The Hindu Business Line : GIC Re posts lower underwriting losses

Mumbai, Sept. 26 General Insurance Corporation of India (GIC Re) has reported an underwriting loss of Rs 75.95 crore, substantially lower than the Rs 1,260 crore loss in the previous year. The high underwriting loss in 2006 was due to the Mumbai and Surat floods.

Mr R. Chandrasekaran, General Manager, GIC, said that it was not unusual for a reinsurer to show an underwriting loss as they work with a 2-3 per cent margin of profit. The net incurred claims in 2006-07 were to the tune of Rs 3,623 crore.

The incurred loss ratio in the 2006-07 was 69 per cent , compared to 102 per cent in the previous year.

GIC has, however, registered a growth of 156 per cent in net profit at Rs 1,531 crore in 2006-07, against Rs 598 crore in the previous year, due to profits made on investments. The income from investments showed a growth of 7.6 per cent at Rs 1,848 crore.

Ms B, Ramani, General Manager,said the corporation made an investment of Rs 4,000 crore in debt and Rs 5,200 crore in equity in 2006-07. The market value of the investments in equity stood at Rs 20,000 crore, she said.

The total assets stood at Rs 28, 524 crore (Rs 26,424 crore) while the total investments were at Rs 23,654 crore (Rs 22,134 crore).

GIC Re showed a 51 per cent growth in gross premium at Rs 7,404 crore (Rs 4,881 crore) while net premium also rose 51 per cent at Rs 6,421 crore (Rs 4,235 crore).

The corporation has also declared a dividend of 72 per cent amounting to Rs 309 crore, against Rs 86 crore in the year ago period. According to GIC officials, this is the highest dividend declared by the corporation.