GIC Re's gross prm rises by 11 % to Rs 20,813, net profit falls by 85 % to Rs 108.60 crore in Q1FY 2019-20
The reduction in the profitability of the company is on account of provisioning of IL&FS and reduction in other income such as exchange gains, said GIC Re.
State owned listed reinsurer GIC Re has seen its gross premium rising by 11 per cent to of Rs 20,813.12 crore while its net profit has plummeted by 85 per cent to Rs 108.60 crore during first the quarter ended in June 30 as compared to Rs 771.42 crore in corresponding quarter of previous year.
The reduction in the profitability of the company during Q1FY 2019-20 is on account of provisioning of IL&FS and reduction in other income such as exchange gains, said GIC Re.
The reinsurer has managed to keep its Combined Ratio at 102.6 per cent( 99.9 per cent) in the reporting quarter though the underwriting losses of the reinsurer has hit Rs 854.37 crore(Rs 96.37 crore) during the period.
The company recorded profit before tax of Rs 138.90 crore in first quarter FY 2019-20 against Rs 1,029.74 crore in the corresponding quarter of previous year. The company's provisions for doubtful debt rose to Rs 402.96 crore in Q1FY20 compared to Rs 57.74 crore a year ago.
The GIC Re’s investment income increased by 26.24 per cent to Rs 1,401.90 crore for Q1FY 2019-20 as compared to ₹ 1,110.53 crore for the corresponding quarter of previous year.
Total assets of the company increased by 6.31 per cent from Rs 121,136.83 crore as on 30.06.2018 to Rs 1,28,776.53 crore as on 30.06.2019.
The company had a solvency ratio of 1.89 as on 30th June 2019, which is above the minimum required Solvency Ratio of 1.50.The net worth of the company (without fair value change account) increased by 0.5 per cent to Rs 22,443 crore on 30.06.2019 from Rs 22,334 crore on 31.03.2019.
The GIC Re has almost earned 84 per cent of its total premium from the domestic market while the rest is from the international market.
At Rs 10,676.40 crore (Rs 10,696.2 crore ),the GIC Re has slightly degrown its agriculture portfolio in Q1 FY 2019-20 while it has grown its health portfolio aggressively by 71 per cent to Rs 2,402.62 crore(Rs 1,404.02) in Q1FY 2019-20.