Page 7 - Insurance Times July 2024

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GIC Re net profit rises by 3% in March quarter to Kumar Aggarwal, Managing Director
(MD) and Chief Executive Officer (CEO)
Rs. 2,642 crore of SGIC.
GIC Re 3% increase in net profit to Rs 2,642 crore for the fourth quarter The company moved out of crop insur-
ended March 2024 compared to Rs 2,564 crore in the same quarter a year ance business in 2015-16 owing to
earlier. During the quarter, the company collected a gross premium of Rs heavy losses. The current re-entry is
8,724 against Rs 7,370 crore in the year-ago period, GIC Re said in a regu- mainly due to the government policy
latory filing. of capping losses in crop insurance. In
Total income of the re-insurer, however, declined to Rs 9,157 crore in the the non-motor segment, it is also fo-
March quarter compared to Rs 9,259 crore in the same quarter a year ago. cusing on the small and medium enter-
prise (SME) segment like fire and engi-
The net commission improved to Rs 1,491 crore compared to Rs 824 crore
neering.
in the corresponding quarter of the previous fiscal.
For the entire 2023-24, GIC Re recorded a 3% rise in net profit to Rs 6,497
crore from Rs 6,313 crore in the preceding financial year. IPL Insurance claims jumps

The solvency Ratio increased to 3.25 from 2.61 at the end of March 2023. to Rs. 150 crore
Total assets of the company rose to Rs 1,78,286 crore against Rs 1,57,125 Insurers are facing a surge in claims
crore in the previous year. from the IPL cricket tournament after
Networth of the company (including fair value change account) recorded a gap of five years. So far, insurers have
as Rs 81,330 crore on March 31, 2024, as against Rs 63,750 crore at the received around Rs 150 crore in claims
end of March last year. from IPL due to rain-related match
washouts and player injuries.

Shriram General Insurance At present, the share of its motor busi- This year, the tournament took Rs
ness is around 91.5 per cent and non- 10,000 crore insurance cover from
plans re-entry in crop biz motor contributes the remaining 8.5 New India Insurance, National Insur-

A month after South African financial per cent. It plans to increase the share ance, and United Insurance, insuring
services group Sanlam increased its of non-motor business to 15 per cent against revenue losses from events like
stake in Shriram General Insurance by 2026-27. rain cancellations. Matches between
Company (SGIC), SGIC said it is in the Gujarat Titans and Kolkata Knight Rid-
"We want to go back to the crop busi-
process of diversifying its product bas- ness also, if it is based on our terms and ers, Rajasthan Royals and KKR, and
ket. Sunrisers Hyderabad and Gujarat Ti-
conditions. If we get into the crop busi-
SGIC is all set to re-enter the crop busi- ness, we can even achieve 15 per cent tans, were affected due to rains.
ness and also expand its presence in during the current year. In terms of With the tournament entering the
the non-motor segment to 15 per cent. health, we taking baby steps," said Anil qualifiers and eliminator stages, rain

The Insurance Times July 2024 7