With higher premium and better claim ratio,the net profit of GIC Re, the state owned reinsurer, at Rs 771.42 crore, has almost doubled in Q1 2018-19 over Rs 390.11 crore in in the year-ago quarter.The GIC Re’s underwriting losses have fallen drastically to Rs 96.37 crore in Q1 FY2018-19 as against Rs.658.47 crore in Q1 FY 2017-18.
The reinsurer, with a market share of 60 per cent in the India reinsurance market, has seen its gross premium income rising by 9.3 per cent to Rs 18,791.45 crore in the first quarter of 2018-19, from Rs 17,194.76 crore in Q1 2017-18.
The company has shown also shown remarkable growth of 163 per cent in profit before tax at Rs 1,029.74 crore in the reporting quarter against Rs 391.37 crore in the first quarter of FY 2017-18.
The GIC Re’s share price has soared by 12 per cent to Rs 375.20 on Monday trading in the BSE.
Alice Vaidyan , CMD, GIC Re had earlier said “We are the leader in the Indian reinsurance market and has 60 per cent of the market share despite the presence of almost all global players in the market. We are growing at 25 per cent while the Indian industry is growing at 17 per cent. I am bullish about the growth and profitability prospects for the GIC Re in coming years. The domestic market is increasingly providing larger opportunities while our international operations will get boost by our new syndicate that has already started operations in Lloyd’s of London,’’.
The ratio between domestic and international business for the GIC Re is at 85:15 in the reporting quarter.
The investment income of the GIC Re in Q1 2018-19 was at Rs 1,111.31 crore as compared to Rs 1163.02 crore in the quarter ended June 2017.
The total assets of the company increased by 15 per cent to Rs 121,747.89 crore as on June 30,2018 from Rs 1,05,823.99 crore as on June 30, 2017.
The Agri portfolio as a part of Prime minister Fasal Bima Yojana(PMFBY) at Rs 10,696.27 crore, up 7.8 per cent, has contributed maximum premium to to the GIC Re’s kitty in Q1 2018-19.
The Fire portfolio at Rs 2,645.83 crore, up 2.7 per cent, is the second highest premium grosser of the the company during the reporting period.
The Motor portfolio at Rs 2,036.33 crore has risen by 16.6 per cent while the health portfolio has gone up by 3.7 per cent to Rs 1,404.02 crore in Q1 2018-19.
The net worth of the company (without fair value change account) increased by 21.6 per cent to Rs 22,297.66 crore as June 2018 versus Rs 18,336.91 crore on June. 2017.
Growth in the GIC Re’s net worth (including fair value change account) was 3.86 per cent at Rs 52,254.06 crore on June 30, 2018 as against Rs 50,309.62 crore as on June, 30 2017.
Return on Equity (ROE)(unannualized), is 3.5% in the quarter ended June 30,.2018 compared to 2.1 per cent in the quarter ended June 30,.2017.
The company has a solvency Ratio of 1.77 as on 30th June 2018, which is above the minimum required Solvency Ratio of 1.50.
The GIC Re's earnings per share (EPS) increased from Rs.4.54 for the quarter ended 30.06.2017 to Rs.8.79 for the quarter ended 30.06.2018.