Earnings Review
GIC net profit rises 16% YoY as expenses, commissions fall
This story was originally published at 21:43 IST on 12 November 2024
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--GIC Jul-Sept net profit INR 18.61 bln vs INR 16.05 bln year ago
--GIC Jul-Sept net premium written INR 76.04 bln vs INR 99.67 bln year ago
--GIC Apr-Sept net profit INR 28.97 bln vs INR 23.37 bln year ago
--GIC Apr-Sept net premium written INR 191.42 bln vs INR 181.98 bln year ago
--GIC: Combined ratio at 114.05% on Sept 30 vs 115.83% yr ago
--GIC: Solvency ratio at 3.42 times as on Sept 30
By Kshipra Petkar
MUMBAI – General Insurance Corp of India's net profit rose 15.9% on year to INR 18.61 billion in Jul-Sept. Sequentially, the net profit was up 79.6%. The rise in the bottom line was aided by a fall in commissions and expenses.
Net commissions in Jul-Sept fell to INR 14.94 billion from INR 16.54 billion a year ago. Sequentially, the net commissions fell 32%.
The total expenses of the state-owned reinsurance company fell to INR 98.27 billion in Jul-Sept from INR 115.46 billion a year ago. Within expenses, the claims paid by the company fell by 27.8% on year to INR 48.67 billion in the reporting quarter. The incurred claim ratio fell to 93.65% in Jul-Sept, from 98.36% a year ago and 89.77% in Apr-Jun.
The underwriting loss narrowed in the reporting quarter, aiding the company's bottom line. The underwriting losses declined to INR 10.88 billion from INR 14.72 billion a year ago.
The gross premium written by the reinsurer fell 21.8% on year to INR 84.13 billion in the reporting quarter. The gross premium written was at INR 124.06 billion in Apr-Jun.
For the six months ended September, the gross premiums in the fire segment fell 1.9% to INR 63.84 billion and the marine segment fell 39.1% on year to INR 6.31 billion. The gross premiums in the miscellaneous segment, which includes motor, health and agriculture, rose by 13.2% on year to INR 12.93 billion.
The net premium written fell to INR 76.04 billion in Jul-Sept from INR 99.67 billion a year ago. Sequentially, it declined 34.1%. The net income from investments rose 1.8% on year to INR 24.42 billion in the reporting quarter. Total income fell 10.4% to INR 111.80 billion in Jul-Sept.
The combined ratio improved to 114.05% in Jul-Sep from 115.83% a year ago, and 109.60% a quarter ago. A ratio below 100% indicates an underwriting profit. The solvency ratio of the company stood at 3.42 times as on Sept. 30, above the regulatory requirement of 1.50 times.
The Indian government's shareholding in GIC Re, the largest reinsurer in the domestic reinsurance market, fell to 82.40% as on Sept. 30 from 85.78% a quarter ago. On the National Stock Exchange, the shares of General Insurance Corp closed 0.4% lower at INR 366.30 on Tuesday. End
Edited by Saji George Titus
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