Government-owned General Insurance Corporation of India (GIC Re) has reported a consolidated net loss of Rs 497 crore in the first quarter of the current financial year as against a net profit of Rs 192 crore in Q1 FY20.
It said there has been a reduction in business partially due to strategic reduction of risk acceptance and partially due to the reduction of overall direct premium in India.
The company reported a pre-tax loss of Rs 783 crore in Q1 FY21 as against a pre-tax profit of Rs 159 crore in Q1 FY20.
"The global scenario for the insurance industry has shown weak trends due to Covid-19 situation. GIC Re, however, expects to see a rebound in business during the rest of the year," it said in a statement.
Consolidated gross premium income of the company was Rs 15,983 crore in the quarter ended June as compared to Rs 21,110 crore in the same period of last fiscal year.
Investment income of the group was Rs 1,178 crore as against to Rs 1,413 crore reported in the same period. Incurred claims ratio increased to 94.9 per cent in Q1 FY21 from 87.6 per cent in Q1 FY20.
The ratio is a measure of the net claims settled by an insurer in a financial year as against the total premium amount received in the same period.
The group's net worth (without fair value change account) was Rs 22,017 crore as against Rs 24,560 crore for the corresponding quarter of the previous year.
GIC Re Group includes subsidiary compes like GIC Re South Africa, GIC Re Corporate Member in London and GIC Perestrakhove LLC in Moscow.
It also includes three associate compes namely GIC Re Bhutan, India International Insurance Pte in Singapore and Agriculture Insurance Company of India.
GIC Re is the largest reinsurer in the domestic reinsurance market in India. As of June 30, the government held 85.78 per cent stake in it.
At 11:20 am, GIC Re stock was trading 3.24 per cent lower at Rs 140.20.
( With inputs from ANI )
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