General Insurance Corporation of India (GIC Re) reported an increase in net profit at Rs 3,233.59 crore for the last financial year, a growth of 3.4% against Rs 3,127.67 crore in the previous financial year.
The company has also declared a one for one bonus subject to approval of the shareholders. However, combined ratio of reinsurer stood at 104% in 2017-18 from 99.7% in the previous fiscal, while solvency also went down to 1.72% in the last fiscal against 2.40% in 2016-17.
Alice G Vaidyan, chairman-cum-MD at GIC Re, said, “2017 was a bad year for entire reinsurance market as it saw record insured losses from global catastrophe events. The year saw catastrophe losses in Harvey, Irma and Maria in the USA and the Caribbean alongside Mexican earthquake and California wildfires, which hit the insurance and reinsurance industry profitability in a major way.”
However, she added that GIC Re recorded a growth of 24.5% in annual premium and saw record profits in the last fiscal.
Growth in gross premium income of the company was 24.5% with Rs 41,799.37-crore premium for the year ended March 31, 2018, from Rs 33,585.44 crore in the previous year. Even, investment income increased 17.6% to Rs 5,392.03 crore for the last fiscal compared to Rs 4,584.35 crore for the previous fiscal. However, in the last fiscal, GIC Re saw high underwriting losses in the fire and agriculture segments.