Mumbai: Government-owned General Insurance Corporation of India (GIC Re) said it suffered a loss before tax of Rs 481 crore in the first half of current fiscal year (April to September) as against profit before tax of Rs 200 crore in the corresponding period of previous year.
The reduction in profit is on account of provisioning of IL&FS, Dewan Housing Finance Ltd (DHFL) and reduction in other income such as exchange gains and provision for an increase in agriculture losses, the company said in a statement.
Loss after tax for the half-year was Rs 487 crore compared to a profit after tax of Rs 1,285 crore in corresponding period of the previous year. Growth in gross premium income was 11.6 per with a premium of Rs 30,272 crore for H1 FY20 from Rs 27,117 crore in the corresponding period of previous fiscal.
Investment income of Rs 3,197 crore during H1 FY20 compared with Rs 3,281 crore for H1 FY19 while the net worth of the company (without fair value change account) totalled Rs 20,420 crore compared to Rs 21,298 crore as on September last year.
"Against the backdrop of severe claims worldwide during 2019-20, higher agriculture claims and also flood claims in various parts of India, underwriting performance in the quarter ending September resulted in underwriting loss to the corporation. However, going forward the trend of claims experience is expected to be better for the rest of 2019-20," said GIC Re.
Globally, GIC Re is an effective reinsurance partner for the Afro-Asian region, leading reinsurance programmes of several insurance companies in the Middle East, North Africa and Asia including SAARC countries.
The group includes subsidiary companies like GIC Re South Africa, GIC Re Corporate Member London, GIG Perestrakhovanie LLC in Moscow and three associate companies: GIG Re Bhutan. India International Insurance Pte Ltd in Singapore and Agriculture Insurance Corporation of India.
GIC Re is 11th largest global reinsurer and seventh-largest non-life reinsurer worldwide.