Mumbai, Feb 11:
Despite Covid-19 pandemic disruptions, with all round profit-centric moves, GIC Re, the country’s sole PSU reinsurer, at Rs 987.42 , has returned to the path of profitability in the quarter ending in Dec 2020 as compared to a loss of Rs 1069.64 crore in the year-ago period.
The third largest Asian reinsurer had improved its combine ratio to 108.5 per cent during the reporting quarter as compared to 130.4 per cent in the yaer ago period.
As a conscious step to exit loss making portfolios, GIC Re has moderately grown its premium to Rs 11,668 crore in Q3 FY 2020-21 over Rs 11,539.96 crore in the year ago period..
Company’s incurred claims ratio, on earned premium, has drastically fallen to 89.6 per cent in the reporting quarter as compared to 108,4 per cent in the year-ago period.
The reinsurer also has seen a reduction of its underwriting losses from Rs 2,749.44 in Q3 2019-20 to Rs 1 022.64 in Q3 2020-21.
With a strong stock market revival in the country, the investment income of the company has surged by 30 per cent year on year(y-o-Y) to Rs 2 624.47 in Q3 2020-21 from 2019 crore in the year-ago period.
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. GIC Re's financials have shown indications of positivity and signals turnaround in the near future,said Devesh Srivastava, CMD, GIC Re.
“Our underwriting performance is expected to show better trends going forward and this will result in further strengthening of GIC Re's position,''said Srivastava
Nine months
GIC Re has particularly reduced its domestic premium by almost 20 per cent y-o-y to Rs 25 214 crore over Rs 36,233.84 in the first nine months of the fiscal,therby reducing its India exposure to 66 per cent from 75 per cent during the period.. At the same time, it has expanded its overseas business by 23 per cent y-o-y to Rs 12,987 crore over Rs10,547 crore during nine months ending in Dec, 2020,
The reinsurer has pruned its second largest portfolio, crop business , by 40 per cent to Rs 8,860 crore in the first nine months of the fiscal.
Except fire. marine, life and other line of business, GIC Re has reduced its exposure to its traditional lines business including health, motor
Fire portfolio , GIC Re’s largest portfolio has contributed Rs 11,270 crore of premium and has seen a 25 per cent growth in the first nine months of the FY 2020-21.