GIC Re profit plunges 64 pc to Rs 514 cr in Q2

State-run General Insurance Corporation of India (GIC Re) Tuesday reported a decline of 64 per cent in net profit at Rs 513.84 crore for the second quarter ended September 2018.

The insurer had registered a net profit of Rs 1,419.11 crore in the July-September period of 2017-18.

Total income however grew to Rs 12,879.70 crore from Rs 10,714.69 crore in the September quarter of 2017-18, GIC Re said in a regulatory filing.

The company wrote a gross premium of Rs 8,325.95 crore during the reported period, up from Rs 7,209.61 crore in the same quarter a year ago.

GIC Re said its solvency ratio stood at 1.73 per cent as on September 30, 2018 which is above the minimum required solvency ratio of 1.50.

Total assets increased 11 per cent to Rs 1.19 lakh crore at September end from Rs 1.07 lakh crore in the year-ago same period, it said.

GIC Re said it has persistently maintained its leadership position in the Indian reinsurance market and the domestic business continues to grow at a healthy rate.

"Penetration remains low at under 1 per cent, and this is an area of great opportunity. Spurred by government initiatives such as PMFBY, crop insurance is the third largest line of non-life insurance business after motor and health insurance.

"With government push towards improving insurance coverage and health scheme Aayushman Bharat now operational, GIC Re can be expected to benefit from emerging opportunities in health segment," it said.

Further, the company said that listing of general insurers will bring greater bottom-line focus in the market. Consolidation of public sector companies as envisaged by the government should further improve the pricing discipline in the market.

Stock of the company closed down by 1.55 per cent at Rs 320.20 on BSE.