Mumbai, Aug 10 (PTI) Sole national reinsurer GIC Re on Wednesday reported a net income of Rs 689.72 crore in the April-June quarter of FY23, compared to a net loss of Rs 771.73 crore one year ago.
The return to profitability was due to a lower underwriting loss which fell to less than a third at Rs 776.29 crore for the quarter from Rs 2,811.17 crore in the prior year quarter, said the public reinsurer in a press release.
Gross premium income slipped to Rs 11,021.83 crore from Rs 14,289.92 crore a year ago, while investment income soared to Rs 1,890.43 crore from Rs 1,794.60 crore, which supported the net result.
The combined ratio – a key measure of profitability – improved to 110.97 from 123.36 a year ago and the solvency ratio stood at 2.14 from 1.74 a year ago .
The total assets of the company increased to Rs 1,46,178.09 crore from Rs 1,42,454.14 crore and the net worth (without fair value change account) increased to Rs 24,744.87 crore from Rs 21,285.37 crore. Net worth including fair value change account increased to Rs 53,741.39 crore from Rs 50,673.76 crore.
While gross premium income fell to Rs 11,021.83 crore from Rs 14,289.92 crore, net premium income also fell to Rs 10,493.68 crore from Rs 12,935.22 crore. Earned premium income also decreased to Rs 10,736.16 crore from Rs 11,354.41 crore.
On the claims front, incurred claims decreased to Rs 10,168.91 crore in the quarter under review from Rs 11,837.40 crore a year ago.
The company’s net commission fell to Rs 1,655.56 crore from Rs 2,409.29 crore, again increasing the net income, while other expenses stood at Rs 49.80 crore, from Rs 62.40 crore.
The domestic gross premium constituted 75% of its income at Rs 8,247.77 crore, but fell by 21% from Rs 10,435.60 crore a year ago, while the international gross premium fell by 28% at Rs 2,774.06 crore against Rs 3,854.33 crore. A year ago, the share was 73 and 27 percent respectively. PTI BEN HTA