In its 40 years of history, for the first time country’s only reinsurer, General Insurance Corporation of India (GIC) has posted a net loss of Rs 2,490 crore in FY’12.
Company’s gross premium for FY’12 stood at Rs 13,618 crore which is the rise of 16% on year-on-year basis. Company’s 39% income was from foreign markets.This loss is the result of exposure to number of catastrophic events abroad such as Japan’s earthquake, floods of Thailand and Australia etc.
In domestic market third party motor pool losses contributed to the loss of the company. On account of third party motor pool company took a hit of Rs 811 crore. Though as per Regulations Company could write-off the losses over the next two years but company absorbed the entire loss this year itself.Going ahead, company is planning to reduce the volume of retrocession business. Retrocession’ business refers to reinsuring global reinsurers. Last year’s losses of the company were mainly due to this business.
GIC currently enjoyes an A- (excellent) rating from A.M. Best, is expecting to maintain its rating in current fiscal despite huge losses.Posted by PolicyMantra on June 6, 2012 at 12:58 pm under News.
Tags: AM Best, General Insurance Corporation, GIC, Japan Earthquake Losses
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