Mumbai:
Due to severe claims worldwide during the year 2019-20, higher agriculture claims and also flood claims in various parts of India,state owned GIC Re has suffered a net loss Rs 486.86 crore in H1 2019-20 compared to a net profit of Rs1,285.27 crore in the year-ago period.
GIC Re announced financial performance for the half year ended September 30, 2019 at a board meeting of company held in Mumbai today.
With premium of Rs 30,272.33 crore, the reinsurer’s growth in gross premium income was 11.6 per cent for H1 2019-20 compared to Rs 27,117.40 crore in the corresponding period of previous year.
Underwriting Loss (inclusive of exchange gain) of the company was at Rs 3154.28 crore in half year ended Sept 30 , 2019 as against underwriting loss of Rs. 2,098.19 crore in corresponding period of previous year.
The combined ratio of the company is 111.30 per cent in the half year ended Sept30,2019 as compared to 110.30 per cent for the corresponding period of previous year.
Adjusted combined ratio of ghe company is 102.56 per cent for the half year ended Sept 30,2019 as compared to 100.64 % for the corresponding period of previous year.
According to the company, in quarter ended hurricane activities during the second quarter of FY 2019-20 put pressure on reinsurer's results) though the premium will be earned in the second half of the year. Therefore, Q3 and Q4 should show better results due to increase in premium earnings.
However, going forward the trend of claims experience is expected to be better for the rest of the financial year 2019-20,said a press release from the company..
Investment Income of the GIC Re was at Rs 3,197.01 crore in the half Year ended Sept 30.2019 as compared to Rs 3,281.27 crore for the corresponding period of previous year.
The company recorded Loss before tax of Rs 481.13 crore in half year ended Sept 30,2019 as against profit before tax of Rs 1,285 crore in the corresponding period of previous year.
The reduction in profit is on account of provisioning of IL&FS (Ql), DHFL and reduction in other income such as exchange gains and provision for increase in agriculture losses.
Total assets of the company increased by 6.94 percent from Rs1, 17,895.37 crore as on Sept 30, 2018 to Rs1,26,080.50 crore as on Sept 30 , 2019.
Solvency Ratio of 1.60 as on 301h September 2019, which is above the minimum required Solvency Ratio of 1.50.
Net Commission percentage on net premium of the comoany improved to 14 percent as against 15.3 per cent of corresponding period of previous year.
Net Worth of the company (without fair value change account) of Rs 20,419.69 crore on Sept 30 2019 from :t' 21,297.78 crore on 30.09.2018.