GIC Re's net at Rs 672 cr in Q3FY 2018

`With 60 per  cent of the market share, we have maintained our leadership in the domestic market and would so in future despite competition arising out of presence of other major global reinsurers in India. We intend to bring down our combined ratio to below 100 per cent and wish to be the 10th largest reinsurer in the world at the end of the current fiscal,’’ said  Vaidyan adding that setting up a syndicate at Lloyd's of London, that will be starting its business in the new fiscal, will add to the international business of the GIC Re.

Alice Vaidyan, CMD,GIC Re at a media meet to announce the company's results on Monday in Mumbai

Mumbai:

Riding over higher business volume,investmment income, lower claims and underwriting losses, state owned reinsurer  GIC Re has reported a net profit of Rs 672.76 crore for the third quarter ended Dec, 2017 against a loss of Rs 401 crore in the  corresponding period of the previous fiscal.The reinsurer, that got listed with a mega initial public offering(IPO) of Rs 11,300 crore in Oct, 2017,has mobilised a gross premium of Rs 8,870 crores, up 8 per cent, during the reporting quarter, against Rs 8205 crore a year earlier. The GIC Re’s profit before tax during the reporting quarter is at Rs 788 crore as against a loss of Rs 500 crore in the corresponding quarter of the previous fiscal.

 

Announcing the results for the quarter ended Dec, 2017  on Monday, Alice Vaidyan, CMD, GIC Re, said the growth in the profit during the reporting quarter is due to combination of many factors like, prudent underwriting, business diversification, increased premiums, falling loss ratios and higher investment income.  

 

The Indian reinsurer's profit after tax (PAT) for the first nine months of the current fiscal was at Rs 2,481.99 crore, compared to a loss of Rs 554.82 crore a year earlier. The company's gross direct premium income touched Rs 33,274.35 crore, up 36.8 per cent, in the nine months ended Dec 2017 as compared to Rs 24,323.61 crore a year earlier.


``With 60 per cent of the market share, we have maintained our leadership in the domestic market and would so in future despite competition arising out of presence of other major global reinsurers in India.. We intend to bring down our combined ratio to below 100 per cent and wish to be the 10th largest reinsurer in the world at the end of the current fiscal,’’ said  Vaidyan adding that setting up a syndicate at Lloyd's of London, that will be starting its business in the new fiscal, will add to the international business of the GIC Re.

 

The reinsurer’s combined ratio- indicating reinsurer’s underwriting performance-has fallen to 101.1 per cent during the first nine months of the current fiscal as against 105.9 per cent in year ago period.

 

The  incurred claims ratio-measuring the total value of all claims paid by an insurance company divided by the premium collected in the same period- on earned premium of the reinsurer has fallen to 90 per cent in the quarter ended in Dec, 2017 as against 100.1 per cent in year ago period. It has paid  total claims amounting to Rs 600- crore during the reporting period.

 

The underwriting losses of the company is pegged at Rs 419 crore in the reporting quarter against Rs 1402 crore in year ago period.The investment income of the company  has risen by 35 per ent to Rs 1,195.59 crore against  Rs 884 crore in year ago period.

 

The reinsurer, which has relised higher premiums in Jan 1 renewal, has almost received 30  per cect of its business  from the international markets. The company has paid almost Rs 1900 crore of claims on account of large scale disasters in form of hurricanes like  Harvey, Irma, Maria(HIM) and Californian fires, Mexican earthquake, Peru loss, all put together during the fiscal 

in form of hurricanes-Harvey, Irma, and Maria(HIM) - that affected some parts of the US earlier during the fiscal..

 

Net Worth of the company (without fair value change account) increased by 35 per cent  to Rs 20,776.01 crore on 31.12.2017 from Rs 15,384.78 crore on 31.12.2016.The growth in net worth (including fair value change account) was 31.4 per  cent at Rs 54591.20 crore as against Rs 41,554.20 crore.

 

The  Return On Equity (ROE—Annualized), improved to 15.9 per  cent in the nine months ended 31.12.2017 compared to 4.8 per cent in the previous year showing a growth of 331.3 per cent The Solvency Ratio of 1.87 as on 31 December 2017, which is above the minimum required Solvency Ratio of 1.50 The investment assets (including fair value) increased by 24.9  per cent  from Rs 86,236.08 crore as on 31.12.2016 to Rs 107,671.95 crore a year earlier.

 

The  premiums for the company’s agriculture portfolio- the largest portfolio for the GIC Re-  recorded a growth of 72.7 per cent amounting to Rs 12,120.78 crore for the nine months ended Dec, 2017 as compared to Rs 7,019.43 crore year earlier.  The company has taken a hit Rs 927 crore in the agri portfolio during the reporting preriod.

 

The GIC Re's fire class of business grew by 20.1  per cent with a gross premium of Rs 6,978.57 crore for the nine months ended Dec 2017 as against Rs  5,809.94 crore for the corresponding period of  the previous year.


 

The reinsurer’s health portfolio premium amounted to Rs 4,042.32 crore in the nine months ended Dec, 2017 as against Rs 3,152.11 crore in the nine months ended 31.12.2016, posting an increase of 28.2 per cent .

 

The  reinsurer's motor business premium reflected growth of 27.6 per cent with gross premium of Rs 5,930.88 crore. The marine class of business of the company showed growth of 14.6 per cent over the previous year with gross premium of Rs 884.94 crore for the nine months ended Dec, 2017 as compared to Rs 772.10 crore a year earlier. .

 

The  life business of the company grew by 16 per cent  to Rs 332.84 crore in the nine months ended Dec 2017 from Rs 286.97 crore a year earlier.

 

GIC Re's share had opened at Rs  750 and ended at Rs744 in BSE on Monday that saw BSE sensex rising to 34,300.47, up 0.87 per cent

New Postings for GIC officials 

.N Ramaswamy, deputy general manager(DGM), has been posted as the DGM, GIC Re, London Branch.Charles Asirvatham, DGM, has joined as the DGM, GIC Re South Africa.Vishnu Salunkhe, assistant general manager, has been appointed as the head of GICRe's Malaysia Branch.

 

Sashikala Muralidhran has become the director and general manager of GIC Re.Uttam Kumar Sharma has been made deputy general manager of the company..   


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