GIC Re announces Financial Performance for the Nine months ended 31st December 2020

GIC Re announced financial performance for the Nine months ended 31st December, 2020 at a Board Meeting of company held in Mumbai today.

Global scenario for Insurance Industry for the FY 2020-21 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.

Although Covid-19 influence remains on the Insurance Industry, 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. Investment Income for the nine months ended 31st December 2020 has increased significantly. GIC Re's international business has shown a growth rate of 23%. Our underwriting performance is expected to show better trends going forward and this will result in further strengthening of GIC Re's position.

Financial performance for the nine months ended 31.12.2020:

Gross Premium Income of the company was Rs. 38,201.56 crore for the nine months ended 31.12.2020 as compared to Rs. 41,812.29 crore for the nine months ended 31.12.2019.

Incurred Claims Ratio reduced from 99.1% as on 31.12.2019 to 94.9% as on 31.12.2020.

Underwriting Loss reduced from Rs. 5903.60 crore for Nine months ended 31.12.2019 to Rs. 4,953.35 crore for nine months ended 31.12.2020. Underwriting loss only for the 3rd quarter 2020-21 is recorded at Rs. 1,022.64 Crore as against 3rd quarter 2019-20 underwriting loss of Rs. 2,749.44 crore.

Investment Income of Rs. 6,534.65 crore for nine months ended 31.12.2020 as compared to Rs. 5,216.00 crore for nine months ended 31.12.2019.

Solvency Ratio is increased to 1.53 as on 31.12.2020, as compared to 1.51 as on 31.12.2019

The company recorded Profit Before Tax of Rs. 1,117.90 crore for nine months ended 31.12.2020 as against Loss before tax of Rs 1,547.06 crore for the nine months ended 31.12.2019. For the 3rd quarter 2020-21, there has been a Profit Before Tax of Rs. 1,516.84 crore.

Profit After Tax for the nine months ended 31.12.2020 recorded as Rs. 660 crore as compared to Loss after Tax of Rs. 1,556.50 crore for nine months ended 31.12.2019. There has been Profit After Tax of Rs. 987.42 Crore recorded for Quarter ended 31.12.2020.

Total Assets were Rs. 1,33,931.04 crore as on 31.12.2020 as compared to Rs. 1,28,509.76 crore as on 31.12.2019.

Net Worth of the company (without fair value change account) recorded as Rs. 21,204.05 crore on 31.12.2020 as against Rs. 20,529.45 crore as on 31.03.2020 and Rs. 19,350.67 Crore as on 31.12.2019.

Net Worth of the company (including fair value change account) recorded as Rs. 45,952.21 crore on 31.12.2020 as compared to Rs. 35,425.87 crore as on 31.03.2020 and Rs. 46,382.21 as on 31.12.2019.

Combined Ratio is 114.02% for the Nine months ended 31.12.2020 as compared to 115.76% for the nine months ended 31.12.2019 and 114.38% for Financial Year 2019-20.

Adjusted Combined Ratio is 98.82% for the nine months ended 31.12.2020 as compared to 104.97% for nine months ended 31.12.2019 and 102.47% for Financial Year 2019-20.

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 nine months ended 31.12.2020 are given below:

- Consolidated Gross Premium Income of the company was Rs. 38,577.84 crore in the nine months ended 31.12.2020 as compared to Rs. 42,229.51 crore in the nine months ended 31.12.2019.

- Investment Income of the group was Rs. 6534.05 crore for nine months ended 31.12.2020 as compared to Rs. 5298.66 crore for the nine months ended 31.12.2019.

- Consolidated Profit After Tax for the nine months ended 31.12.2020 was Rs. 662.72 crore compared to Loss After Tax of Rs. 1,496.08 crore for corresponding period of previous year.

- Incurred claims Ratio reduced from 99.0% for nine months ended 31.12.2019 to 94.6% for nine months ended 31.12.2020.

- Group's net worth (without fair value change account) for nine months ended 31.12.2020 was Rs. 23,411.14 crores as against Rs. 21,558.04 crores for corresponding period of previous year.

Shares of General Insurance Corporation of India was last trading in BSE at Rs.138 as compared to the previous close of Rs. 137.05. The total number of shares traded during the day was 8239 in over 210 trades.

The stock hit an intraday high of Rs. 138.55 and intraday low of 137.2. The net turnover during the day was Rs. 1135109.

Source : Equity Bulls

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