General Insurance Corporation of India (GIC Re) on Monday reported over fivefold jump in net profit to Rs 1,419.11 crore for the quarter ended September 2017, as against Rs 252 crore in the year-ago quarter. The surge in profit was attributed to fewer claims, and higher premium collection from the agriculture segment.
Gross premium dipped to Rs 7,210 crore from Rs 10,177 crore in the same quarter last financial year. The drop was due to technical reasons, said the company. “In the September quarter of 2016-17, we had collected over Rs 5,800 crore from agriculture insurance, as the implementation of the scheme was delayed a bit. But now, as the agriculture scheme is established, we received around Rs 11,000 crore of the kharif premium in the June quarter itself,” said a senior official of GIC Re.
The agriculture class of premium recorded a growth rate of 96.2 per cent amounting to Rs 11,091.27 crore for half year ended September 2017, compared to Rs 5,654.47 crore in half year ended September 2016.
GIC Re, which got listed last month, posted underwriting profit of Rs 757.36 crore compared to underwriting loss of Rs 668.36 crore in the same period last financial year.
“The major segments that have turned profitable are marine and agriculture. But overall also, we have grown across the segments and this has resulted in underwriting profits,” said Alice G Vaidyan, chairman and managing director, GIC Re.
Going forward, the reinsurance industry could see hardening of prices across segments due to the impact of hurricanes in the US. This could lead to higher reinsurance demand, said Vaidyan.
The net worth of the company increased 17.5 per cent to Rs 18,549.92 crore as on September 2017 from Rs 15,786 crore as on September last year. The combined ratio for the first six months of this financial year was 99.4 per cent, compared to 99.1 per cent for the half year ended 2016.
The share of GIC Re on Monday closed at Rs 811.25, down by one per cent over the previous close.