GIC Re posts 19.5% growth in net profit at Rs 2,694 cr

Gross premium income up 3.4% at Rs 15,183 crore in FY15

General Insurance Corporation of India (GIC Re), the sole domestic reinsurer has posted a 19.5 per cent rise in its net profit for FY15.

The reinsurer posted profit after tax of Rs 2693.7 crore in FY15 compared to Rs 2252.6 crore in FY14.

With respect to the Nepal earthquake that has claimed more than 5,000 lives and has destroyed crores worth of property, the reinsurer is still assessing claims.

The gross premium income stood at Rs 15,183 crore in FY15 compared to Rs 14,680 crore in FY14, a growth of 3.4 per cent.

The underwriting loss stood at Rs 1,335 crore for FY15 compared to Rs 887 crore in FY14.

A K Roy, chairman and managing director of GIC Re said that FY15 was a benign year since there were no catastrophic events. "The rise in profit was due to the market conditions and better investment income," he said.

They expect a 10 per cent rise in premium income for FY16.

With a niche talent on board, Roy also said that there is a case for differential pay for their personnel.

The investment income stood at Rs 4,253 crore for FY15 compared to Rs 3,482 crore in FY14.

GIC Re's net worth stood at Rs 13,002 crore at end of 2014-15 compared to Rs 10,969 crore at end of 2013-14.

The business mix stood at 57-43 respectively for domestic and global business. Roy said that they wish to bring it down to 50-50 in the future.

GIC Re is on track to enter the Lloyd's of London. Further, they are also working to operationalise the Indian Nuclear Insurance Pool, which Roy said has Rs 900 crore capacity at present and may be operational in a month. They also expect additional capacity to come into this pool.