GIC Re posts Rs 486 crore loss on DHFL, IL&FS
General Insurance Corporation (GIC Re), the country’s national reinsurer, reported a loss of Rs 486 crore citing high provisions for investment in DHFL & IL&FS. The reinsurer also saw a 50% jump in underwriting losses due to flood claims and losses in crop insurance. The corporation had posted a net profit of Rs 1,285 crore in the same quarter last year. “Against the backdrop of severe claims worldwide during the year 2019-20, higher agriculture claims and also flood claims in various parts of India, in the quarter ended September, underwriting performance resulted in underwriting loss to the corporation,” it said in a release. “The reduction in profit is because of provision of IL&FS (Q1), DHFL and reduction in other income such as exchange gains and provisions for increase in agriculture losses,” the statement said. Underwriting losses hit Rs 3,154 crore as against Rs 2,098 crore in the year-ago period. Besides domestic claims, GIC Re also lost on account of global claims as it accepts inward reinsurance from global companies.
Tags : ALLIED