General Insurance Corporation of India (GIC Re), the national reinsurer, has reported a 10 per cent growth in net profit at ₹3,127 crore for FY17. Gross global premium grew 82 per cent to ₹33,585 crore.

The sharp increase in premium growth rates was on account of a special focus on crop insurance during the year.

GIC Re has proposed a dividend of ₹1,002 crore for 2016-17, a 17 per cent increase over the previous year.

Announcing the results, Chairman and Managing Director Alice Vaidyan said the company’s global rankings had improved to 12th in 2016 from the 14th position in 2015.

Overseas business

The premium was split between domestic and overseas business in the ratio of 69:31, she added.

Allaying fears about the impact of competition with entry of a couple of global reinsurers in the Indian market, she said GIC has a 48 per cent share in the domestic market and will not be affected by competition.

GIC will continue to be the dominant reinsurer, she said, but declined to give any forward looking statement on growth strategy as the corporation has initiated the process of launching its initial public offer (IPO). Citibank will be the lead bank for the IPO, while Axis Bank, Kotak Bank and Deustsche Bank will be the other merchant bankers for the share sale.

The Pradhan Mantri Fasal Bima Yojana (PMFBY) was a game-changer for the crop insurance segment, said Vaidyan. GIC booked a premium of ₹9,744 crore from the agri segment. Asked about the experience with the crop insurance portfolio, she said GIC provides reinsurance support to 18 domestic insurers and the portfolio has been profitable.

This was because it was done on the basis of actuarial pricing; they were short-term policies (kharif/ rabi crop); and there had been no major catastrophes or problems in that segment in the last year, Vaidyan pointed out.

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