GIC Re, India’s national reinsurer, is on a growth trajectory, having achieved an impressive growth of 82.2% during the fiscal year ended 31 March 2017 (FYE17).
Mrs Alice G Vaidyan, Chairman and Managing Director of GIC Re, announcing the financial results of the company at a press conference in Mumbai, said: “During 2016-17, the Corporation wrote a gross global premium of INR33,585 crore (US$5.2 billion) registering a growth of 82.2 % over the previous year. The gross premium income of the Corporation during 2015-16 was INR18,436 crore.”
The premium split between the domestic and the overseas business of the Corporation during FYE17 was 69% and 31% respectively.
Mrs Vaidyan also said: “It is heartening that for the first time GIC Re has achieved a sub-100 combined ratio during the year.” GIC Re registered a combined ratio of 99.7% in FYE17 as compared to 107.4% in the previous year.
GIC Re’s profit before tax for FYE17 was INR3,624 crore (US$558.8 million) which was an increase of 22% over that of the previous year. Profit after tax was INR3,127 crore.
PMFBY a game changer
The Corporation’s creditable performance received a boost from Pradhan Mantri Fasal Beema Yojana (PMFBY), the Indian government’s agriculture insurance scheme that was introduced in 2015.
PMFBY has been a game changer for crop insurance and the insurance industry in India. GIC Re leads the agriculture treaties of 15 of 18 Indian insurance companies that write agriculture business. The reinsurer wrote a premium of INR9,744 crore (US$1.5 billion) from the agriculture segment in FYE17.
Growth in investments, net worth and assets
While the success of the agriculture portfolio has contributed immensely to the Corporation’s remarkable performance, GIC Re’s growth without the agriculture portfolio during the year would be around 40%, which is also noteworthy.
Total investments at 31 March 2017 stood at INR39,126 crore as compared to INR34,050 crore 12 months previously.
The net worth of the Corporation stood at INR47,983 crore at 31 March 2017 (INR38,281 crore at 31 March 2016) which included fair value change account, registering a growth of 25.3%.
GIC Re’s assets rose to INR94,949 crore at the end of March 2017 as compared to INR79,554 crore a year earlier, registering a growth of 19.4%. The year ended with a solvency ratio of 2.4.
12th largest reinsurer globally
GIC Re has also moved up two steps in the global pecking order of reinsurers and is today ranked the 12th largest reinsurer globally.
During the year GIC Re, also set up an office at the International Financial Services Centre in Gujarat International Finance Tec-City (GIFT City). A