Mumbai: GIC Re announced financial performance for the year ended 31st March 2023 at the Board Meeting of company held in Mumbai today.
We give below the details of our financial performance for the Year ended 31.03.2023:
• Gross Premium Income of the company was ₹ 36,591.59 crore for the year ended 31.03.2023 as compared to ₹ 43,208.46 crore for the year ended 31.03.2022.
• Underwriting Loss reduced to ₹ 2,341.37 crore for the year ended 31.03.2023 as compared to ₹ 4,266.11 crore for the year ended 31.03.2022.
• Investment Income is ₹ 10,594.00 crore for the year ended 31.03.2023 as compared to ₹ 9562.29 crore for the year ended 31.03.2022.
• Solvency Ratio is 2.61 as on 31.03.2023 as compared to 1.96 as on 31.03.2022.
• The company recorded Profit Before Tax of ₹ 7749.44 crore for the year ended 31.03.2023 as compared to Profit Before Tax of ₹ 3,560.14 crore for the year ended 31.03.2022.
• Profit After Tax for the year ended 31.03.2023 recorded as ₹ 6312.50 crore as compared to Profit After Tax of ₹ 2,005.74 crore for the year ended 31.03.2022.
• Total Assets are ₹ 1,57,124.60 crore as on 31.03.2023 as compared to ₹ 1,44,887.37 crore as on 31.03.2022.
• Net Worth of the company (without fair value change account) recorded at ₹ 30,306.58 crore on 31.03.2023 as against ₹ 24,439.72 crore as on 31.03.2022.
• Net Worth of the company (including fair value change account) recorded as ₹ 61,700.11 crore on 31.03.2023 as against ₹ 55,657.73 crore as on 31.03.2022.
• Combined Ratio is 109.31% for the year ended 31.03.2023 as against 112.08% for the year ended 31.03.2022.
• Adjusted Combined Ratio is 86.95% for the year ended 31.03.2023 as against 93.11 % for the year ended 31.03.2022.
Summary of Revenue and Profit and Loss Account
| S No | Particulars | Quarter ended | Year Ended | |||
| 31.03.23 | 31.12.22 | 31.03.22 | 31.03.23 | 31.03.22 | ||
| 1 | Gross Premium | 7,369.74 | 10,099.40 | 10,303.81 | 36,591.59 | 43,208.46 |
| 2 | Net Premium | 6,234.53 | 9,561.18 | 9,080.52 | 33,644.43 | 38,799.03 |
| 3 | Earned Premium | 7,659.11 | 8,648.76 | 8,621.98 | 35,808.01 | 39,293.40 |
| 4 | Incurred Claims | 5,646.61 | 8,380.50 | 4,334.31 | 32,739.38 | 36,625.85 |
| 5 | % of Earned Premium | 73.7% | 96.9% | 50.3% | 91.4% | 93.2% |
| 6 | Net Commission | 823.93 | 1,705.63 | 2,003.48 | 5,610.51 | 6,950.82 |
| 7 | % of Net Premium | 13.2% | 17.8% | 22.1% | 16.7% | 17.9% |
| 8 | Expenses of Management | 138.34 | 140.79 | 178.41 | 404.44 | 371.28 |
| 9 | % of Net Premium | 2.2% | 1.5% | 2.0% | 1.2% | 1.0% |
| 10 | Profit/(Loss) on Exchange | (149.61) | 43.08 | 209.79 | 596.40 | 401.41 |
| 11 | Premium Deficiency | 10.86 | 2.17 | 2.09 | (8.54) | 12.98 |
| 12 | Underwriting Profit/(Loss) | 889.77 | (1,537.24) | 2,313.47 | (2,341.37) | (4,266.11) |
| 13 | Investment Income (Net of exp) | 3,667.16 | 3,025.66 | 2,826.59 | 10,594.00 | 9,562.29 |
| 14 | Transfer to Catastrophe Reserve | 512.55 | – | – | (512.55) | – |
| 15 | Other income less outgoings | (98.00) | 107.37 | (1,526.01) | 9.37 | (1,736.04) |
| 16 | Profit/ (Loss) Before Tax | 4,458.93 | 1,595.79 | 3,614.05 | 7,749.44 | 3,560.14 |
| 17 | Tax | 1,041.86 | 395.08 | 1,819.37 | 1,436.94 | 1,554.40 |
| 18 | Profit/ (Loss) After Tax | 3,417.07 | 1,200.71 | 1,794.68 | 6,312.50 | 2,005.74 |
| 19 | Combined Ratio | 89.16% | 116.21% | 74.30% | 109.31% | 112.08% |
International and Domestic Business Composition
(₹’ crore)
| Gross Premium | Year Ended 31.03.2023 | Share | Year Ended 31.03.2022 | Share | Growth |
| Domestic | 25,384.50 | 69% | 28,018.79 | 65% | -9% |
| International | 11,207.09 | 31% | 15,189.67 | 35% | -26% |
| Total | 36,591.59 | 100% | 43,208.46 | 100% | -15% |
Breakup of Gross Premium
| Gross Premium | Year Ended 31.03.2023 | Year Ended 31.03.2022 | Growth | ||
| A) Fire | 13,169.63 | 12,949.11 | 1.7% | ||
| B) Miscellaneous – Total | 20,720.78 | 26,907.72 | -23.0% | ||
| Misc – Motor | 5,995.43 | 9,742.28 | -38.5% | ||
| Misc – Health | 4,887.62 | 4,517.81 | 8.2% | ||
| Misc – Agriculture | 5,074.03 | 7,911.47 | -35.9% | ||
| Misc – Other LOBs | 4,763.70 | 4,736.17 | 0.6% | ||
| C) Marine | 1,171.66 | 1,900.86 | -38.4% | ||
| Marine – Cargo | 611.39 | 1,244.02 | -50.9% | ||
| Marine – Hull | 560.27 | 656.84 | -14.7% | ||
| D) Life | 1,529.52 | 1,450.76 | 5.4% | ||
| Total – A+B+C+D | 36,591.59 | 43,208.46 | -15.3% |
Incurred Claims and Combined Ratio
| Particulars | Incurred Claims (₹ crore) | Combined Ratio (%) | ||
| Year ended | ||||
| 31.03.2023 | 31.03.2022 | 31.03.2023 | 31.03.2022 | |
| Domestic | 18,853.69 | 22,580.53 | 94.91% | 103.40% |
| International | 13,885.69 | 14,045.32 | 137.91% | 127.14% |
| Total | 32,739.38 | 36,625.85 | 109.31% | 112.08% |
| Particulars | Fire | Motor | Health | Agri | Cargo | Hull | Life |
| Incurred Claims (₹ crore) | |||||||
| Domestic | 3,390.90 | 3,469.71 | 3,919.18 | 4,931.41 | 234.97 | 78.00 | 1,409.32 |
| International | 7,046.04 | 4,441.12 | (11.33) | 122.13 | 73.61 | 725.78 | 183.67 |
| Total | 10,436.94 | 7,910.83 | 3,907.86 | 5,053.54 | 308.59 | 803.78 | 1,593.00 |
| Combined Ratio | |||||||
| Domestic | 88.05 | 99.78 | 99.75 | 103.41 | 72.69 | 43.90 | 104.97 |
| International | 135.94 | 147.73 | (30.36) | 101.19 | 131.01 | 233.73 | 114.95 |
| Total | 114.27 | 121.11 | 99.11 | 103.21 | 74.15 | 157.77 | 106.24 |
Note:
Combined Ratio = (Net incurred claims/ Net earned premium) + (Management expenses + Commission on reinsurance)/ Net written premium
Net Commission = Commission paid on reinsurance accepted – Commission on reinsurance ceded.
Consolidated Financials of GIC Re
GIC Re’s group includes subsidiary companies namely, GIC Re South Africa, GIC Re Corporate Member, London, and GIC Perestrakhovanie LLC, Moscow. The group also includes three associate companies namely GIC Re Bhutan, India International Insurance Pte Ltd, Singapore and Agriculture Insurance Company of India Ltd. The group performance highlights based on Consolidated Financial Statements for the year ended 31.03.2023 are given below:
- Consolidated Gross Premium Income of the company was ₹ 37,128.75 crore for the year ended 31.03.2023 as compared to ₹ 44,034.37 crore for the year ended 31.03.2022.
- Investment Income of the group was ₹10,664.75 crore for the year ended 31.03.2023 as compared to ₹ 9,627.38 crore for the year ended 31.03.2022.
- Consolidated Profit Before Tax for the year ended 31.03.2023 was ₹ 8031.18 crore as compared to Profit Before Tax of ₹3,754.65 crore for the year ended 31.03.2022.
- Consolidated Profit After Tax for the year ended 31.03.2023 was ₹ 6,907.31 crore as compared to Profit After Tax of ₹ 2,386.28 crore for the year ended 31.03.2022.
- Incurred claims Ratio is 90.88% for the year ended 31.03.2023 as compared to 92.79% for the year ended 31.03.2022.
- Group’s net worth (without fair value change account) for the year ended 31.03.2023 is ₹ 33,681.37 crores as compared to 27,226.00 crore for the year ended 31.03.2022.
Summary of Revenue and Profit and Loss Account of Consolidated Financials
(₹’ crore)
| S No | Particulars | Year Ended | |
| 31.03.2023 | 31.03.2022 | ||
| 1 | Gross Premium | 37,128.75 | 44,034.37 |
| 2 | Net Premium | 33,754.57 | 39,119.16 |
| 3 | Earned Premium | 35,973.53 | 39,556.83 |
| 4 | Incurred Claims | 32,691.60 | 36,703.45 |
| 5 | Incurred Claims Ratio (on earned premium) | 90.88% | 92.79% |
| 6 | Net Commission | 5,650.67 | 7,026.11 |
| 7 | Net Commission Percentage (on Net Premium) | 16.74% | 17.96% |
| 8 | Expenses of Management | 440.02 | 403.38 |
| 9 | Expenses of Management Ratio (on net premium) | 1.30% | 1.03% |
| 10 | Profit/(Loss) on Exchange | 607.73 | 400.38 |
| 11 | Premium Deficiency | (8.54) | 12.98 |
| 12 | Underwriting Profit/(Loss) | (2,192.49) | (4,188.70) |
| 13 | Investment Income net of expenses | 7,529.18 | 7,379.88 |
| 14 | Catastrophe Reserve | 512.55 | – |
| 15 | Operating Profit/(Loss) | 4,824.14 | 3,191.18 |
| 16 | Investment income (Shareholder’s Fund) | 3,135.58 | 2,247.50 |
| 17 | Foreign Exchange Gain/(Loss) | 315.06 | 134.23 |
| 18 | Other Income | 189.39 | 20.50 |
| 19 | Other Outgo | 432.99 | 1,838.75 |
| 20 | Profit/(Loss) Before Tax | 8,031.18 | 3,754.65 |
| 21 | Taxation | 1,454.02 | 1,555.89 |
| 22 | Share of Profit in Associate Companies | 330.15 | 187.52 |
| 23 | Profit/(Loss) After Tax | 6,907.31 | 2,386.28 |
