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State-run re-insurer General Insurance Corporation of India (GIC Re) has reported a standalone net loss of ₹1,069.64 crore in the third quarter of the fiscal year against a net profit of ₹335.67 crore a year ago.
It also reported a loss after tax for the nine-month period ended December 31, 2019, at ₹1,556.50 crore.
“Against the backdrop of severe claims worldwide during 2019-20 and higher agriculture claims and flood claims in various parts of India in the quarter ended December 31, 2019, underwriting performance resulted in an underwriting loss to the corporation,” GIC Re said in a statement.
It expects improvement in finances in the fourth quarter, given that the fire segment is on a firm footing with revision in premium rates and overall hardening of pricing environment globally. “Alongside, the corporation also pruned the portfolio based on more stringent profitability criteria,” it said.
Gross premium written grew by 27.8 per cent to ₹11,539.96 crore in the third quarter this fiscal when compared to ₹9,031.25 crore a year ago. GIC Re reported an underwriting loss of ₹2,815.27 crore for the quarter under review. It had a solvency ratio of 1.51 as on December 31, 2019.
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