“Despite having nine catastrophic events, which have added Rs 3,300 crore of losses for GIC Re, we had a profitable year in Fy 24. As a matter of strategy, we have increased our domestic premium by almost 15 per cent in Apr 1 renewals while going slow in mobilising premium from overseas markets during Jan 1 renewals. We are now ready to support Indian economy in a bigger way with a much better profitability,” said N Ramaswamy, CMD, GIC Re
Mumbai:
With an underwriting profit and positive combined ratio, state owned GIC Re has recorded a net profit of Rs 2,642 crore for fourth quarter ended March 2024.as compared to Rs2,564 crore in the year-ago period.
The board of GIC Re, which met on Tuesday to finalise its annual results, has declared a dividend of Rs 10 per share with a face value of Rs 5.
Continuing its top line growth, GIC Re, the 16th largest reinsurer with global operations, has grown its gross premium by almost 20 per cent year- on –year(Y-O-Y) to Rs 8,723 crore in the reporting quarter.
“Despite having nine catastrophic events, which have loaded Rs 3,300 crore of losses for GIC Re, we had a profitable year in Fy 24. As a matter of strategy, we have increased our domestic premium by almost 15 per cent in Apr 1 renewals while going slow in mobilising premium from overseas markets during Jan 1 renewals. We are now ready to support Indian economy in a bigger way with a much better profitability,” said N Ramaswamy, CMD, GIC Re.
GIC Re, which competes with 11 foreign reinsurance branches (FRBs) in India, leads most of the domestic companies’ treaty programmes and facultative placements.
Asia’s third largest reinsurer has maintained its underwriting profit at Rs 570 crore in Q4FY 24 as compared to Rs 892 crore in the same quarter in FY 23.
The combined ratio of the reinsurer, at 89.26 per cent, has remained in a positive zone during Q4 FY 24 as compared to 89.15 per cent in Q4FY23.
The incurred claims of GIC Re during the reporting quarter have fallen by 11 per cent y-o-y to Rs 4,982 crore in Q4 FY24.
The investment income of the company has risen to Rs 2,971 crore in Q4FY24 as compared to Rs 2,897 crore in Q4FY 23.
Its solvency ratio was 3.25 as on 31.03.2024 as compared to 2.61 as on 31.03.2023.
FY 24
GIC Re’s net profit was a record at Rs 6,497.30 crore in FY24 as compared to Rs 6312.50 crore in FY 23. Its incurred claims ratio in FY was is 92.07 per cent as compared to 90.88 per cent in FY 23.
Gross premium income of the company was at Rs 37,181.76 crore in FY 24 as compared to Rs 36,591.59 crore in FY 23. It has earned 69 per cent of its premium from the domestic market. The reinsurer has expanded its premium base in Motor, Health, Marine Cargo and Life portfolios while reducing its exposure in Crop and Marine Hull business during FY24.
The reinsurer’s total assets surged by 13 per cent y-o-y to Rs 1,78,285.82 crore in FY 24.
Net Worth of the company (without fair value change account) recorded at Rs 37,581.78 crore on 31.03 .2024 as against Rs 32,356.08 crore as on 31.03.2023.