Mumbai:
With Covid-19 pandemic hitting global re/insurnace business, GIC Re, despite having a higher investment income, on Friday reported a year- on year(Y-o-Y) rise of 38 % in net losses to Rs 771.73 crore for the June 2021 quarter on the back of huge underwriting losses particularly in its life insurance portfolio.
The insurer had posted a net loss of Rs 557.47 crore in the year-ago quarter ended on June 30, 2020.
Its gross premium during April-June 2021 stood at Rs 14,289.92 crore, down from Rs 15,881.55 crore in the year-ago period, GIC Re said in a statement.
GIC Re's combined ratio, one of the key matrics indicating profitability of any re/insurer, is 123.36% for the quarter ended 30.06.2021 as against 112.16% for the corresponding quarter of the last fiscal ended 30.06.2020.
Underwriting losses of the reinsurer is Rs 2,811.17 crore for the quarter ended June 30, 2021, compared with Rs 1,771.38 crore for the quarter ended June 2020, showing a rise of it said.
Incurred claims ratio of the reinsurer is 107.4 % for the reporting quarter as compared to 94.9% for the year ago period.
Except agri portfolio, all other portfolios like fire, motor, health, hull, cargo, life, with negative combined ratio( any thing above 100 per cent is negative),were loss making Indian business for GIC Re.
Indian life reinsurance business for the reinsurer has a combined ratio of even 366 % during the reporting quarter.
Internationally, even crop business along with other line of business have been loss making business for GIC Re.
However, investment income of the group was Rs 1,809.43 crore for Q1FY 2020-21 compared to Rs 1,178.22 crore in the corresponding quarter quarter of FY 2020-21.
On a consolidated basis, there was a net loss of Rs 1,039.69 crore during the reported quarter, against Rs 497.07 crore loss a year ago.
The gross premium income stood at Rs 14,426.66 crore, against Rs 15,982.75 crore a year ago.
GIC Re's India business, at Rs 10,435.60,constituting 73.03 % of its business, has seen 12 per ent deceleration in Q1FY 2021-22. The reinsurer's international business has also fallen by 3.25 percent in th reporting quarter.
Except motor and marine hull, that have grown by 39.42 %and 27.28%, other portfolios like health, fire, crop, cargo and life have been slashed by the GIC Re.
Solvency Ratio of the company is 1.74 as on 30.06.2021 as compared to 1.52 as on 30.06.2020.Total Assets ofthe reinsurer are { Rs 1,42,454.14 crore as on 30.06.2021 as compared to { Rs 1,29,291.31 crore as on 30.06.2020). Net Worth of the company (without fair value change account) recorded at Rs 21,285.37 crore on 30.06.2021 as against Rs 9,714.81 crore as on 30.06.2020.
The company, which has closed down its largest overseas unit in Dubai last week, has global operations in South Africa, London and Moscow.