Mumbai:
Backed by a handsome investment income,amidst Covid-19 Pandemic, state owned GIC Re has turned profitable in Q2 FY 2021 by recording profit of Rs 230 .06 crore during the period against a loss of Rs 595.44 crore in the year-ago period.
Despite pruning its crop portfolio substantially, the Indian multinational reinsurer has recorded a gross premium of Rs 10,651.50, up 12.60 per cent year-on-year(Y-o-Y),in Q2 FY 2020-21.
However,the third largest Asian reinsurer has seen its underwriting losses, at Rs 2 159.35 crore, improving by six per cent y-o-y, in the reporting period.
Similarly its combined ratio has marginally improved from 123.46 per cent to 122.10 per cent during for the second quarter ended Sept 30.
The company's investment income has soared 54 per cent y-o-y to Rs 2767 crore in the reporting quarter.
GIC Re's financials for the half year ended 30th September 2020 have shown indications of positivity and signals turnaround in the near future, said GIC Re..
“Investment Income for the half year ended September 2020 has increased significantly. Our underwriting performance is expected to show better trends going forward and this will result in further strengthening of GIC Re's position,'' explained GIC Re.the 14th largest global reinsurer..
GIC Re's incurred claims have fallen by 26 per cent y-o-y to Rs 9 589.87 crore during Q2FY2020-21and its incurred claim ratio has improved to 101.0% in the reporting period as compared to 108.8 percent in the year ago period,
The reinsurer has reduced its domestic premium, at Rs 17,785.86 crore , contributing 67 per cent of its total premium kitty, by 25 per ent y-o-y in the first six months of the current fiscal.On the other hand, it has preferred to grow its overseas premium(inward) by 31.56 per cent y-o-y to Rs 8,747.18 crore, contributing 33 per ent of its total premium kitty, in H1 2020-21.
The company's incurred claims, at Rs 15,401.63 crore, led by losses of Rs 6,907.59 in crop business, has plunged by almost 30 per cent in H1 FY 2020-21 while its incurred claims,at Rs 7,056.97 crore, led by losses in fire portfolio of Rs 3,798.29 crore, has surged by 23 per cent in H1 Fy 2020-21
The reinsurer has grown its premiums in fire health,marine and life reinsurnace business while cutting down its exposure in crop, motor portfolios in H1 2020-21..
Total Assets of the reinsurer, were at Rs 1,26,167.89 crore in H1 FY 2020-21 as compared to Rs 1,26.080.50 crore in the year ago period.
Net Worth of the company (including fair value change account) recorded was at Rs 39,628.66 crore in H1 2020-21 as compared to Rs Rs 35,425.87 crore in the year ago period.
Solvency Ratio of the comoany increased to 1.63 as on Sept 30,.2020, as compared to 1.53 in theyear ago period.
Global scenario for insurance industry for the FY 2020-21 has shown weak trends due to COVID19 situation for most classes while benefitting a few. As compared to Q 1, there is a growth in business volume during Q2 FY21, said GIC Re.
Although Covid-19 influence remains on the insurance industry, severity of the impact is gradually reducing and the same is reflected in the results of the industry, explained GIC Re.