GIC Re announces Financial Performance for the Quarter ended June, 2020

GIC Re announced financial performance for the Quarter Ended June 30, 2020 at a Board Meeting of company held in Mumbai.

Global scenario for Insurance Industry for the FY 2020-21 has shown weak trends due to COVID19 situation. GIC Re although has maintained its prominent position in Indian Insurance Sector, there has been reduction in business for the Q1 2020-21 partially due to strategic reduction of risk acceptance and partially due to reduction of overall Direct Premium in India. GIC Re however expects to see rebound in business during the rest of the year. GIC Re's gross premium for foreign business has shown a growth for the 1st Quarter 2020-21.

Details of financial performance for the quarter ended 30.06.2020:

- Total Assets were Rs. 1,29,291.31 crore as on 30.06.2020 as compared to Rs. 1,28,776.54 crore as on 30.06.2019.

- Gross Premium Income of the company was Rs. 15,881.55 crore for the quarter ended 30.06.2020 as compared to Rs. 20,813.12 crore in the quarter ended 30.06.2019.

- Investment Income of Rs 1,142.83 crore for the quarter ended 30.06.2020 as compared to Rs. 1,401.90 crore for the quarter ended 30.06.2019.

- The company recorded Loss before tax of Rs. 811.22 crore in quarter ended 30.06.2020 as against Profit before tax of Rs 138.90 crore in the quarter ended 30.06.2019. The reduction in profit is attributable to higher underwriting loss and reduction in Investment Income.

- Loss After Tax for quarter ended 30.06.2020 recorded as Rs. 557.47 crore as compared to Profit after Tax of Rs. 108.60 crore for quarter ended 30.06.2019.

- Net Worth of the company (without fair value change account) recorded as Rs. 19,714.81 crore on 30.06.2020 as against Rs. 22,443.07 crore on 30.06.2019 and Rs. 20,529.45 crore as on 31.03.2020.

- Net Worth of the company (including fair value change account) recorded as Rs. 39,071 .36 crore on 30.06.2020 as against Rs. 52,181.82 crore on 30.06.2019 and Rs. 35,425.87 crore as on 31.03.2020.

- Incurred Claims Ratio increased from 87.8% in the quarter ended 30.06.2019 to 94.2% in the quarter ended 30.06.2020 but improved from 97.5% as in Financial Year 2019-20.

- Underwriting Loss recorded Rs. 1,771.35 crore in quarter ended 30.06.2020 as against loss of Rs. 854.37 crore in quarter ended 30.06.2019.

- Combined Ratio is 112.16% for the Quarter ended 30.06.2020 as compared to 102.63% for the quarter ended 30.06.2019 and 114.38% for Financial Year 2019-20.

- Adjusted Combined Ratio is 105.88% for the quarter ended 30.06.2020 as compared to 97.24% for quarter ended 30.06.2019 and 102.47% for Financial Year 2019-20.

- Solvency Ratio of 1.52 as on 30.06.2020.

Consolidated Financials of GIC Re

- 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. The group performance highlights, on the basis of consolidated financial statements for the quarter ended 30.06.2020 are given below:

- Consolidated Gross Premium Income of the company was Rs. 15,982.75 crore in the quarter ended 30.06.2020 as compared to Rs. 21,110.36 crore in the quarter ended 30.06.2019.

- Investment Income of the group was Rs. 1,178.22 crore for quarter ended 30.06.2020 as compared to Rs. 1,412.67 crore for the quarter ended 30.06.2019.

- Consolidated Loss After Tax for the quarter ended 30.06.2020 was Rs. 497.02 crore compared to Profit after Tax of Rs. 192.07 crore for corresponding quarter of previous year.

- Incurred claims Ratio increased from 87.6% in the quarter ended 30.06.2019 to 94.9% in the quarter ended 30.06.2020.

- Group's net worth (without fair value change account) for quarter ended 30.06.2020 was Rs. 22,017.25 crores as against Rs. 24,559.76 crore for corresponding quarter of previous year.

Shares of General Insurance Corporation of India was last trading in BSE at Rs.144.9 as compared to the previous close of Rs. 144.3. The total number of shares traded during the day was 28806 in over 908 trades.

The stock hit an intraday high of Rs. 145.75 and intraday low of 142. The net turnover during the day was Rs. 4145888.

Source : Equity Bulls

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