The reinsurance sector in India reported aggregate losses for for the financial year ended 31 March 2020 (FY2020), compared to profits for FY2019, according to the IRDAI's "Annual Report 2019-2020" released recently.
India's only locally incorporated reinsurer GIC Re reported a net loss of INR3,590m for the financial year ended 31 March 2020 (FY2020). This contrasted with a profit after tax of INR22,240m in FY2019.
The total loss of all foreign reinsurance branches was INR11,150m in FY2020 as against profit after tax of INR100m in FY2019. Out of all the foreign reinsurance branches in India, five reported a profit after tax for FY2020 while the remaining foreign reinsurance branches posted losses.
Net written premium of reinsurers increased from INR460,590m in FY2019 to INR542,569m in FY2020 registering a growth of 17.80% (10.69% in FY2019). Foreign branches, including Lloyd’s, recorded an increase of 7.61% while GIC Re recorded 19.64% growth in net written premium.
As of 31 March 2020, the IRDAI has allowed nine foreign reinsurance branches and Lloyds to operate in India.