Kathmandu. GIC Ri, the only Indian reinsurer, reported a 17 per cent year-on-year decline in net profit. Its profits have shrunk due to high risk losses and combined ratios.
The state-owned reinsurer posted a net profit of Rs 2,183 crore for the fourth quarter ended March 25, 2020.
According to The Asian Insurance Post, the board of directors of GIC Ri on Monday announced a record dividend of Rs 10 (or 200 per cent) per share with a face value of Rs 5 for the last year.
However, led by the health portfolio, the 10th largest global reinsurer managed to increase its total insurance revenue by 20 per cent to Rs 10,367 crore in the fourth quarter.
It competes with a dozen foreign reinsurance branches around the world, including two reinsurers in Nepal, in the domestic market. In the fourth quarter, excluding expenditure, it increased its income from its investment by about 30 percent to Rs 3,903 crore.
The reinsurer recorded an insurance loss of Rs 392 crore in the last quarter. In the same period of the previous year, the insurance of Rs 570 crore was in profit.
With higher claim payments, the combined ratio of GIC Re in the fourth quarter rose to 103.56 per cent from 89.26 per cent in the same quarter of FY23.
The company’s claim payments increased by 43 per cent to Rs 7,134 crore.
The reinsurer has increased its disaster fund by transferring Rs 598 crore in the last quarter of the last financial year 25.
