GIC Re announces Financial Performance for the Nine Months Ended December 31, 2019

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GIC Re records growth of 15.7 % in Gross Premium y-o-y

Total Assets increased by 7.66 % y-o-y

Mumbai, February 10, 2020: GIC Re declared its financial performance for the nine months ended December 2019, at the board meeting of the company held in Mumbai today.

Against the backdrop of severe claims worldwide during the year 2019-20, higher agriculture claims and flood claims in various parts of India, in the quarter ended 31.12.2019 underwriting performance resulted in underwriting loss to the Corporation.

Given the steps taken by the Corporation in revising premium rates for fire segment based on Insurance Information Bureau statistics, the fire segment is now on a sound footing. Coupled with global overall hardening of pricing environment, the financial results for Q4 is expected to improve. Alongside, the corporation also pruned the portfolio based on more stringent profitability criteria.

We give below details of our financial performance for the nine months ended 31.12.2019:

  • Growth in Gross Premium Income of the company was 15.7 % with premium of ₹41,812.29 crore for the nine months ended 31.12.2019 from ₹ 36,148.65 crore in corresponding period of previous year.

·      Investment Income for the nine months period ended 31.12.2019 was increased to ₹ 5,216 crore as compared to ₹ 4,802.45 crore for the nine months ended 31.12.2018, showing a growth of 8.61%

·      Net Worth of the company (without fair value change account) recorded as ₹ 19,350.67 crore on 31.12.2019 as against  21,720.89 crore on 31.12.2018.

·      The company recorded Loss before tax of ₹ 1,547.06 crore in nine months ended 31.12.2019 as against Profit before tax of Rs ₹2,239.74 crore in the corresponding period of previous year. The reduction in profit is on account of provisioning for investments and increase in agriculture losses.

·      Loss After Tax for the nine months period ended 31.12.2019 recorded as  1,556.50 crore as compared to Profit after Tax of ₹ 1,620.94 crore for the nine months ended 31.12.2018.

·      Total Assets increased by 7.66 % from  119,367.26 crore as on 31.12.2018 to   1,28,509.76 crore as on 31.12.2019.

·      Incurred claims Ratio increased from 91.8 % in the nine months ended 31.12.2018 to 99.1% in the nine months ended 31.12.2019.

·      Underwriting Loss recorded ₹ 5903.60 crore in nine months ended 31.12.2019 as against loss of  ₹ 2,312.62 crore in corresponding period of previous year.

·       Combined Ratio is 115.76 % for the nine months ended 31.12.2019 as compared to 107.62 % for the corresponding period of previous year.

·      Adjusted Combined Ratio is 104.97% for the nine months ended 31.12.2019 as compared to 96.96 % for the corresponding period of previous year.

·      Solvency Ratio of 1.51 as on 31st December 2019.

Sr No

Particulars

Nine Months ended 31.12.2019

 

Half Year ended 30.09.2019

Nine Months ended 31.12.2018

Year Ended     31 March, 2019

1

Gross Premium

41,812.29

30,272.33

36,148.65

44,238.00

2

Net Premium

38,215.52

28,442.76

33,221.19

38,995.97

3

Earned Premium

36,476.66

28,648.19

32,622.80

37,679.08

4

Incurred Claims

36,148.44

27,661.77

29,956.63

33,739.95

5

Incurred Claims Ratio (on earned premium)

99.1%

96.6%

91.8%

89.5%

6

Net Commission

6,089.09

3,968.50

5,057.75

6,105.43

7

Net Commission Percentage (on Net Premium)

15.9%

14.0%

15.2%

15.7%

8

Expenses of Management

281.58

228.73

188.99

256.07

9

Expenses of Management Ratio (on net premium)

0.7%

0.8%

0.6%

0.7%

10

Profit/(Loss) on Exchange

171.27

105.32

272.81

216.18

11

Premium Deficiency

32.42

48.79

4.86

5.29

12

Underwriting Profit/(Loss)

(5,903.60)

(3,154.28)

(2,312.62)

(2,211.46)

13

Investment Income

5,216.00

3,197.01

4,802.45

6,401.34

14

Other Income less Outgoings

(859.46)

(523.86)

(250.09)

(756.06)

15

Profit / (loss) Before Tax

(1,547.06)

(481.13)

2,239.74

3,433.82

16

Provision for Taxation

9.44

5.73

618.80

1,209.51

17

Profit / (Loss) After Tax

(1,556.50)

(486.86)

1,620.94

2,224.31

18

Combined Ratio %

115.76%

111.3%

107.6%

105.9%

 

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