Devesh Srivastava, CMD, GIC Re
“We are targeting a Combined Ratio of 100 per cent and work is on progress to achieve it in the medium term. We are now purely looking for profitable business and the market is aware of our focus. Topline growth will happen but it has to be only healthier business ,” said Devesh Srivastava, CMD, GIC Re
Mumbai:
State owned GIC Re, which has further pruned its topline growth by 23 per cent, is back in black with a net profit of Rs 689.72 crore in Q1FY 2022-23 as compared to a loss of Rs 771.73 crore in the year-ago period.
GIC Re, one of the top 15 global reinsurers, has pruned its gross premium to Rs 11 ,021.83 crore in Q1 FY 2022-23 from Rs 14,289.92 crore in year-ago period.
its 75 per cent of premium is from Indian market while rest 25 per cent is from overseas markets and it has chopped off its business in both the markets in Q1FY23.
The listed reinsurer has improved its Combined Ratio (CR) to 110.97 per cent for the reporting quarter from 123.36 per cent in the corresponding quarter of FY 2021-22.
“We are targeting a CR of 100 per cent and work is on progress to achieve it in the medium term. We are now purely targeting profitable business and the market is aware of our focus. Topline growth will happen, but it has to be only healthier business,” said Devesh Srivastava, CMD, GIC Re.
Consequently, the company has managed to shrink its underwriting loss by 72 per cent y-oy to Rs 776.29 crore in FY Q1 2022-23
Adjusted CR, which is calculated after taking into account the investment income, of the company is at 97.01 per cent for the reporting quarter as against 112.35 per cent in the year-ago period.
Investment income of the company has surged to Rs 1,890.43 crore in Q1 FY23 as compared to Rs 1,794.60 crore in the year-ago period.
GIC Re’s solvency ratio has significantly improved to 2.14 as on June 30 as compared to 1.74 as on June 30 2021.
Except health portfolio, which GIC Re has grown by 11 per cent y-o-y to Rs 717 crore, the reinsurer has pruned all other portfolios including crop where it has reduced its premium by 49 per cent y-o-y to Rs 2694 crore in FYQ1 23.
GIC Re’s total assets have swollen to Rs 1,46, 178.09 crore as on 30.06.2022 as compared to Rs 1,42,454.14 crore as on 30.06.2021. Net Worth of the company (without fair value change account) recorded at Rs 24,744.87 crore on 30.06.2022 as against~ 21,285.37 crore as on 30.06.2021. Net Worth of the company (including fair value change account) recorded at Rs 53,741.39 crore on 30.06.2022 as against ~ 50,673.76 crore as on 30.06.202 1
GIC Re share ended today at Rs 122 after rising by 55 paisa.