Mumbai: State-owned reinsurance company General Insurance Corporation of India, or GIC Re, reported 71% drop in net profit for the quarter ended March 31, 2018 mainly due to spike in underwriting losses.During the quarter, net profit rose to Rs 751.6 crore for the quarter ended March 31, 2018 against net profit of Rs 2,572 crore a year earlier.
The company saw combined ratio deteriorate to 104% from 99.7% a year ago due to huge losses from catastrophe in Harvey, Irma and Maria hurricanes in the USA and the Caribbean alongside Mexican earthquake and California wildfires.This year saw catastrophe losses, which hit the insurance and reinsurance industry profitability in a major way, said Alice Vaidyan, chairman at GIC Re.Gross written premium for the quarter fell 8% during the quarter to Rs 8,525 crore.
The company reported incurred claim ratio of 86.5% against 81% due to losses global catastrophe events.
Its gross premium rose 24.5% for the full year to Rs 41,799 crore.
Profit after tax for the full year rose 3% to Rs 3,233.59 crore compared to Rs 3,127.67 crore for the previous year ended 31.03.2017.Solvency margin fell to 1.72 times from 2.4 rimes a year ago.
return on equity deteriorated to 15% from 17.4% a year ago.Shares of the company rose 0.8% from the previous close to Rs 691.60 on the BSE.