The company had clocked a net profit of Rs 251.79 crore in the July-September quarter of the previous fiscal.
State-owned reinsurer General Insurance Corporation of India (GIC Re) posted profit after tax of Rs 1419.11 crore for quarter ended September 30, 2017 as compared to Rs 251.79 crore posted in same quarter last fiscal. This was on account of better underwriting and improved performance in segments like agriculture and marine.
The reinsurer which was listed on the stock exchanges last month posted underwriting profit of Rs 757.36 crore for Q2 compared to loss of Rs 668.36 crore in same period last fiscal.
Alice G Vaidyan, chairman and managing director, GIC Re, said that the company will be a part of the Lloyd's syndicate by the end of this financial year. The solvency ratio stood at 1.72 in H1FY18 compared to 2.92 in same period last fiscal. The combined ratio syppd at 99.4 percent for half year ended September 30, 2017.
"We have been utilising our capital effectively because of which solvency has come down. We would like to maintain it at around 2," she added. The regulatory requirement is 1.5.
The gross domestic premium income of GIC Re saw a 51.4 percent jump tp Rs 16118.08 crore in H1 of FY18 compared to H1FY17. The net profit for H1 FY18 jumped by 89.3 percent to Rs 1,809.22 crore compared to a year ago.
Going forward, Vaidyan said that there are expecting some hardening of reinsurance rates next year due to the impact of the hurricanes in the US. While insurance losses are expected to be $100 billion, she said that GIC Re's exposure is very low and may account for only $15 million in the balance sheet on a net basis.
In terms of the investment book, investment assets increased by 16.2 percent as on September 30,2017 to Rs 72783.54 crore compared to Rs 62,638.68 crore in H1 FY17.GIC Re which has 20.7 percent investments in equity is planning to decrease the exposure and bring it down gradually to 18 percent.