General Insurance Corporation Of India · NSE:GICRE
General Insurance Corporation Of India — Q4 FY2024 Earnings Presentation
25 slides from General Insurance Corporation Of India's earnings presentation, May 29, 2024
Slide 1: Stock exchange filing cover letter
Ref. No.: GIC-HO/BOARD/SE-Q4-IMP/59/2024-25 May 29, 2024 To The Manager The Manager Listing Department Listing Department BSE Limited The National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Tower Exchange Plaza, 5th Floor, Plot C/1, Dalal Street G Block, Bandra Kurla Complex Mumbai – 400001 Mum
Slide 2: Q4 FY 2024 Financial Results Presentation
Q4 FY 2024 Financial Results Presentation Mumbai, May 2024
Slide 3: Safe Harbour
Safe Harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 4: Agenda
Agenda 1 Market Review 2 Strategic Overview 3 Financial Performance 3
Slide 5: Market Review
area fee GIC Re Market Review URS wero fr Fars General Insurance Corporation of India
Slide 6: How Reinsurance Works?
How Reinsurance Works? Reinsurers retrocede part of the Retrocessionaire reinsurance premiums to limit risk exposure Primary insurers cede actuarial and Reinsurers catastrophe risks to limit undiversifiable Part of Transfer of Risk risk exposure premium Part of benefits revenue expenses Preferably s
Slide 7: Reinsurance Industry - Role
Reinsurance Industry - Role GIC Re has been playing a key role in the Indian reinsurance market and able to maintain about 60% share in the Indian reinsurance market. Reinsurance support aims at Reinsurance is the foundation for economic growth 1 through risk transfer mechanism Providing insurers ca
Slide 8: Global Scenario
Global Scenario Gross Written Premium* growth, by region ▪ The global reinsurance market size is expected to grow from $574.27 billion in CAGR 2010-20 2020 2022 to $895.40 billion in 2027 at a CAGR of 9.1%. 9.0% 2.90% 5.3%1.60% ▪ Reinsurance rates rose sharply in the 1.2% 2.6% 3.1% January 2023 rene
Slide 9: Reinsurance industry in India
Reinsurance industry in India GIC Re is the largest Net retention of general Gross written premiums player in India and leads insurers decreased of general insurance most of the domestic marginally industry in 2023-24: companies' treaty from 71.9% in 2021-22 ₹2,89,737.87 crore programmes and to 71.7
Slide 10: Domestic Operating Environment
Domestic Operating Environment India’s general Reinsurance GIC Re expected insurance market premiums in to maintain is estimated to India is expected market leadership grow at a to touch going forward on compound Rs 989.75 billion strong financials, annual growth by 2025 adequate rate (CAGR) of capa
Slide 11: Combined Ratio – Indian non-life insurance
Combined Ratio – Indian non-life insurance Combined Ratio - Overall 122.0% 119.3% 117.8% 118.8% 114.2% 117.6% 113.9% 116.1% 112.0% 111.6% 110.6% 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Combined Ratio (Split by Type of Insurer) 120.2% 120.3% 115.9% 118.
Slide 12: Strategic Overview
area fee GIC Re Strategic Overview URS wero fr Fars General Insurance Corporation of India
Slide 13: Competitive Strategy Pillars
Competitive Strategy Pillars ▪ Geographical Diversification ▪ Lines of Business Diversification ▪ Healthy Investment Income Prudent Efficient Asset ▪ Continued focus on Risk Selection ▪ Diversified Investment Portfolio Underwriting Management ▪ Deployment of Modelling and Pricing ▪ Effective Asset L
Slide 14: Strategic Approach
Strategic Approach ▪ GIC Re to leverage its position of 16th rank based on the scale it affords and excellent credit rating domestically. ▪ The Company stands to benefit from price hardening in select segments / geographies. ▪ Indian market with its unprecedented growth, particularly in agriculture
Slide 15: Financial Performance
area fee GIC Re Financial Performance URS wero fr Fars General Insurance Corporation of India
Slide 16: Financials at a glance
Financials at a glance ₹ crore Particulars Q4 FY24 Q4 FY23 FY24 FY23 Gross Premium 8,723.65 7,369.74 37,181.76 36591.59 Profit After Tax 2,642.48 2,563.84 6,497.30 6,312.50 Incurred Claims Ratio 68.9% 73.7% 92.3% 91.4% Combined ratio 89.26% 89.15% 111.82% 109.31% Solvency Ratio (times) 3.25 2.61 3.2
Slide 17: Key Financials
Key Financials ₹ crore Particulars Q4 FY24 Q4 FY23 FY24 FY23 Gross Premium 8,723.65 7,369.74 37,181.76 36,591.59 Net Premium 7,904.46 6,234.53 33,955.79 33,644.43 Earned Premium 7,227.11 7,659.11 33,576.07 35,808.01 Incurred Claims 4,981.91 5,646.12 30,980.41 32,739.38 % of Earned Premium 68.90% 73.
Slide 18: Break-up of Gross Premium
Break-up of Gross Premium ₹ crore Gross Premium FY24 FY23 Growth % A) Fire 12,771.40 13,169.63 -3.0% B) Miscellaneous - Total 21,283.24 20,720.78 2.7% Misc - Motor 7,110.93 5,995.43 18.6% Misc - Health 5,728.68 4,887.62 17.2% Misc - Agriculture 3,685.36 5,074.03 -27.4% Misc - Other LOBs 4,758.27 4,7
Slide 19: Segment Wise Combined & Loss Ratio – FY24
Segment Wise Combined & Loss Ratio – FY24 ₹ crore Fire Motor Health Agri Cargo Hull Life Gross Premium Domestic 6,911.25 4,466.27 5,621.68 3,601.11 433.18 200.36 1,471.14 International 5,860.15 2,644.66 107.00 84.25 564.15 310.71 147.58 Total 12,771.40 7,110.93 5,728.68 3,685.36 997.33 511.06 1,618.
Slide 20: Domestic Business Mix
Domestic Business Mix 60% 60% 57% 75% 72% 73% 70% 40% 40% 43% 25% 28% 27% 30% FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 Obligatory Non-Obligatory • Obligatory cessions maintained at 4% with no monetary limits on cessions • GIC Re Health portfolio comprises mostly of Obligatory cessions, some selecti
Slide 21: Key Financials (1/2)
Key Financials (1/2) Gross Premium ₹ crore Net Premium ₹ crore 46,655.41 51,030.13 42,197.50 47,014.38 38,799.03 43,208.46 33,644.43 33,955.79 36,591.59 37,181.76 FY 20 FY 21 FY 22 FY 23 FY 24 FY 20 FY 21 FY 22 FY 23 FY 24 Incurred Claims Ratio Profit After Tax ₹ crore 97.5% 6,312.50 6,497.30 93.2%
Slide 22: Key Financials (2/2)
Key Financials (2/2) Net Worth Excl. FVC ₹ crore Net Worth Incl. FVC ₹ crore Policyholders’ Funds ₹ crore 37,581.78 81,330.25 85,914.85 32,356.08 81,810.00 22,452.34 63,749.61 24,439.72 55,657.73 79,167.15 20,529.45 49,643.19 76,737.88 35,425.87 72,829.68 FY 20 FY 21 FY 22 FY 23 FY 24 FY 20 FY 21 FY
Slide 23: Appendix
area fee GIC Re Appendix URS wero fr Fars General Insurance Corporation of India 22
Slide 24: Glossary
Glossary Ceding Company (Cedant) The company that transfers its risk to a reinsurer Combined Ratio The sum of the loss ratio and the expense ratio Earned Premiums The portion of the premium for which protection has been provided A form of reinsurance, which, subject to a specified limit, indemnifies
Slide 25: Thank You
Thank You For details please contact: Sneha Nair Binay Sarda Assistant General Manager Ernst & Young LLP P: +91 22 2286 7504 T: + 91 9920893764 E: janet@gicre.in E: binay.sarda@in.ey.com 24
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