Mumbai: State-run reinsurer GIC Re on Wednesday reported near doubling of its net income to Rs 1,197.4 crore for the March quarter, driven by investment income.

The company’s net income stood at Rs 603.4 crore in the corresponding period of the preceding fiscal.

During the reporting quarter, gross premium increased nearly 14 per cent to Rs 9,217.84 crore from Rs 8,089.35 crore earlier, the company said in a statement.

GIC Re had an underwriting loss of Rs 463.6 crore during the reporting quarter against an underwriting profit of Rs 101.16 crore a year ago.

However, for the full year, the company registered a net loss of Rs 359.09 crore as compared to a net profit of Rs 2,224.31 crore in FY19 as it took a heavy beating in the December quarter.

The firm’s Chairman and Managing Director Devesh Srivastava said worldwide the insurance industry had to settle large claims in FY20 and the domestic industry was no different. The COVID-19 pandemic has only aggravated the situation.

He noted that the strong performance in the fourth quarter offset a large proportion of the heavy losses incurred in the first three quarters of FY20.

The company had a solvency ratio of 1.53 as of March 2020 as against the regulatory mandate of 1.50.

Srivastava also said the company has maintained its market standing in both domestic and foreign businesses.

For the full year, the gross premium income grew 15.35 per cent to Rs 51,030.13 crore from Rs 44,238 crore in FY19.

Investment income rose 11.31 per cent to Rs 7,125.48 crore compared to Rs 6,401.34 crore in FY19.

Srivastava attributed the full year loss to provisioning for investments and increase in agriculture losses.

Net worth (without fair value change account) stood at Rs 20,529.45 crore, down from Rs 22,334.42 crore in FY19. Similarly, total assets came down to Rs 1,16,196.20 crore from Rs 1,18,883.57 crore.

The GIC Re stock closed 1.1 per cent down at Rs 152.95 on the BSE whose benchmark Sensex lost 1.7 per cent, snapping a four-day rally.

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