GIC Re's net profit at Rs1,620 in Apr-Dec period
The combined ratio of the reinsurer improved to 107.6 per cent for the nine months ended Dec 2018, in comparison to 110.3 per cent in of the half year ended in Sept 2018
Due to larger provisioning for bad debts and taxes,State owned reinsurer GIC Re has seen its profit after tax (PAT) of Rs 1,620.94 crore falling by 26 per cent in the nine months ended in Dec 31, compared to Rs 2,481 crore in the year-ago period .
GIC Re at Rs 36,148.65 crore has recorded a year- on- year (Y-o-Y) growth of nine per cent in its gross premium income in the first nine months of fy 2018-19 over Rs 33,274.35 crore in the corresponding period of the previous fiscal.
The combined ratio of the reinsurer declined to 107.60 per cent for the nine months ended Dec 2018, compared to 101.10 per cent in the year ago peiod. It had touched 128 percent the six mionths ended in Sep 2018. .
GIC Re's adjusted Combined Ratio (after considering the policyholders' investment income) works out to 97 per cent for the nine months ended Dec 2018.
The underwriting losses of the company has soared by 14 per cent to Rs 2,585.43 crore in the nine months ended in Dec 2018 from Rs 2,250.3 crore in the year ago period.
The reinsurer’s investment Income increased by 33 per cent to Rs 4,806.12 crore in the reporting period, as compared to Rs, 3,614.33 crore, in the corresponding period of the previous fiscal.
The total assets of GIC Re increased by 7.2 per cent to Rs 119,367.26 crore during the nine months ended in Dec 2018.
The company's net worth (without fair value change account) increased by 4.5 per cent to Rs 21,720.89 crore during the nine months ended in Dec 2018 from Rs 20,776.01 crore in the corresponding period of the previous fiscal.
The Solvency Ratio of the company improved to 1.84 per cent during the nine months ended in Dec 2018 as compared to 1.73 per cent in the year ago period.
GIC Re has total exposure of Rs 791.33 crore in IL&FS and other group companies, for which it has made a provision of Rs 78.88 crore, which is 10 percent of the total exposure. ILFS,reeling under a debt crisis, had default in September 2018. IL&FS that is has defaulted on several debt payments from June 2018 onwards.
At Rs 335.67 crore ,there was a 50 percent year-on-year (YoY) drop in GIC Re's net profit for the December quarter.
GIC Re's premium has gone up marginally to Rs 9,03,12.5 crore in Q32018-19 from Rs 8, 86,998 crore in the year ago period.
The reinsurer made a tax provision of Rs 704.43 crore in Q3 compared to Rs 115.22 crore in the year-ago period.
However, GIC Re, at Rs 16.46 crore, improved its underwriting losses in the December quarter, compared to a loss of Rs 293.10 crore a year ago and Rs 2,264.88 crore sequentially (Q2).
The combined ratio of the company improved to 97.96 percent in Q3 2018-19 compared to 105.36 per cent in the year-ago period.