GIC Re, the state-owned reinsurer registered rise in net profit to Rs 1,419.11 crore for the September quarter.
The company had posted a net profit of Rs. 251.79 crore in the July-September quarter of the previous fiscal.
The net premium written during the quarter stood at Rs.5,865.89 crore.
The solvency ratio stood at 1.72 in H1FY18 as compared to 2.92 in same period last fiscal.
The gross domestic premium income recorded remarkable increase of 51.4 % to Rs. 24,404.37 crore in H1.
For the half-year ended 30th September 2017 we have registered a premium growth of 51.4% over the same period of previous year. This growth has come in conjunction with a 89.3% growth in PAT and a 60% improvement in our RoE to 19.6%.
On the domestic front, the introduction of PMFBY, agriculture insurance has been a key driver of premium growth. Agriculture insurance does present exposure accumulation potential and thus insurers in India have sought to reinsure more with market retention dropping to about 70%.
This has benefitted GIC Re in terms of expansion of reinsurance market as also benefit of diversifying our agriculture risk book pan-India.
The obligatory cession on the non-life insurance business continues to be stipulated at 5% by the insurance regulator. Order of preference continues to be in force underlining the pivotal position of GIC Re in the Indian Insurance Industry.
There is consistent improvement in our operating parameters. Our combined ratio has shown consistently improving trend during last 3 years.
Company stated, “We have achieved underwriting profitability. This is particularly important in the context of our significant business being sourced from India and Indian market not quite showing very healthy underwriting performance. Hence, the challenge for us remains working against the market trends.”