98% Rise in the Net Profit of General Insurance Corporation in Q1
In the first quarter of this fiscal year, General Insurance Corporation has reported that it has experienced 98 per cent rise in net profit on lower underwriting losses.
In the June quarter, General Insurance Corporation also reported that there was profit after tax of Rs 771.42 crore. However, in the corresponding quarter of last year, GIC reported profit after tax of Rs 390.11 crore.
Last year, the underwriting loss was of Rs 658.47 crore, which fell to fell to Rs 96.37 crore this year. This reflected a sharp improvement in the performance of its core business. The company’s gross domestic premium rose 9.3 per cent to Rs 18,791 crore, and share of the domestic business rose 10.5 per cent to Rs 15,823 crore.
Also, it was noted that the investment income fell to Rs 1,111.31 crore against Rs 1,163.02 crore.
Company’s combined ratio that shows the profitability from core business is said to be stable at 99.9 per cent. Combined ratio below 100 per cent reflects the company is making profit from core insurance. Solvency ratio was at 1.77 times.