General Insurance Corporation of India (GIC Re) rose 5.01% to Rs 160.40 after consolidated net profit soared 36.4% to Rs 1,260.02 crore on 43.1% jump in total income to Rs 9,886.85 crore in Q4 March 2020 over Q4 March 2019.
Consolidated profit before tax (PBT) dropped 26.1% to Rs 1,123.19 crore in Q4 March 2020 as against Rs 1,520.04 crore in Q4 March 2019. The Q4 result was declared post trading hours yesterday, 24 June 2020.
On a consolidated basis, GIC Re reported net loss of Rs 186.46 crore in the year ended March 2020 (FY20) as against net profit of Rs 2,757.57 crore in the year ended March 2019 (FY19). Total income rose 15.59% to Rs 52,098.44 crore in FY20 over FY19.
Consolidated gross premium income of the company surged 12.94% to Rs 51,515.02 crore in FY20 from Rs 45,611.32 crore in FY19. Investment income of the group grew 10.84% to Rs 7,146.88 crore in FY20 as against Rs 6,447.75 crore in FY19.
Incurred claims ratio improved to 97.3% in FY20 from 88.8% in FY19. The group's net worth (without fair value change account) in FY20 stood at Rs 22,843.24 crore as against Rs 24,520.70 crore in the previous year.
On a standalone basis, total assets of the state-owned insurer stood at Rs 1,16,196.20 crore as on 31 March 2020 as compared to Rs 1,18.883.57 crore as on 31 March 2019. Underwriting loss recorded Rs 6,367.18 crore in FY20 as against loss of Rs 2,211.46 crore in the previous year. Underwriting performance improved during the fourth quarter 2019-20 with underwriting loss for this quarter to Rs 463.58 crore.
Combined ratio is 114.37% in FY20 compared with 105.86% in FY19. The figure was 115.76% in the period ended 31 December 2019. Adjusted combined ratio stood at 102.47% in FY20 as against in FY19. The solvency ratio stood at 1.53 as on 31 March 2020.
Commenting on the Q4 performance, Devesh Srivastava, the chairman and managing director of General Insurance Corporation of India (GIC Re), has stated that: "GIG Re has maintained its market standing in both domestic and foreign businesses. However, fiscal 2020 has seen the insurance industry register severe claims world-wide as well as in India. The explosion of the COVID-19 pandemic has further aggravated the situation leading to an impact on the financial markets and the economy in general. The highlight, however, has been a strong performance in the fourth quarter with a profit after tax of Rs 1,197 crore which has offset a large proportion of the losses incurred in the three quarters of the year 2019-20."
GIC Re Group includes subsidiary companies like GIC re South Africa, GIC Re Corporate Member, London and an addition in this year of our 100% owned subsidiary in Russia namely 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 31 March 2020, the Government of India held 85.78% stake in GIC Re.
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