General Insurance Corporation of India (GIC Re) reported a consolidated net profit of Rs 228.40 crore in Q2 FY21 compared with net loss of Rs 652.60 crore in Q2 FY20.
Total income during the quarter declined by 12.7% year-on-year (YoY) to Rs 12,053.23 crore. The company reported a pre-tax profit of Rs 378.74 crore in Q2 September 2020 as against a pre-tax loss of Rs 697.81 crore in Q2 September 2019.
The consolidated financials of GIC Re Group includes those of subsidiary companies like GIC Re South Africa, GIC Re Corporate Member, London and GIC Perestrakhovanie LLC, Moscow. The group also includes three associate companies namely GIC Re Bhutan, India International Insurance pte, Singapore and Agriculture Insurance Company of India.
Global scenario for insurance industry for the FY21 has shown weak trends due to Covid-19 situation for most classes while benefiting a few. Although Covid-19 influence remains on the insurance industry, severity of the impact is gradually reducing and the same is reflected in the results of the industry. As compared to Q1, there is a growth in business volume during Q2 FY21, the company said in a statement.
On a standalone basis, GIC Re reported a net profit of Rs 230.05 crore in Q2 FY21 as against net loss of Rs 595.45 crore in Q2 FY20.
Net premium income rose 0.5% to Rs 8,846.07 crore while income from investments (net) jumped by 53.4% to Rs 2,190.16 crore in Q2 September 2020 over Q2 September 2019.
Incurred claims ratio declined to 101% in Q2 FY21 from 108.8% in Q2 FY20. The ratio is a measure of the net claims settled by an insurer in a financial year as against the total premium amount received in the same period.
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Pre-tax profit in Q2 September 2020 stood at Rs 412.28 crore. The company had recorded a pre-tax loss of Rs 620.03 crore in Q2 September 2019. It incurred a current tax expense of Rs 182.23 crore during the quarter.
GIC Re is the largest reinsurer in the domestic reinsurance market in India. As of 30 September 2020, the Government of India held 85.78% stake in GIC Re.
The scrip rose 0.08% at Rs 127.15 on the Muhurat trading session on Saturday (14 November 2020).
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