Economy

GIC Re net rises 465% in September quarter

Profits rose despite a drop in gross premium in the second quarter as the company's underwriting profits - the margin between premium income and claims expense - improved. The net premium written during the quarter stood at Rs 5,865.89 crore.

State-owned reinsurer General Insurance Corporation of India (GIC Re) posted profit after tax of Rs 1419.11 crore for quarter ended September 30, 2017 as compared to Rs 251.79 crore posted in same quarter last fiscal. She added that prices were hardening in the reinsurance market as a result of the losses caused by hurricanes in the US.

Underwriting profits were ₹92 crore in the first half of the fiscal against an underwriting loss of ₹474 crore in the corresponding period a year ago. GIC Re is ranked the 12th largest global re-insurer. Announcing the results on Monday, the company's chairperson Alice Vaidyan said that given the improvement in net profit, the company would consider an interim dividend.

GIC Re is the largest reinsurance company in the country in terms of gross premiums in 2016-17, while accounting for nearly 60% of the premium ceded by Indian insurers to the company. While insurance losses are expected to be $100 billion, she said that GIC Re's exposure is very low and may account for only $15 million in the balance sheet on a net basis.

The solvency ratio of 1.72 as on September 30 is above the minimum required solvency ratio of 1.50.

The agriculture class of premium recorded a growth rate of 96.2 per cent amounting to Rs 11,091.27 crore for half year ended September 2017, compared to Rs 5,654.47 crore in half year ended September 2016. The GIC scrip closed at ₹811.25, down ₹8.60 on the BSE on Monday.

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