Mumbai, June 29:
With a higher investment income, state owned reinsurer GIC Re amidst Covid-19 pandemic, has seen its net profit rising by 5.25 per cent year on year(Y-O-Y) to Rs 1260.44 crore in last quarter(Jan-Mar) of FY 2021.
The listed reinsurer however has reduced its premium income,by over 4 per cent y-o-y to Rs 8,813 crore in the fourth quarter of FY 2021.
Total global gross premium of the company had fallen by 7 per cent to Rs 47,014.38 crore in Fy 2021 as it cut down its loss making crop portfolio by 40 per cent to Rs 9,198.63 during the year .
Though the reinsurer's combined ratio has improved to 103.9 per cent(107.6 per cent), GIC Re's underwriting loss has gone up by 15 per cent y-o-y to Rs 535 crore during the fourth quarter of Fy 2021.
The company's incurred claims ratio has also improved to 92.4 in the reporting fiscal as compared to 97.5 per cent in FY 2020.
The net investment income of the reinsurer has increased by 20 per cent y-o-y to R 2286 crore in the fourth quater of Fy 2021.For the whole of FY 2021, The company's net investment income has gone up by 24 per cent to Rs 8,820.86 crore in FY 2021.
Total assets of the company has swelled up to Rs 1,34,661.22 crore in Fy 2021 as compared to Rs 1, 16,196.20 crore in the previous fiscal.
Net Worth of the company (without fair value change account) recorded at Rs 22,452.34 crore in FY 2020-21 as against Rs 20,529.45 crore in FY 2020.
Net Worth of the company including fair value change account recorded at Rs 49,643.19 crore as against Rs 35,425.87crore in FY 2021.
Solvency Ratio of the company improved to 1.74 as on 31.03.2021, as compared to 1.53 as on 31.03.2020.
With a domestic premium of Rs 30,009.93 crore, down by 17 per cent, the global reinsurer, has shrunk its India market exposure to 63.8 per cent in Fy 2021 from 71 per cent in Fy 2020.
However, it has expanded its international market exposure, at Rs 17,000 crore, up 15 per cent, to 36 per cent in 2021 from 29 per cent in Fy 2020.
Apart from crop, its second largest portfolio, in line with overall trend in Indian market, the reinsurer has seen its motor premium, its third largest portfolio, slowing down by 6 per cent to Rs 8846 crore in Fy 2020-21.
The company has majorly grown its life portfolio by 31 per cent Rs 1254 crore jn FY 2021.
The company's fire portfolio, its largest business, has grown by 17 per cent to Rs14,123 crore in 2021
Shares of the company on Tuesday closed at Rs 204.20 apiece on the BSE, up by 2.85 per cent..
GIC Re's group includes subsidiary companies namely, GIC Re South Africa, GIC Re Corporate Member, London, and GIC Perestrakhovanie LLC, Moscow.The group also includes three associate companies namely GIC Re Bhutan, India International Insurance Pte Ltd, Singapore.
The pandemic has created significant uncertainties in regard to the growth trajectory, said GIC Re .
On the operational side, the business could be continued essentially through work from home across the globe by the insurers, intermediaries and reinsurers.
On the financial side, the uncertainties remain in regard to its impact on business and economic growth and its resultant impact on premium volume, particularly from small and medium size industries.
There could be some shrinkage of purchase of insurance with a potential for cascading effect on reinsurance. The specialty classes of business such as event cancellation, travel, credit / surety / mortgage, agriculture, directors & officers, and business interruption are expected to get adversely affected, cautioned GIC Re,.