General Insurance Corporation of India financial Report

GIC Re announces financial performance for the quarter and nine months ended December 31, 2017

New Delhi, February 12, 2018: GIC Re announced financial performance for the third quarter and nine months ended December 31, 2017 at a board meeting of company held in Mumbai today.Ms. Alice Vaidyan, CMD highlighted the strong growth and better profitability during Q3 in the context of bright prospects for the insurance sector.

·        Growth in Gross Direct Premium Income of the company was 36.8% with premium of ₹33,274.35 crore in the nine months ended 31.12.2017 from ₹24,323.61 crore in the same period of previous year.

·        Investment Income increased by 28.4% to ₹3,611.85 crore for the nine months ended 31.12.2017 as compared to ₹2,811.85 crore for the nine months ended 31.12.2016.           

·        Profit After Tax (PAT) for the nine months ended 31.12.2017 was INR ₹ 2,481.99 crore compared to ₹ 554.82 crore during same period of last year.

·        Incurred Claims Ratio decreased from 87.4 % in the nine months ended 31.12.2016 to 84.7% in the nine months ended 31.12.2017.

·        Combined Ratio is 101.1% for the nine months ended 31.12.2017 as compared to 105.9% for the nine months ended 31.12.2016.

·        The company recorded an underwriting loss of  ₹  327.44 crore for the nine months ended 31.12.2017 as against an underwriting loss of ₹1,875.72 crore during the corresponding period last year.

·        Net Worth of the company (without fair value change account) increased by 35% to ₹ 20,776.01 crore on 31.12.2017 from ₹ 15,384.78 crore on 31.12.2016. (Net Worth on 31.03.2017 stood at ₹ 17,946.63 crore).

·        Growth in net worth (including fair value change account) was 31.4% at INR 54591.20 crore as against INR 41,554.20 crore. 

·        Return On Equity (ROE—Annualized), improved to 15.9% in the nine months ended 31.12.2017 compared to 4.8% in the previous year showing a growth of 331.3%.

·        Solvency Ratio of 1.87 as on 31 December 2017, which is above the minimum required Solvency Ratio of 1.50.

·        Investment Assets (including fair value) increased by 24.9 % from ₹ 86,236.08 crore as on 31.12.2016 to ₹ 107,671.95 crore as on 31.12.2017. 

            Summary of Revenue and Profit and Loss Account

( ₹ crore)
SL No	Particulars	Three Months Ended			Nine Months Ended		Year Ended
		31 Dec, 2017	30 Sept, 2017	31 Dec, 2016	31 Dec, 2017	31 Dec, 2016	31 March, 2017
1	Gross Premium	8,869.98	7,209.61	8,205.53	33,274.35	24,323.61	33,585.44
2	Net Premium	7,477.13	5,865.89	7,635.60	30,354.44	22,274.90	30,174.56
3	Earned Premium	8,557.68	9,707.39	5,715.56	31,042.72	16,970.49	26,714.90
4	Incurred Claims	7,704.11	7,878.64	5,721.26	26,290.45	14,828.02	21,646.41
5	Incurred Claims Ratio (on earned premium)	90.0%	81.2%	100.1%	84.7 %	87.4 %	81.0%
6	Net Commission	1,095.32	1,075.54	1,413.07	4,823.57	3,948.17	5,404.40
7	Net Commission Percentage (on Net Premium)	14.6%	18.3%	18.5%	15.5 %	17.7 %	17.9%
8	Expenses of Management	51.35	49.47	54.71	153.72	188.71	239.73
9	Expenses of Management Ratio (on net premium)	0.7%	0.8%	0.7%	0.5%	0.8 %	0.8%
10	Profit/(Loss) on Exchange	(126.09)	46.47	71.46	(102.41)	118.70	(30.83)
11	Underwriting Profit/(Loss)	(419.19)	750.20	(1,402.02)	(327.44)	(1875.72)	(606.47)
12	Investment Income	1,195.59	1,253.85	883.94	3,611.85	2,811.85	4,584.35
13	Other Income less Outgoings	11.58	(86.35)	18.15	(187.36)	(273.00)	(354.02)
14	Profit Before Tax	787.98	1,917.70	(499.93)	3,097.05	663.13	3,623.86
15	Provision for Taxation	115.22	498.59	(98.94)	615.06	108.31	496.19
16	Profit After Tax	672.76	1,419.11	(400.99)	2,481.99	554.82	3,127.67
17	Combined Ratio %	-	-	-	101.1 %	105.9 %	99.7%

Financial Data

					₹ crore
Particulars	Nine months ended 31.12.2017	Nine months ended 31.12.2016	Growth %	FY 2016-17	FY 2015-16
GDPI	33,274.35	24,323.61	36.8 %	33,585.44	18,435.81
Profit After Tax (PAT)	2,481.99	554.82	347.4%	3,127.67	2,848.39
Return on Equity (ROE)*	15.9%	4.8%		17.4%	19.2%
Combined ratio (%)	101.1 %	105.9 %		99.7 %	107.4 %
Solvency Ratio (times)	1.87	2.21

...