The reinsurer posted underwriting loss of Rs 2,264.88 crore in Q2FY19, compared to an underwriting profit of Rs 703.74 crore a year ago.
State-owned reinsurer General Insurance Corporation of India (GIC Re) posted a 64 percent year-on-year (YoY) drop in its September quarter net profit at Rs 513.84 crore due to an underwriting loss impacting the company's books.
GIC's underwriting loss was at Rs 2,264.88 crore in Q2FY19, compared to an underwriting profit of Rs 703.74 crore a year ago.
Underwriting loss refers to a situation when the premium collected is lower than the claims received. For instance, if the loss ratio is 120 percent, then the company pays Rs 120 as the claim for every Rs 100 received as premium.
At the end of H1FY19, the gross premium was up 11.1 percent YoY to Rs 27,117.40 crore. Of this, the share of the domestic market was 76.20 percent while that of the international market was 23.8 percent.
The combined ratio rose to 110 percent in H1FY19 compared to 99.7 percent in the year-ago period.
The underwriting performance of individual segments was also impacted in Q2. In motor insurance, the underwriting loss jumped from Rs 27.26 crore in Q2FY18 to Rs 374.74 crore in Q2FY19.
Similarly, losses in health insurance rose to Rs 409.04 crore in Q2 compared to Rs 158.03 crore a year ago. Aviation also had its underwriting losses jump more than 7 times to Rs 348.81 crore in Q2FY19 compared to Rs 44.25 crore a year ago.The net worth of the company (without fair value change account) increased by 14.8 percent to Rs 21,297.78 crore on 30.09.2018 from Rs 18,549.91 crore a year ago. The growth in net worth (including fair value change account) was 3.6 percent YoY at Rs 51,266.29 crore at the end of the second quarter.The Great Diwali Discount!
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