GIC Re reports net profit of Rs 987 crore in Q3 FY21

General Insurance Corporation of India (GIC Re) on Thursday reported a net profit of Rs 987.42 crore for the third quarter ended December 2020. There was a loss of Rs 1,069.64 crore in the year-ago period. Sequentially, it had posted a net profit of Rs 230.06 crore in the second quarter ended September 2020.

Gross premium during the October-December quarter increased to Rs 11,668.51 crore, from Rs 11,539.96 crore in the same period of 2019-20, GIC Re said in a regulatory filing.

Global scenario for the insurance industry for the FY21 has shown weak trends due to COVID-19 situation for most classes while benefitting a few. As compared to Q2, there is a growth in business volume during Q3 FY20-21, the general insurer said.

"Although COVID-19 influence remains on the insurance industry, the severity of the impact is gradually reducing and the same is reflected in the results of the industry. GIC Re's financials for the nine months ended 31st December 2020 have shown indications of positivity and signals turnaround in the near future," it added. The net profit for the nine months ended December stood at Rs 660 crore.

However, a loss of Rs 1,556.50 crore was recorded for the same period of the previous fiscal. Investment income for the nine months has increased significantly. GIC Re's international business has shown a growth rate of 23 percent. It grew to Rs 6,534.65 crore for the first nine months this fiscal from Rs 5,216.00 crore in the year-ago period. "Our underwriting performance is expected to show better trends going forward and this will result in further strengthening of GIC Re's position," the insurer said.

Solvency ratio is increased to 1.53 at the end of the third quarter FY21 from 1.51 a year ago. It is a metric to measure how much a company has in assets against how much it owes. The insurer said its total assets stood at Rs 1.34 lakh crore at the end of December 2020, as compared to Rs 1.29 lakh crore by a year ago.

GIC Re's group includes subsidiary companies namely, GIC Re South Africa, GIC Re Corporate Member, London, and GIC Perestrakhovanie LLC, Moscow. The group also includes three associate companies namely GIC Re Bhutan, India International Insurance Pte Ltd, Singapore and Agriculture Insurance Company of India Ltd. Shares of GIC Re closed 0.58 percent up at Rs 137.85 apiece on BSE.