The country’s largest reinsurance company – General Insurance Corporation of India listed on the stock exchanges in October 2017, and now it is issuing both dividend and bonus share for investors for the year ended March 31, 2018.
It has recommended a dividend of Rs 13.5 per equity share of face value Rs 5 each (270 %) and issue of bonus shares in the ratio of 1:1, subjected to the shareholders’ approval.
A modest 3.4 % rise in net profit at Rs 3,233.58 crore for year ended March 2018, against Rs 3,127.67 crore in the year-ago period on the back of a rise in incurred claims.
Gross premium during the year stood at Rs 41,799.37 crore, a growth of 24.5 %. Incurred claims were Rs 32,953.55 crore against Rs 21,646.41 crore a year ago.
Alice Vaidyan, chairman and managing director, mentioned in a statement that during 2017 there was a rise in losses on account of natural calamity such as the Harvey, Irma and Maria in the US and the Caribbean, the Mexican earthquakes and the California wildfires that hit the profitability of the industry.
For the quarter ended March 31, 2018, the net profit of the reinsurer was Rs 751.60 crore against a profit of Rs 2,572.85 crore in the year-ago period.
“Worldwide, insurance premium is expected to grow at about 3 per cent in 2018 and 2019. A major growth engine for this sector will be the emerging markets,” stated by GIC Re.
The company’s portfolio is spread among property, motor, agriculture, marine, engineering, aviation, health and liability, among others.
