General Insurance Corp posts 42% rise in bottom line

General Insurance Corporation of India (GIC), the designated national reinsurer, has reported a 41.75 per cent growth in net profit to Rs 1,407 crore in 2008-09 against Rs 992.7 crore in 2007-08.

During the previous financial year, GIC’s net earned premium income jumped 18.71 per cent to Rs 7,402.3 crore as against Rs 6,575.80 crore in 2007-08.

Its gross premium income rose marginally by 1.4 per cent to Rs 8,061.13 crore. While the company’s non-obligatory business went up by 17 per cent, foreign business was up 40 per cent. Its solvency margin went up to 3.67 per cent in 2008-09 compared with 3.36 per cent in 2007-08.

On the back of a general increase in claims for the domestic market, net incurred claims rose 35.65 per cent to Rs 6,217.1 crore in 2008-09 from Rs 4,582.95 crore in 2007-08. According to a senior GIC executive, fire, health and motor claims have increased post-detariffing. GIC paid Rs 90 crore for claims related to the 26/11 terror attacks on Mumbai heritage hotels. In 2008-09, the corporation paid Rs 450 crore in aviation claims.

Income from investments stood at Rs 1,785.8 crore in 2008-09, while total investments stood at Rs 21,714 crore.