GIC Re net profit rises 89 pc to Rs 1,809 cr, Gross direct premium increases 51.4 pc to Rs 24,404.37 crore in H1 2017
GIC Re's combined ratio is at 99.4% for the half year ended Sep 30 as compared to 99.1% for the year ago.
State-owned GIC Re’s net profit after tax (PAT) for the half year ended in September 30 grew at 89.3 percent to 1,809.22 crore compared to Rs 955.81 crore in the year ago.
Gross direct premium income of the company recorded remarkable increase of 51.4 per cent to Rs 24,404.37 crore during the reporting period from Rs 16,118.08 crore in year ago.
GIC Re's combined ratio is at 99.4% for the half year ended Sep 30 as compared to 99.1% for the year ago. However, in comparison with the year ended in March 2017 , the reinsurer's combined ratio shows an improving trend.
The company witnessed a substantial growth in Indian business of 72.9% to Rs 19,227.35 crore for the reporting period as against Rs 11,122.71 crore for the corresponding period for previous year.
The reinsurer’s Earning Per Share (EPS) for the reporting period increased to Rs 21.04 from Rs 11.11 for the corresponding period in the previous year.
Return on equity (ROE- Annualised), improved to 19.6 per cent in the first half f the fiscal compared to 12.2 per cent in the year ago.The company had a Solvency ratio of 1.72 as on 30 September 2017, which is above minimum required solvency ratio of 1.50.
Networth of the company increased by 17.5 per cent to Rs 18,549.92 crore as on Sep 30from Rs 15,785.77 crore as on Sep 2016. Networthof the company as on Mar 2017 stood at Rs 7,946.63 crore.
``We have consistently tried to benchmark ourselves with global peers with state of the art global practices.Through stress tests, we continue to assess our resilience to domestic and global shocks on our financials and take counter-measures. We continue to take a conservative view when it comes to claims reserving. We continue to invest in catastrophe modelling & expand our suite of models for key territories, said AliceVaidyan, CMD, GIC Re.
``There is consistent improvement in our operating parameters. Our combined ratio has shown consistently improving trend during last three years. We have achieved underwriting profitability. This is particularly important in the context of our significant business being sourced from India and Indian market not quite showing very healthy underwriting performance. Hence, the challenge for us remains working against the market trends,'' said Vaidyan,
With a market leadership with over 60 per cent , GIC Re maintains the leadership in the Indian reinsurance market.