GIC Re's underwriting loss widens in wake of COVID-19

General Insurance Corporation of India (GIC Re) has reported underwriting losses of INR63.67bn ($842m) for the financial year ended 31 March 2020 (FY2020), 188% compared to a loss of INR22.11bn in FY2019.

The combined ratio of the reinsurer for FY2020 stood at 114%, compared to 106% in FY2019. The company registered a net loss of INR3.59bn for FY2020 as compared to a net profit of INR22.24bn for FY2019. The insurer reported a 15.35% increase in gross premium to INR510.30bn in FY2020 from INR442.38bn in FY2019.

“FY2020 has seen the insurance industry register severe claims worldwide as well as in India. The explosion of the COVID-19 pandemic has aggravated the situation leading to an impact on the financial markets and the economy in general”, said Mr Devesh Srivastava, chairman and managing director of GIC Re.

Investment income rose by11.3% to INR71.2bn for FY2020 compared to INR64.01bn for FY2019. At the end of March, the solvency ratio of GIC Re stood at 1.53, marginally higher than the regulatory requirement of 1.5.

Source: Asia Insurance Review