GIC Re profit nearly doubles to Rs 771cr in Apr-Jun

General Insurance Corporation of India (GIC Re) today reported around two-fold jump in net profit at Rs 771.42 crore for the first quarter of 2018-19 compared to the year-ago period.

The company had posted a net profit of Rs 390.11 crore for the corresponding April-June period of 2017-18.

Gross premium income of the company grew 9.3 per cent to Rs 18,791.45 crore for the quarter ended June 2018 against Rs 17,194.76 crore in the previous quarter ended June 2017, GIC Re said in a release.

The company's underwriting loss in the first quarter of this fiscal reduced to Rs 96.37 crore from Rs 658.47 crore in the year-ago period.

The net worth of the insurer grew by 3.5 per cent in the June quarter to Rs 52,254.06 crore from Rs 50,309.62 crore, it said further.

The solvency ratio of 1.77 per cent as on June 30, 2048 is above the minimum required solvency ratio of 1.50, it added.

The earnings per share (EPS) increased to Rs 8.79 for the quarter from Rs 4.54 in the same period of 2017-18.

In a break-up of the gross premium, the company registered 2.7 per cent growth in fire insurance during April-June 2018-19, while in miscellaneous category including motor, health, agriculture and others there was a rise of 11.2 per cent year on year.

In marine and life, the company witnessed a decline of 5.8 per cent each.

GIC Re said the global economic environment is a key driver for insurance markets and the worldwide, insurance premiums are expected to grow at about 3 per cent in next couple of years.

"A major growth engine for this sector will be the emerging markets, with their economic growth significantly higher than global average. The general insurance business in India continues to grow at a healthy rate. Penetration remains low at under 1 per cent, and this is an area of great opportunity," the company said.

With government push towards improving insurance coverage and health scheme Aayushman Bharat on the anvil, GIC Re can be expected to benefit from emerging opportunities in health segment, it added.

"Consolidation of public sector companies as envisaged by the government should further improve the pricing discipline in the market," GIC Re said.

The company said it expects the reinsurance premiums to touch Rs 70,000 crore by 2022.

Total assets increased by 15 per cent to Rs 1.22 lakh crore as on June 30, 2018 from Rs 1.06 crore by same period of 2017.

Stock of the company jumped 12.14 per cent at Rs 375.05 on BSE.