GIC Re Q1 net profit rises 98% to Rs 7.1 bn; gross premium income up 9.3%

General Insurance Corporation (GIC Re) has a posted a net profit growth of 98 per cent to Rs 7.1 billion for the quarter ended June 2018, as against Rs 3.9 billion in net profit during the same period in the last year.

Gross Premium Income has risen by 9.3 per cent, year on year, from Rs 172 billion in Q1 FY2018 to Rs 188 billion at the end of Q1 FY2019. While the amount of incurred claims has risen by 20.4 per cent from Rs 107 billion in Q1 FY2018 to Rs 129 billion in the first quarter of this fiscal. The total underwriting net loss has decreased substantially from Rs 6.58 billion for the three months ended June 2017 to Rs 964 million during the quarter ended June 2018. Compared to same quarter last fiscal, the underwriting loss for the Fire reinsurance business has increased from Rs 119.7 billion in Q1 FY2017 to Rs 240 billion as at the end of the quarter.

Agriculture reinsurance underwriting losses have also worsened from Rs 250 million loss in Q1 FY2017 to Rs 11.9 billion in underwriting losses at the end of the last quarter. Similarly, the underwriting loss for the aviation, marine cargo, personal accident, life insurance and motor segments has worsened.

Engineering reinsurance has seen a substantial turnaround from an underwriting loss of Rs 25.5 billion in Q1 FY2017 to an underwriting profit of Rs 109.14 billion as of Q1. While the health reinsurance business has grown from Rs 114 billion in underwriting losses as of Q1 FY17 to an underwriting profit of Rs 89.7 billion in the last quarter. 

Return on Equity has increased from 2.1 per cent as of June 2017 to 3.5 per cent.