State controlled GIC Re, India's largest reinsurer, has posted a profit after tax of INR3,233.59 crore ($477.4 million) for the year ended 31 March 2018 (FY2018), 3.4% higher compared to INR3,127.67 crore for the previous financial year.
Growth in gross premium income of the company was 24.5% with premium reaching INR41,799.37 crore for FY2018.
In a statement, Mrs Alice Vaidyan, GIC Re's chairman and MD, said that the company's performance was remarkable in respect of premium growth and profitability in FY2018 despite 2017 seeing record insured losses from global catastrophe events. The year saw catastrophe losses from hurricanes Harvey, Irma and Maria in the US and the Caribbean alongside the Mexican earthquake and California wildfires, which hit the profitability of the insurance and reinsurance industry in a major way.
In addition, GIC Re's FY2018 investment income increased by 17.6% to INR5,392.03 crore.
The incurred claims ratio increased from 81.0% in FY2017 to 86.5% in FY2018. The combined ratio was 104.0 % for FY2018 compared to 99.7% for FY2017.
The net worth of the company (without fair value change account) increased by 19.9% to INR21,525.92 crore at 31 March 2018 from 17,946.63 crore on 31 March 2017.
The reinsurer's solvency ratio stood at 1.72 at 31 March 2018, which was above the minimum required solvency ratio of 1.50.
GIC Re's group includes subsidiary companies, namely, GIC Re South Africa, GIC Re Corporate Member, London and three associate companies—namely, GIC Re Bhutan, India International Insurance, Singapore, and Agriculture Insurance Corporation of India.
GIC Re is the leader in the Indian reinsurance market. It is the largest reinsurer in the domestic reinsurance market in India. Although foreign reinsurers have opened branch operations in India since early 2017, GIC Re is expected to maintain its market leadership and market share.
According to Standard and Poor's, in September 2017, GIC Re ranked 12th amongst the top 40 global reinsurers. It has offices in London, Dubai, Kuala Lumpur and a representative office in Moscow. In April 2018, a syndicate supported by GIC Re became operational at Lloyd's of London. The move will help broaden and diversify the reinsurance group's international portfolio. GIC Re's dominance of the Indian market stems from continued obligatory cessions and the order of preference; a long-term relationship with the Indian market; and a zest for growth and opportunities.