As a result of tight underwriting practices in recent years, the third largest Asian reinsure has managed a better combined ratio and lower underwriting losses in Fy 2022-23
Mumbai:
Returning to profitability, state owned reinsurer GIC Re’s net profit has zoomed to Rs 1.200.71 crore in Q3 FY 2022-23. The reinsurer had a loss of Rs 28.48 crore in Q3 FY 2021-22.
Its gross premium has marginally fallen to Rs 10,100 crore in the reporting quarter as compared to Rs 10,100 crore in the corresponding quarter of FY 2021-22.
The reinsurer’s combined ration improved from 126.54 per cent in FY 2021-22 to 116.22 per cent in FY 2022-23 while its underwriting losses plummeted by more than 34 per cent to Rs 1,54.322 crore in Oct-Dec quarter of Fy 2022-23 over Rs 2,35,854 crore in the year ago period.
Similarly, GIC Re’s incurred claim ratio dropped from 121.90 per cent in Q3 FY 2021-22 to 96.90 per cent in Q3FY2022=23.
The company’s investment income has risen marginally to Rs 1,870 crore in Q3FY2022-23 from Rs 1,837 crore in the year-ago period.
Solvency Ratio of GIC Re is 2.38 as on 31.12.2022 as compared to 1.80 and 2.25 as on 31.12.2021 and 30.09.2022, respectively.
Its net premium income inched up to Rs 9,561.2 crore from Rs 9,332.56 crore but earned premium declined to Rs 8,648.76 crore from Rs 8,907 crore.
The bottom line was saved by a fall in incurred claims during the quarter, which declined by more than a quarter to Rs 8,380.50 crore from Rs 10,857.83 crore, according to the company.
The net worth of the company (including the fair value change account) was Rs 61,616.80 crore as of December 2022 against Rs 53,723 crore at the end of the third quarter of the previous fiscal.
Profit for the nine months ended December 2022 was Rs 3,749.15 crore compared to a profit after tax of Rs 210.34 crore a year ago.