The sole state-run reinsurer GIC Re today posted a near fivefold jump in net at Rs 1,419 crore for the quarter to September helped by better underwriting and higher growth in agriculture and marine segments.
The company, which went public during the quarter, had reported a net of Rs 251.79 crore in the year ago period. For the half year ended September, profit jumped 89.3 per cent to Rs 1,809.22 crore as against Rs 955.81 crore in the year ago period.
"The major segments that have turned profitable are agriculture and marine, but overall we've grown across segments," chairman and managing director Alice G Vaidyan told reporters here today.
The underwriting profit during the quarter was Rs 757.36 crore as against a loss of Rs 668.36 crore. Half yearly gross premium was Rs 91.75 crore compared to a loss of Rs 473.70 crore a year ago.
Gross premium came down to Rs 7,209.61 crore from Rs 10,176.68 crore for the quarter, while for the gross written premium was Rs 24,404.37 crore compared to Rs 16,118.37 crore.
The combined ratio for the half year was 99.4 per cent as against 99.1 per cent. The net premium written during the quarter stood at Rs 5,865.89 crore compared to Rs 9,438.12 crore a year ago.
The solvency ratio was at 1.72 in the half year period as against 2.92 per cent in the same period last year.
The company is also planning to reduce its total equity exposure from 20.7 per cent at present to 18 per cent going ahead.
Its stock ended at Rs 811.25, down 1.05 per cent on the BSE which closed at down 0.84 per cent.
Talking about Lloyd's Syndicate, which the company wants to be part of, Vaidyan said, "the process is underway for building up the Lloyd's and we are hoping that it will be completed by the end of this financial year."
She expects reinsurance rates to harden up going ahead as globally reinsurers are expected to incur losses on account hurricanes - Harvey, Irma, Maria that have caused estimated losses of over USD 100 billion.
"Internationally, all reinsurers have taken hit because of these losses and it is expected that reinsurance rates will go up," she said.
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