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GIC Re announces Financial Performance for the Nine months ended 31.12.2021

• nationalherald
• February 14, 2022

by Prashant Kapadia/NHN

Mumbai, February,2022: GIC Re announced financial performance for Nine months ended 31^st December 2021 at a Board Meeting of company held in Mumbai today.

We give below details of our financial performance for the Nine months ended 31.12.2021:

• Gross Premium Income of the company was ₹ 32,904.65 crore for the nine months ended 31.12.2021 as compared to ₹ 38,201.56 crore for the nine months ended 31.12.2020.

• Underwriting Loss is ₹ 6,580.30 crore for nine months ended 31.12.2021   as compared to ₹ 4,953.35 crore for nine months ended 31.12.2020.

• Investment Income is ₹  6,735.70 crore for nine months ended 31.12.2021 as compared to ₹ 6,534.65 crore for Nine months ended 31.12.2020.

• Solvency Ratio is 1.80 as on 31.12.2021 as compared to 1.53 as on 31.12.2020.

• The company recorded Loss Before Tax of ₹ 54.63 crore for nine months ended 31.12.2021 as compared to Profit Before Tax of ₹ 1,117.90 crore for nine months ended 31.12.2020.

• Profit After Tax for Nine months ended 31.12.2021 recorded as ₹210.34 crore as compared to Profit After Tax of ₹ 660.0 crore for Nine months ended 31.12.2020.

• Total Assets are ₹ 1,47,275.37 crore as on 31.12.2021 as compared to ₹ 1,33,931.04 crore as on 31.12.2020.

• Net Worth of the company (without fair value change account) recorded at ₹ 22,605.36 crore on 31.12.2021 as against ₹ 21,204.05 crore as on 31.12.2020.

• Net Worth of the company (including fair value change account) recorded as ₹ 53,723.15 crore on 31.12.2021 as against ₹ 45,952.21 crore as on 31.12.2020.

• Combined Ratio is 122.58 % for the Nine months ended 31.12.2021 as against 114.02 % for Nine months ended 31.12.2020.

• Adjusted Combined Ratio is 104.62 % for the nine months ended 31.12.2021 as against 98.82 % for Nine months ended 31.12.2020.

Summary of Revenue and Profit and Loss Account

(₹’ crore)

S No		Quarter ended			Nine Months ended		Year ended
		31.12.21	30.09.21	31.12.20	31.12.21	31.12.20	31.03.21
1	Gross Premium	10,240.00	8,374.72	11,668.51	32,904.65	38,201.56	47,014.38
2	Net Premium	9,332.56	7,450.72	10,485.32	29,718.51	33,956.67	42,197.50
3	Earned Premium	8,907.00	10,410.02	9,139.16	30,671.43	32,292.34	39,865.89
4	Incurred Claims	10,857.83	9,596.31	8,192.95	32,291.54	30,651.56	36,853.75
5	% of Earned Premium	121.9%	92.2%	89.6%	105.3%	94.9%	92.4%
6	Net Commission	377.08	2,160.96	1,916.29	4,947.33	6,284.41	7,984.39
7	% of Net  Premium	4.0%	29.0%	18.3%	16.6%	18.5%	18.9%
8	Exp of Management	55.86	74.60	77.52	192.87	200.52	278.74
9	% of Net Premium	0.6%	1.0%	0.7%	0.6%	0.6%	0.7%
10	Profit/(Loss) on Exchange	21.41	14.91	12.94	190.90	(110.84)	(202.18)
11	Premium Deficiency	8.83	(9.02)	(12.01)	10.89	(1.64)	35.30
12	Underwriting Profit/(Loss)	(2,371.19)	(1,397.94)	(1,022.64)	(6,580.30)	(4,953.35)	(5,488.45)
13	Investment Income (Net of Expenses)	2,271.14	2,669.96	2,624.47	6,735.70	6,534.65	8,820.86
14	Other Income less Outgoings	(1.61)	(58.27)	(84.99)	(210.03)	(463.39)	(169.03)
15	Profit/ (Loss) Before Tax	(101.66)	1,213.75	1,516.84	(54.63)	1,117.90	3,163.38
16	Tax	(73.18)	203.20	529.42	(264.97)	457.90	1,242.94
17	Profit/ (Loss) After Tax	(28.48)	1,010.55	987.42	210.34	660.00	1,920.44
18	Combined Ratio	126.5%	122.2%	108.7%	122.6%	114.0%	112.0%

International and Domestic Business Composition

(₹’ crore)

Gross Premium	Nine months ended 31.12.2021	Share	Nine months ended 31.12.2020	Share	Growth
Domestic	22,471.93	68.3%	25,214.16	66.0%	-10.88%
International	10,432.72	31.7%	12,987.39	34.0%	-19.67%
Total	32,904.65	100.0%	38,201.56	100.0%	-13.87%

Breakup of Gross Premium

(₹’ crore)

Gross Premium	Nine months ended 31.12.2021	Nine months ended 31.12.2020	Growth
A) Fire	9,475.84	11,270.37	-15.92%
B) Miscellaneous  – Total	20,957.83	24,099.78	-13.04%
Misc – Motor	7,154.28	6,739.41	6.16%
Misc – Health	3,021.04	4,234.95	-28.66%
Misc – Agriculture	7,277.51	8,860.06	-17.86%
Misc – Other LOBs	3,505.00	4,265.36	-17.83%
C) Marine	1,394.35	1,941.96	-28.20%
Marine – Cargo	926.95	1,085.69	-14.62%
Marine – Hull	467.40	856.28	-45.41%
D) Life	1,076.63	889.44	21.05%
Total – A+B+C+D	32,904.65	38,201.56	-13.87%

Incurred Claims and Combined Ratio

Particulars	Incurred Claims (₹ crore)		Combined Ratio (%)
	Nine months ended
	31.12.2021	31.12.2020	31.12.2021	31.12.2020
Domestic	20,718.74	20,280.74	114.24%	111.28%
International	11,572.80	10,370.82	139.39%	119.29%
Total	32,291.54	30,651.56	122.58%	114.02%

Particulars	Fire	Motor	Health	Agri	Cargo	Hull	Life
Incurred Claims (₹ crore)
Domestic	3,493.64	2,718.40	3,511.20	6,437.24	227.99	307.85	2,103.04
International	5,260.25	3,015.23	49.60	311.26	710.39	693.82	90.10
Total	8,753.89	5,733.63	3,560.80	6,748.50	938.37	1,001.67	2,193.14
Combined Ratio
Domestic	89.13	101.01	133.81	109.95	96.35	202.20	252.46
International	148.30	128.19	129.02	146.21	138.72	150.00	102.56
Total	118.64	113.81	132.57	111.16	125.35	151.24	236.28

Note:

Combined Ratio = (Net incurred claims/ Net earned premium) + (Management expenses + Commission on reinsurance)/ Net written premium

Net Commission = Commission paid on reinsurance accepted – Commission on reinsurance ceded.

Consolidated Financials of GIC Re

GIC Re’s group includes subsidiary companies namely, GIC Re South Africa, GIC Re Corporate Member, London, and GIC Perestrakhovanie LLC, Moscow. The group also includes three associate companies namely GIC Re Bhutan, India International Insurance Pte Ltd, Singapore and Agriculture Insurance Company of India Ltd. The group performance highlights based on Consolidated Financial Statements for the Nine months ended 31.12.2021 are given below:

• Consolidated Gross Premium Income of the company was ₹ 33,503.07 crore for Nine months ended 31.12.2021 as compared to ₹ 38,577.84 crore for Nine months ended 31.12.2020.

• Investment Income of the group was ₹ 6793.00 crore for Nine months ended 31.12.2021 as compared to ₹ 6534.05 crore for Nine months ended 31.12.2020.

• Consolidated Profit Before Tax for Nine months ended 31.12.2021 was ₹ 28.97 crore as compared to Profit Before Tax of ₹ 1068.86 crore for Nine months ended 31.12.2020.

• Consolidated Profit After Tax for Nine months ended 31.12.2021 was ₹ 450.26 crore as compared to Profit After Tax of ₹ 662.72 crore for Nine months ended 31.12.2020.

• Incurred claims Ratio is 105.1 % for Nine months ended 31.12.2021 as compared to 94.6 % for Nine months ended 31.12.2020.

• Group’s net worth (without fair value change account) for Nine months ended 31.12.2021 is ₹ 25,211.50 crores as compared to ₹ 23,411.14 crore for Nine months ended 31.12.2020

Summary of Revenue and Profit and Loss Account of Consolidated Financials

(₹’ crore)

S No	Particulars	Nine months ended		Year ended
		31.12.2021	31.12.2020	31.03.2021
1	Gross Premium	33,503.07	38,577.84	47,549.85
2	Net Premium	29,947.25	34,057.23	42,353.31
3	Earned Premium	30,853.90	32,389.59	39,984.66
4	Incurred Claims	32,424.24	30,652.22	36,928.92
5	Incurred Claims Ratio (on earned premium)	105.1%	94.6%	92.40%
6	Net Commission	5,007.70	6,316.26	8,024.70
7	Net Commission Percentage (on Net Premium)	16.7%	18.5%	18.90%
8	Expenses of Management	214.96	222.49	307.08
9	Expenses of Management Ratio (on net premium)	0.7%	0.7%	0.70%
10	Profit/(Loss) on Exchange	194.88	(135.30)	(224.26)
11	Premium Deficiency	10.89	(1.64 )	35.3
12	Underwriting Profit/(Loss)	(6,609.01)	(4935.03)	(5,535.60)
13	Investment Income net of expenses	6,793.00	6,534.05	8,822.51
14	Other Income less Outgoings	(155.02)	(530.17)	(217.6)
15	Profit/(Loss) Before Tax	28.97	1,068.86	3,069.32
16	Taxation	(259.85)	458.24	1,244.32
17	Share of Profit in Associate Companies	161.44	52.11	166.6
18	Profit/(Loss) After Tax	450.26	662.72	1,991.59