Public sector GIC Re, the only reinsurance company in India till last year, has posted a 10 per cent rise in net profit at Rs 3,127 crore and a gross global premium of Rs 33,585 crore, up 82.2 per cent, for the fiscal 2016-17. “Our higher premium income and profitability during the year can be largely attributed to the huge growth in crop insurance. Our Rs 9,744 crore crop portfolio during the year is a profitable business for us,’’ said Alice Vaidyan, CMD, GIC Re who announced the performance of the company on Tuesday.
The Indian reinsurer — which is preparing for its IPO — also for the first time registered a lower combined ratio of 99.7 per cent in the year 2016-17 as compared to 107.4 per cent in the previous year, Vaidyan said. GIC Re leads the agriculture treaties of 15 of 18 insurance companies. The general insurance industry had mobilised a premiums of over Rs 20,000 crore in crop segment in 2016-17. The premium split between the domestic and the overseas business during 2016-17 was 69 per cent and 31 per cent respectively.