Devesh Srivastava, CMD, GIC Re
GIC Re’s record net profit has been possible as the third largest Asian reinsurer has a combined ratio of 89.16 per cent and an underwriting profit of Rs 889.77 crore along with a higher investment income of Rs 3,667.16 during the reporting period
“GIC Re is on its own steam now, chugging to its destination of being a stable, long term player, consolidating the Indian market,’’ said Devesh Srivastava, CMD, GIC Re
GIC Re has continued its overall restructuring of its balance sheet to remain profitable by further reducing its gross premium by 30 per cent year on year(y-o-y) to Rs 7,370 crore in Q4FY2023
Mumbai:
In a record breaking performance, with a positive combined ratio and underwriting profit, State owned GIC Re at Rs 3,417.07 crore has almost doubled its net profit in Q4 FY 2023.
It had a net profit of Rs 1,794.68 crore in Q4 FY 2022.
The reinsurer’s board has approved the highest ever dividend of Rs 7 per share of Rs10 in FY23.
“GIC Re is on its own steam now, chugging to its destination of being a stable, long term player, consolidating the Indian market,’’ said Devesh Srivastava, CMD, GIC Re.
GIC Re’s record net profit has been possible as the third largest Asian reinsurer has a combined ratio of 89.16 per cent(74.30 per cent in Q4FY2022) and an underwriting profit of Rs 889.77 crore ( Rs 2,313.47 in Q4FY 2023) along with a higher investment income of Rs 3,667.16 ( Rs 2,826.59 in Q4 FY 2023) during the reporting period.
Any combined ratio of less than 100 per cent for any reinsurer and general insurer mean, the company’s outgo, consisting of claims and expenses for procuring the business, is less than the premium it has earned.
The company’s incurred claim ratio has gone up to 73.7 per cent in Q4FY 2023 from FY 50.3 per cent in the year ago period.
GIC Re has continued its overall restructuring of its balance sheet to remain profitable by further reducing its gross premium by 30 per cent year on year(y-o-y) to Rs 7,370 crore in Q4FY2023.
Indian market has contributed almost 69 per cent of GIC Re’s premium kitty and the rest have been mobilised from the international markets during Fy 2023.
Though GIC Re gets four per cent mandatory obligatory business, it competes with 11 global reinsurers which have set up branches in India(known as FRBs) and cross boarder reinsurers(CBR) for domestic business valued around Rs 70,000 crore.
For the entire FY 2023, GIC Re has reduced premium Income by 15 per cent y-o-y to Rs 36,591.59 crore.
Except Fire, Health and Life, the reinsurer has reduced its exposure to rest of portfolios including Crop, Marine and Motor in FY 2023. Its Crop portfolio has fallen by almost 40 per cent to Rs 5,000 crore in Fy 2023.
Solvency Ratio of the company was at 2.61 as on March 31, 2023 as compared to 1.96 as on March 31,2022.
The company has a total assets of Rs 1,57,124.60 crore as on March 31, 2023 as compared to Rs1,44,887.37 crore as on March 2022.
Net Worth of the company (without fair value change account) recorded at Rs 30,306.58 crore on 31.03.2023 as against Rs 24,439.72 crore as on 31.03.2022. Net Worth of the company (including fair value change account) recorded as Rs 61,700.11 crore on March 31, 2023 as against Rs 55,657.73 crore as on March 31,2022.