Money & Banking

GIC Re Q2 profit falls 64% on underwriting losses

Our Bureau Mumbai | Updated on November 13, 2018

GIC-RE

State-owned re-insurer General Insurance Corporation of India (GIC Re) posted a sharp 63.8 per cent drop in its net profit to ₹513.84 crore for the second quarter of the fiscal due to higher underwriting losses.

Its net profit stood at ₹1,419.11 crore as on September 30, 2017, and it had also reported a 98 per cent rise in net profit for the first quarter of the fiscal at ₹771.42 crore.

GIC Re has also reported a near 29 per cent drop in net profit to ₹1,285.27 crore for the first half of the financial year 2018-19 as against a net profit of ₹1,809.22 crore a year ago.

The re-insurer’s underwriting losses amounted to ₹2,264.88 crore for the July-September quarter of this fiscal, as compared with a profit of ₹703.74 crore in the same quarter a year ago.

Its underwriting losses saw a sharp increase across almost all segments including motor, aviation, engineering, health and marine cargo.

However, its gross premiums written rose 15.5 per cent to ₹8,325.95 crore for the quarter ended September 30, as against ₹7,209.61 crore for the same period of 2017-18.

Total income rises

During the reporting quarter, its total income rose to ₹12,879.90 crore from ₹10,714.69 crore a year ago. “Other income includes forex gain of ₹164.87 crore for the half year ended September 30, 2018,” GIC said.

It had a solvency ratio of 1.73 at the end of the reporting quarter, which is in line with 1.72 a year ago. It is also well above the minimum required solvency ratio of 1.5 times.

The re-insurer’s shares fell 1.55 per cent and closed at ₹320.20 apiece on the BSE.

 

Published on November 13, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor