N Ramaswamy, CMD, GIC Re  

GIC Re has expanded its premium income by almost 40 per cent y-o-y to Rs 12,406 crore during the quarter ending in June 2024

`We now plan to push growth both in top line and bottom line.  Of course,  we are closely watching developments in the market to drive our strategy,’’ said N Ramaswamy, CMD, GIC Re.  

Mumbai: Registering an all round improvement in its financial parameters, state owned GIC Re’s net profit has surged by  almost 42 per cent year on year (Y-O-Y) to Rs 1036.36 crore in the first quarter ending in June, 2024.

Competing with 11 major global reinsurers and scores of cross boarder reinsurers (CBRs) in the domestic market, GIC Re, the largest reinsurer in India, has expanded its premium income by almost 40 per cent y-o-y to Rs 12,406 crore during the reporting quarter.

While almost doubling its domestic premium to Rs 10,361 crore, the third largest Asian reinsurer, has for the first time degrown its overseas premium by almost 40 per cent y-o-y  to Rs 2000 crore in q1FY 25.

`This is for the first time  in many quarters, GIC Re, which had undertaken extensive  restructuring of its business between Fy 2021 and 2023, has registered major growth in both top line and bottom line.

“We now plan to push growth both in top line and bottom line.  Of course,  we are closely watching developments in the market to drive our strategy,’’ said N Ramaswamy, CMD, GIC Re.  

The reinsurer’s underwriting  losses have declined by 21 per cent y-o-y  to Rs 1,288.53 crore in Q1 FY 25.

GIC Re’s combined ratio, an important matrix to assess the profitability of any reinsurer,  has improved to 109.60 per cent in the quarter ending in June as against 118.47 per cent in the year-ago  period.

Its incurred claims ratio has also fallen to 89.80 per cent in Q1FY25 from 95.10 per cent in the year-ago period

Investment income of the company has risen by 8 per cent y-o-y to Rs  2,758.99 crore in the reporting quarter.

The reinsurer, which is the 16^th largest international reinsurer, has seen its  total assets growing by 13 per cent y-o-y to Rs 1,86,552. crore in Q1FY25.

Indicating its strong financial muscle that can boost the reinsurer’s capacity further in Indian and international markets, it has now a robust  Solvency Ratio of  3.36 at the end of the Apr-June quarter as compared to 2.88 in the same quarter of the previous fiscal .

Net Worth of the company (including fair value change account) was  at Rs 85,926 crore as of June  2024 over Rs 69,650. crore in the year-ago period,

Except Motor and Marine Cargo, the reinsurer has grown rest of  its portfolios in major ways in Q1FY25. It has remained bullish in its Health portfolio, which has grown by over 500 per cent in the reporting  quarter and at Rs 2,876.80 crore has become the largest addition in the Q1fy25.

However, it has paid large claims of Rs1480 crore in this portfolio in the domestic market during Q1FY25 with a combined ratio of 122.44 per cent.

It has also, in many quarters, expanded its Crop portfolio, which has gone up by 200 per cent in Q1FY25 and has added almost Rs 2000 crore of premium to GIC Re premium. The reinsurer has also paid crop claims of Rs 1333 crore in the Indian market with combined ratio of 98.37 per cent in Q1FY25.

GIC Re has paid the highest domestic claims at Rs1668 crore in Fire portfolio that includes NAT Cat outgo with combined ratio of 110.81 per cent in Q1FY25.