Rs. 955.81 Crore in Half year ended 30.09.2016
•Earning per share ( EPS) – for HY 30.09.2017 increased to Rs. 21.04 from Rs. 11.11 for the corresponding period in the previous year
•Return on equity (ROE- Annualised), improved to 19.6 % in Half year ended 30.09.2017 compared to 12.2 % in Half year ended 30.09.2016.
•Combined Ratio is 99.4% for the half year ended 30.09.2017 as compared to 99.1% for the Half year ended 30.09.2016. However, in comparison with the year ended 31.03.2017, combined ratio shows an improving trend.
•Solvency ratio of 1.72 as on 30 September 2017, which is above minimum required solvency ratio of 1.50.
Alice G Vaidyan – CMD, General Insurance Corporation (GIC) Re. – GPN NETWORK
Announcing the results Alice Vaidyan, CMD of GIC Re, said that agriculture and marine portfolios have turned profitable and there was overall growth in all segments which saw underwriting profits being made in this quarter.
Underwriting profits were ₹92 crore in the first half of the fiscal against an underwriting loss of ₹474 crore in the corresponding period last year.
GIC Re has a 60 per cent market share and expects to maintain the market leadership, she said. GIC Re is ranked the 12th largest global re-insurer.
Agricultural insurance, with the introduction of the Prime Minister’s Fasal Bima Yojana, has been a key driver of growth. This rose 96 per cent to ₹11,091 crore in the first half. She said that the international primary insurance sector is expected to grow 4.5 per cent during 2017 and 2018. The impact of recent hurricanes Irma, Harvey and Maria is expected to cause losses for all re-insurers to the tune of about $100 billion, she said.
While not quantifying the exact loss that GIC Re would bear on account of these catastrophes since the assessments are still being made, she said that the net loss for the company would be limited to $15 million (₹100 crore) for each event. She said that the combined ratio for the company is 99.4 per cent for the half year, compared with 99.1 per cent for H1 FY17.
General Insurance Corp. of India Ltd (GIC Re) today reported over five-fold jump in standalone net profit to Rs1,419.11 crore for the September quarter. This is first quarter for which the reinsurance firm has reported results after being listed last month.
GIC Re had clocked a net profit of Rs251.79 crore in the July-September quarter of the previous fiscal. “The profit for the period includes prior income of Rs175.73 crore on account of retro income of marine insurance business,” it said.
GIC Re is the largest reinsurance company in the country in terms of gross premiums in 2016-17, while accounting for almost 60% of the premium ceded by Indian insurers to the company.
Total income of the company grew to Rs10,714.69 crore for the second quarter as against Rs7,415.55 crore in the same period of previous fiscal, GIC Re said in a regulatory filing to exchanges. The net premium written during the quarter stood at Rs5,865.89 crore compared to Rs9,438.12 crore a year ago.
The company said after the initial public offer (IPO) of the corporation, the number of equity shared increased from 86 crore to 87.72 crore and percentage of government holding reduced to 85.78%.ENDS
