General Insurance Corporation of India (GIC Re) fell 2.35% to Rs 141.50 after the company reported a consolidated net loss of Rs 497.03 crore in Q1 June 2020 as against a net profit of Rs 192.07 crore in Q1 June 2019.
Total income fell 18% year-on-year (YoY) to Rs 15,013.47 crore during the quarter. The company reported a pre-tax loss of Rs 783.37 crore in Q1 June 2020 as against pre-tax profit of Rs 159.44 crore in Q1 June 2019.
"Global scenario for Insurance Industry for the FY 2020-21 has shown weak trends due to COVID19 situation. GIC Re although has maintained its prominent position in Indian Insurance Sector, there has been reduction in business for the Q1 2020-21 partially due to strategic reduction of risk acceptance and partially due to reduction of overall Direct Premium in India. GIC Re however expects to see rebound in business during the rest of the year, the general insurer said in a statement.
Consolidated gross premium income of the company was Rs 15,982.75 crore in the quarter ended 30 June 2020 as compared to Rs 21,110.36 crore in the quarter ended 30 June 2019.
Investment income of the group was Rs 1,178.22 crore in the quarter under review, as against to Rs 1,412.67 crore reported in the year ago same period.
Incurred claims ratio increased to 94.9% in Q1 FY21 from 87.6% in Q1 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.
Group's net worth (without fair value change account) for quarter ended in June 2020 was Rs 22,017.25 crore as against Rs 24,559.76 crore for corresponding quarter of previous year.
GIC Re Group includes 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.
GIC Re is the largest reinsurer in the domestic reinsurance market in India. As of 30 June 2020, the Government of India held 85.78% stake in GIC Re.
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