GIC Re posted a 63.8 per cent drop in its net profit to Rs. 513.84 crore for the second quarter of the fiscal due to higher underwriting losses.
Its net profit stood at Rs. 1,419.11 crore as on September 30, 2017, and it had also reported a 98 per cent rise in net profit for the first quarter of the fiscal at Rs. 771.42 crore.
GIC Re has also reported a near 29 per cent drop in net profit to Rs. 1,285.27 crore for the first half of the financial year 2018-19 as against a net profit of Rs. 1,809.22 crore a year ago.
The re-insurer’s underwriting losses amounted to Rs. 2,264.88 crore for the July-September quarter of this fiscal, as compared with a profit of Rs. 703.74 crore in the same quarter a year ago.
Its underwriting losses saw a sharp increase across almost all segments including motor, aviation, engineering, health and marine cargo.
However, its gross premiums written rose 15.5 per cent to Rs. 8,325.95 crore for the quarter ended September 30, as against Rs. 7,209.61 crore for the same period of 2017-18.
During the reporting quarter, its total income rose to Rs. 12,879.90 crore from Rs. 10,714.69 crore a year ago. “Other income includes forex gain of Rs. 164.87 crore for the half year ended September 30, 2018,” GIC said.
It had a solvency ratio of 1.73 at the end of the reporting quarter, which is in line with 1.72 a year ago. It is also well above the minimum required solvency ratio of 1.5 times.