GIC Re posts Rs 230 crore net profit for September quarter

General Insurance Corporation of India (GIC Re) on Friday reported a net profit of Rs 230.06 crore for the quarter ended September 2020.

The state-owned insurer had posted a net loss of Rs 595.44 crore in the corresponding period of the previous financial year.

Its gross premium during July-September 2020 grew to Rs 10,651.50 crore, compared with Rs 9,459.21 crore in the year-ago period, GIC Re said in a regulatory filing.

Net premium was slightly up at Rs 8,846.07 crore, from Rs 8,798.70 crore.

However, for the first half ended September of 2020-21, the insurer had a net loss of Rs 327.42 crore, which narrowed as compared to Rs 486.86 crore in the first half of 2019-20.

Global scenario for the insurance industry for 2020-21 has shown weak trends due to the COVID-19 situation for most classes while benefitting a few. As compared to the first quarter of the current financial year, there was a growth in business volume during the second quarter, GIC Re said.

"GIC Re's financials for the half year ended September 30, 2020, have shown indications of positivity and signals turnaround in the near future.

"Investment income for the first half of 2020-21 has increased significantly. GIC Re's international business has shown a growth rate of 31 per cent," it said.

The company's gross premium income was Rs 26,533.05 crore for first half of this fiscal, compared with Rs 30,272.33 crore a year ago period. A comparison of the second quarter of this fiscal with a year ago shows an increase of 12.6 per cent, it added.

Investment income grew to Rs 3,910.17 crore for the half year, from Rs 3,197.01 crore a year ago.

GIG Re's group includes subsidiary companies -- GIG Re South Africa, GIC Re Corporate Member, London, and GIC Perestrakhovanie LLG, Moscow. The group also includes three associate companies -- GIC Re Bhutan, India International Insurance Pte Ltd, Singapore and Agriculture Insurance Company of India Ltd.

Shares of GIC Re on Friday rose 1.88 per cent to Rs 127.05 apiece on the BSE.

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