State-owned reinsurance major GIC Re today posted 3.38 per cent growth in standalone net profit for the financial year 2017-18 at Rs 3,233.58 crore on strong growth in all the verticals. Its profit stood at Rs 3,127.67 crore for the financial year 2016-17. “The strong performance was due to overall balanced growth with all the verticals doing well. Our crop insurance grew by 25 per cent, property by 23 per cent, motor by 20 per cent and health by 27 per cent,” GIC Re chairman and managing director Alice Vaidyan said over a telecon.
Gross premium income of the company grew by 24.5 per cent at Rs 41,799.37 crore for 2017-18, from Rs 33,585.44 crore in the previous year. Investment income increased by 17.6 per cent to Rs 5,392.03 crore, compared with Rs 4,584.35 crore.
Incurred claims ratio increased to 86.5 per cent during the year, from 81 per cent in FY17, while the combined ratio was 104.0 per cent, compared with 99.7 per cent. Vaidyan said GIC Re is targeting 95-100 per cent combined ratio in FY19. “The market is positive and we expect the government schemes, including the new crop insurance scheme, Pradhan Mantri Fasal Bima Yojana and the health insurance scheme, Pradhan Mantri Swasthya Suraksha Yojana, will drive our growth in this financial year.
The international business will be aided by Lloyd’s syndicate,” she added. GIC Re began operations as its Lloyd’s syndicate from April 2018. The total assets of the company have increased by 16.1 per cent to Rs 110,226.98 crore as on March 31, 2018, from Rs 94,948.62 crore as on March 31, 2017.