GIC Re posts $268.3m net profit for FY2021

Gross premiums during that period fell 7.1%.

The General Insurance Corporation of India (GIC Re) has recorded a consolidated net profit of $268.3m (INR199.16b) for the financial year 2021, according to media reports.

Gross premiums collected during that period fell 7.1% to INR470.14b from INR510.30b in FY2020. Incurred claims also dropped 14.4% to INR368.53b in FY21. 

The incurred claims ratio improved to 92.4%, whilst the underwriting loss shrank to INR54.88b from INR63.67b in FY20.

Investment income rose 24% 24% to INR88.2b compared to INR71.25b in FY2020.

The solvency ratio improved to 1.74 as of 31 March this year.

The insurer said the pandemic has led to uncertainties on its growth front despite better financial performance. It expressed concerns over the pandemic's impact on business and economic growth and its effect on premium volume, particularly from SMEs.