Mumbai:
Shares of General Insurance Corporation of India on Wednesday jumped nearly 4 per cent after the company reported a consolidated net profit of Rs 1,991.59 crore for the financial year 2020-21.
The stock gained 3.57 per cent to Rs 211.50 on the BSE.At the NSE, it jumped 3.52 per cent to Rs 211.50.
It said that despite the handsome performance in FY21, the pandemic has created ''significant uncertainties'' on the growth front.
With a higher investment income, state owned reinsurer GIC Re amidst Covid-19 pandemic, has seen its net profit rising by 5.25 per cent year on year(Y-O-Y) to Rs 1260.44 crore in last quarter(Jan-Mar) of FY 2021.
The listed reinsurer however has reduced its premium income,by over 4 per cent y-o-y to Rs 8,813 crore in the fourth quarter of FY 2021 by reducing its loss making crop portfolio.
Total global gross premium of the company had fallen by 7 per cent to Rs 47,014.38 crore in Fy 2021 as it cut down its loss making crop portfolio, by 40 per cent to Rs 9,198.63 during the year .
With a combined ratio of 103.9 per cent(107.6 per cent), GIC Re's underwriting losses have gone up by 15 per cent y-o-y to Rs 535 crore during the fourth quarter of Fy 2021.
Combined ratio is one of the key parameter indicating profitability of a general re/insurer. Any figure above 100 means, the general re/reinsurer is ore claims than its total premium.
The company's incurred claims ratio has improved to 92.4 in the reporting fiscal as compared to 97.5 per cent in FY 2020.
The net investment income of the reinsurer has increased by 20 per cent y-o-y to R 2286 crore in the fourth quater of Fy 2021.For the whole of FY 2021, the company's net investment income has gone up by 24 per cent to Rs 8,820.86 crore in FY 2021.
Total assets of the company has swelled up to Rs 1,34,661.22 crore in Fy 2021 as compared to Rs 1, 16,196.20 crore in the previous fiscal.
Net Worth of the company including fair value change account recorded at Rs 49,643.19 crore as against Rs 35,425.87crore in FY 2021.
Solvency Ratio of the coampny improved to 1.74 as on 31.03.2021, as compared to 1.53 as on 31.03.2020.