State run re-insurer General Insurance Corporation of India (GIC Re) reported a net profit of ₹987.42 crore for the third quarter of the fiscal as against a net loss of ₹1,069.64 crore for the same period last fiscal.

For the quarter ended December 31, 2020, GIC Re reported gross premium written of ₹11,668.51 crore, a 1.1 per cent increase over ₹11,539.96 crore of gross written premium a year ago.

Underwriting loss for the third quarter 2020-21 is recorded at ₹1,022.64 crore as against underwriting loss of ₹2,749.44 crore in the corresponding period last fiscal.

Solvency ratio increased to 1.53 as on December 31, 2020 as compared to 1.51 a year ago.

Combined ratio stood at 108.5 per cent at the end of the third quarter this fiscal versus 130.4 per cent a year ago. “As compared to the second quarter, there is a growth in business volume during the third quarter of 2020-21,” GIC Re said in a statement on Thursday.

It added that though the Covid-19 pandemic continues to influence the insurance industry, the severity of the impact is gradually reducing and is reflected in the results of the industry.

Financials

“GIC Re’s financials for the nine months ended December 31, 2020 have shown indications of positivity and signals turnaround in the near future,” it further said, adding that the underwriting performance is expected to show better trends going forward.

GIC Re’s international business has shown a growth rate of 23 per cent.

Published on February 11, 2021