New Delhi: General Insurance Corporation of India (GIC Re) on Thursday reported a net profit of Rs 1,201 crore for the third quarter that ended on December 2022. There was a loss of Rs 28.48 crore in the year-ago period. Sequentially, it posted a net profit of Rs 1,859.93 crore in the second quarter ended September 2022. Gross premium during the October-December quarter declined to Rs 10,099.40 crore from Rs 10,240 crore in the same period of the previous fiscal, GIC Re said in a regulatory filing.
Its net premium income inched up to Rs 9,561.2 crore from Rs 9,332.56 crore but earned premium declined to Rs 8,648.76 crore from Rs 8,907 crore. The bottom line was saved by a fall in incurred claims during the quarter, which declined by more than a quarter to Rs 8,380.50 crore from Rs 10,857.83 crore, according to the company.
Its underwriting loss came down massively to Rs 1,537.24 crore from Rs 2,371.2 crore, boosting the net income, which was also buoyed by a healthy jump in investment income at Rs 3,025.7 crore up from Rs 2,271.14 crore.
The net worth of the company (including the fair value change account) was Rs 61,616.80 crore as on December 2022 against Rs 53,723 crore at the end of the third quarter of the previous fiscal.
The key profitability metric the combined ratio stood improved to 114.68 against 122.58 and the adjusted combined ratio to 93.63 from 104.62. "Solvency Ratio is 2.38 as on December 31, 2022 as compared to 1.80 and 2.25 as on December 31, 2021 and September 30, 2022, respectively," it said. Profit for the nine months that ended on December 2022 was Rs 3,749.15 crore compared to a profit after tax of Rs 210.34 crore a year ago.
GIC Re maintains a diversified risk portfolio that includes property, health, motor, agriculture, marine, engineering, aviation, and liability. The general insurance business in India has a penetration level of under one percent, thus, indicating great potential.
Its dominance of the Indian market stems from a long-term and strong relationship with the Indian risk carriers, it said, adding this is supported by continued obligatory cessions and order of preference.
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