State owned national reinsurer GIC Re with a total gross premium of Rs 27,117.40 crore has seen its net profit falling by 28 per cent to Rs 1,285.27 crore in H1 FY 2018-19 as compared to Rs 1,809.22 crore in the year ago period.
However sequentially, the net profit of the company,which is now ranked as the 10 largest global reinsurer, has gone up by almost 70 per cent over Rs 771.42 crore recorded for the first quarter ended June 30.
GIC Re's financial performance for the first six months was finalised by the board of the company on Tuesday held in Mumbai.
In view of the nature of reinsurance risks, the financial results for the half year are not indicative of full year's expected performance, said the company.
GIC Re at Rs 27,117.40 crore of gross premium income has recorded a growth of 11 per cent in H1 2018-19 over Rs 24,404.37 crore gathered in H1 2017-18.
The combined ratio, a key number in assessing the profitability of re/insurer, during the first half of the current fiscal was at 110 per cent as compared to 99.7 per cent the H1 FY 2017-18.
The Indian reinsurer had underwriting losses of Rs 2,098.19 crore in H1 FY 2018-19 as compared to a profit of Rs 91.75 crore in H1 FY 2017-18.
The incurred claims ratio (on earned premium) was at 94.3 per cent during H1 FY 2018-19 as compared to 82.7 per cent in H1 Fy 2017-18.
During the first of the current fiscal, GIC Re’s gross premium was in the ratio of 76:24 between its domestic and international business.
While the domestic premium at Rs 20,664 crore has gone up by 7.5 per cent,the international premium income at Rs 6454 has expanded by during H1 2018-19.
GIC Re’s profit before tax during H1 FY 2018-19 was at Rs 1,199.64 crore as compared with Rs 2309 crore in H1 2017-18.
The national reinsurer’s investment income((Net of Exp) at Rs 3,283.76 crore for the reporting period was higher by 36 per cent as compared to Rs 2,417.81 crore posted in H1 FY 2017-18.
The company's other income includes forex gain of Rs 16,487 lakh for the half year ended 30 September
Net worth of the company (without fair value change account) increased by 15 per cent to Rs 21,297.78 crore as on Sept 30,2018 compared to Rs 18,549.91 crore as on Sept 30.2017.
The company’s total assets increased by 10.7 per cent from Rs 107,034.55 crore as on Sep 30.2017 to Rs 118,502.88 crore as on Sep 2018.
The GIC Re’s growth in net worth (including fair value change account) was 3.6 per cent at Rs 51,266.29 crore on Sep 30 as against Rs 49,496.10 crore on Sept, 2017.
Return on Equity (ROE) (unannualized) of the company increased to 6 per cent for the half year ended Sep 30,2018 as compared to 3.5 per cent in the first quarter ended 30.06.2018.
The Solvency Ratio of the largest reinsurer in the country, was at 1. 73 as on September 30, 2018, which is above the minimum required Solvency Ratio of 1.50.
Though, agriculture portfolio, which had contributed massively to the GIC Re's premium kitty in recent years, at Rs 11,296.62 crore had remained flat, the reinsurer with Rs 5400 crore of fire portfolio and Rs 4439 crore of motor portfolio has grown both the portfolios by 25 per cent each in H1 FY 2018-19.