GIC pockets Rs 500 crore from bull rally

The General Insurance Corporation of India (GIC) has made windfall gains from the bull run in the capital market.

The national reinsurer has booked Rs 500 crore profit on sale of investments in fiscal 2003.

Of the total investment corpus of Rs 10,000 crore in 2003-04, GIC earned a return of about 13 to 14 per cent, said B P Deshmukh, general manager, GIC.

GIC has decided to minimise project financing to reduce its non-performing asset level. At the same time, the reinsurer will continue to invest in equity and rated instruments, added Deshmukh.

GIC's gross NPAs in fiscal 2003 stood at seven per cent with the provision cover in excess of 50 per cent. The corporation's solvency ratio stands at 319 per cent reflecting its strong financial position.

Desmukh was speaking at the launch of GIC's domestic rating by the rating agency Care.

The national reinsurer has been assigned a rating of AAA (In), signifying the corporation's ability to pay claims.