GIC Re announces Financial Performance for the Quarter and Year ended March 31, 2020

GIC Re announced financial performance for the Year Ended March 31, 2020 at a Board Meeting of company held in Mumbai today.

Commenting on the results, Mr. Oevesh Srivastava, Chairman and Managing Director said, "GIG Re has maintained its market standing in both domestic and foreign businesses. However, fiscal 2020 has seen the Insurance Industry register severe claims World-wide as well as in India. The explosion of the Covid-19 Pandemic has further aggravated the situation leading to an impact on the financial markets and the economy in general." He added, "The highlight, however, has been a strong performance in the fourth quarter with a Profit After Tax of Rs. 1,197 crore which has offset a large proportion of the losses incurred in the three quarters of the year 2019-20.

The details of financial performance for the year ended 31.03.2020:

- Growth in Gross Premium Income of the company was 15.35 % with premium of Rs. 51,030.13 crore for the current year ended 31.03.2020 from Rs. 44,238.00 crore in the previous year ended 31.03.2019.

- Investment Income increased by 11.31 % to Rs. 7,125.48 crore for the year ended 31.03.2020 as compared to Rs. 6,401.34 crore for the year ended 31.03.2019.

- The company recorded Loss before tax of Rs. 445.97 crore in year ended 31.03.2020 as against Profit before tax of Rs. 3,433.82 crore in the previous year. The reduction in profit is on account of provisioning for investments and increase in agriculture losses. Also, Loss before tax up to the period ended 31.12.2019 was Rs. 1,547.06 crore, and due to profit before tax for the 4th quarter 2019-20 amounting to Rs. 1,101.09 crore, Loss before tax for the year 2019-20 reduced to Rs. 445.97 crore.

- Loss After Tax for year period ended 31.03.2020 recorded as Rs. 359.09 crore as compared to Profit after Tax of Rs. 2,224.31 crore for year ended 31.03.2019. As compared to Loss After Tax for the nine months period ended 31.12.2019, amounting to Rs. 1,556.50 crore, there has been profit after tax recorded in the 4th quarter 2019-20 of Rs. 1,197.41, which reduced the loss for the full year 2019-20.

- Net Worth of the company (without fair value change account) recorded as Rs. 20,529.45 crore on 31.03.2020 as against Rs. 22,334.42 crore on 31.03.2019.

- Total Assets was Rs. 1,16,196.20 crore as on 31.03.2020 as compared to Rs. 1,18,883.57 crore as on 31.03.2019.

- Incurred Claims Ratio increased from 89.5 % in the year ended 31.03.2019 to 97.5 % in the year ended 31.03.2020.

- Underwriting Loss recorded Rs. 6,367.18 crore in year ended 31.03.2020 as against loss of Rs. 2,211.46 crore in previous year. Underwriting performance improved during the 4th quarter 2019-20 with underwriting loss for this quarter to Rs. 463.58 crores.

Shares of General Insurance Corporation of India was last trading in BSE at Rs.152.95 as compared to the previous close of Rs. 154.65. The total number of shares traded during the day was 44685 in over 1380 trades.

The stock hit an intraday high of Rs. 158.35 and intraday low of 152.4. The net turnover during the day was Rs. 6936882.

Source : Equity Bulls

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