GIC Re enters top 10 list of global reinsurers

GIC Re has emerged as the 10th largest amongst the top 40 Global Reinsurers, as reported by Standard and Poor’s. The ranking is based on the net premium booked by the reinsurer in 2018. GIC Re demonstrated 24.5 per cent growth in its top line during FY 2018, while amassing a staggering premium of Rs. 41,799 crore. In doing so, it moved up from 12th position to 10th rank, thereby surpassing Korea Re and MS & AD Insurance Group. 

GIC Re Q1FY19 result indicated a healthy growth rate, given its prominence in the domestic market. Its growing insurance penetration is likely to boost the GDP of the country. The company demonstrated a 9.3 per cent growth in Gross Premium Income. It earned a premium of Rs. 18,791.45 crore forQ1FY19 versus Rs. 17,194.76 crore for Q1FY18. The Profit after Tax (PAT) figures exhibited tremendous growth as they stood at Rs. 771.42 crore for Q1FY19 as against Rs. 390.11 crore for Q1FY18. The unannualized Return on Equity (ROE) was 3.5 per cent for Q1FY19 as against 2.1 per cent for Q1FY18. The net worth of the company showed a dramatic improvement by 21.6 per cent, at Rs. 22,297.66 crore in Q1FY19 from Rs. 18,336.91 crore in Q1FY18. 

The government-sponsored crop insurance programme and India’s business portfolios served as a catalyst for GIC Re’s impressive growth since 2016-2017. 

GIC Re is a state-owned reinsurance company in India. Up until the Indian insurance market opened its doors to foreign reinsurers, GIC Re remained the sole reinsurance company in the country. The company is engaged in leading the reinsurance programmes of numerous insurance companies in the Middle East, North Africa and Asia including SAARC countries. 

On Wednesday, the shares of GIC Re opened at Rs. 325.20 per share, and hit a high of Rs. 327.85 per share on the BSE. At 15:04 hours, the stock was trading at Rs. 326.45 per share, down by 0.97 per cent.