General Insurance Corporation Of India · NSE:GICRE
General Insurance Corporation Of India — Investor Presentation (October 2023)
28 slides from General Insurance Corporation Of India's investor presentation, Oct 16, 2023
Slide 1: Exchange cover letter: Investors' Presentation
Ref. No.: GIC-HO/BOARD/SE-NDR01-IMP/183/2023-24 Date: October 16, 2023 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 Mumb
Slide 2: Corporate Presentation October 2023
Corporate Presentation October 2023
Slide 3: Disclaimer
Disclaimer This presentation is issued by General Insurance Corporation of India (the “Company”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute any recommend
Slide 4: 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 5: Reinsurance Industry Overview
Reinsurance Industry Overview 4
Slide 6: Reinsurance Industry Overview: Understanding How Reinsurance Works
Reinsurance Industry Overview Understanding How Reinsurance Works Benefits expenses Part of benefits expenses 1 2 3 4 1 Policyholder - Individual risk exposures Policyholders Direct Insurers Reinsurers Retrocessionaire Direct Insurer - Preferably similar risks with independent 2 loss events to obtai
Slide 7: Reinsurance Industry Overview – Global Scenario
Reinsurance Industry Overview – Global Scenario Strong Gross Written Premium* Growth Envisaged in Future CAGR 2021-31 Life CAGR 2021-31 P&C 8.9% 7.9% 7.3% 6.8% 5.6% 4.8% 4.6% 3.1% 2.7% 3.4% 1.3% 1.5% Rest of the world Japan Asia ex Japan Western Europe North America World Global Reinsurance Sector –
Slide 8: Reinsurance Industry – Indian Scenario
Reinsurance Industry – Indian Scenario Under Penetrated Insurance Industry in India Poised to Grow in Future Significant Insurance under-penetration in India General Insurance GWP grew at 12% since FY21 Retention Ratio of General Insurance Industry Insurance Penetration (%) INR Cr Gross Written Prem
Slide 9: Reinsurance Industry – Framework in India
Reinsurance Industry – Framework in India Framework of Reinsurers in India Indian Reinsurers (GIC Re) Foreign Reinsurance Branches (FRBs) Cross Border Reinsurers (CBRs) ✓ Only One Indian Reinsurer registered with the ✓ Insurance Law (Amendment) Act, 2015 ✓ Insurers with no physical presence in India
Slide 10: GIC Re Overview, Strength and Strategies
GIC Re Overview, Strength and Strategies 9
Slide 11: General Insurance Corporation of India (GIC Re) – Overview
General Insurance Corporation of India (GIC Re) – Overview General Insurance Corporation of India - GIC was formed under GIBNA of 1972 for the purpose of superintending, controlling, and carrying on the business of General Insurance in India Rank 16th B++ (Good) Largest Global A.M. Best Largest rein
Slide 12: GIC Re – Segment Mix and Business Mix
GIC Re – Segment Mix and Business Mix International and Domestic Business Composition Gross Premium – Geographic Mix Combined Ratio - Mix 114% 112% 112% 109% 138% 127% 29% 36% 35% 31% 113% 119% 110% 115% 103% 95% 71% 64% 65% 69% FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Domestic International Domestic
Slide 13: GIC Re – Product Mix (1/4)
GIC Re – Product Mix (1/4) Product Mix - Gross Premium 12% 11% 13% 3% 3% 30% 30% 4% 36% 19% FY21 23% FY22 16% FY23 3% 2% 2% 12% 13% 20% 10% 3% 18% 14% 2% 2% Fire Marine Hull Marine Cargo Agriculture Health Motor Life Misc Fire Reinsurance Business Gross Premium Incurred Claims Combined Ratio INR Cr
Slide 14: GIC Re – Product Mix (2/4)
GIC Re – Product Mix (2/4) Motor Reinsurance Business Gross Premium Incurred Claims Combined Ratio INR Cr INR Cr 9,742 8,847 7,911 7,110 121.1% 6,295 107.7% 99.3% 5,995 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Health Reinsurance Business Gross Premium Incurred Claims Combined Ratio INR Cr INR Cr
Slide 15: GIC Re – Product Mix (3/4)
GIC Re – Product Mix (3/4) Agriculture Reinsurance Business Gross Premium Incurred Claims Combined Ratio INR Cr INR Cr 111.6% 9,199 8,986 7,911 6,469 5,074 5,054 103.7% 103.2% FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Marine Cargo Reinsurance Business Gross Premium Incurred Claims Combined Ratio
Slide 16: GIC Re – Product Mix (4/4)
GIC Re – Product Mix (4/4) Marine Hull Reinsurance Business Gross Premium Incurred Claims Combined Ratio INR Cr INR Cr 158.4% 157.8% 1,073 1,089 967 121.1% 804 657 560 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Marine Hull and Offshore Life Energy Reinsurance Reinsurance Business Business Gross Pr
Slide 17: GIC Re – Key Strengths
GIC Re – Key Strengths ▪ Significant ownership by the Government of India ▪ ~60% market share in the Indian reinsurance ▪ Healthy investment income Only Indian market Efficient Asset ▪ Diversified investment portfolio Reinsurance Player ▪ Reinsures every non-life insurance player in India Management
Slide 18: Strategic Approach and Way Forward (1/2)
GIC Re – Strategic Approach and Way Forward (1/2) • Leverage its position of 16th rank (Globally) based on the scale it affords and excellent credit rating Leveraging its scale domestically Capitalizing International Brand • Holds strong brand equity especially in in Afro-Asian region and will lever
Slide 19: Strategic Approach and Way Forward (2/2)
GIC Re – Strategic Approach and Way Forward (2/2) Adoption of Modelling • Phased adoption of modelling capabilities to ensure better exposure management and deriving value Capabilities extraction from it Continued Focus on underwriting profitability through Focus on Underwriting ✓ Class-specific eva
Slide 20: Key Financials on Standalone Basis (1/2)
GIC Re - Key Financials on Standalone Basis (1/2) Gross Premium Net Premium INR Cr INR Cr 51,030 47,014 44,238 43,208 46,655 42,198 36,592 38,996 38,799 33,644 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Incurred Claims Ratio Profit After Tax INR Cr 6,313 97.5% 93.2% 92.4% 91.4% 2,224 2,006 89
Slide 21: Key Financials on Standalone Basis (2/2)
GIC Re - Key Financials on Standalone Basis (2/2) Net Worth Excl. FVC Net Worth Incl. FVC Policyholders’ Funds INR Cr INR Cr INR Cr 32,356 63,750 55,658 76,738 81,810 79,167 52,765 72,830 24,440 49,643 22,334 20,529 22,452 58,500 35,426 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY2
Slide 22: Stock Price Performance
GIC Re – Stock Price Performance Stock Price Performance – GIC Re vs Nity 50 200 GIC Re Nifty 180 GIC Re has outperformed Nifty 50 in last 1 year (Since Oct-2022) 160 140 120 100 80 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Above Chart is Rebased to 1
Slide 23: Experienced Board and Management
GIC Re – Experienced Board and Management Seasoned Professionals with Extensive Experience Experienced Board Dr. M P Tangirala Mr. Ramaswamy Narayan Ms. A. Manimekhalai Additional Secretary, Chairman and MD MD & CEO, Union Bank of India Department of Financial Services, Ministry of Finance Mr. T Shi
Slide 24: Global Presence
GIC Re – Global Presence GIC Re – Worldwide Presence GIC Perestrakhovanie, LLC, GIC Re Moscow, 2020 London, 2008 GIC Re Dubai,2007- GIC Re now in run-off GIC Re Malaysia, 2010 Mumbai GIC Re South Africa, 2014 Indicates GIC Re presence 23
Slide 25: Annexure
Annexure 24
Slide 26: Key Financials on Standalone Basis
GIC Re – Key Financials on Standalone Basis Particulars (INR Cr) FY19 FY20 FY21 FY22 FY23 Q1 FY23 Q1 FY24 Gross Premium 44,238 51,030 47,014 43,208 36,592 11,022 8,918 Net Premium 38,996 46,655 42,198 38,799 33,644 10,494 8,231 Earned Premium 37,679 44,145 39,866 39,293 35,808 10,736 8,633 Incurred
Slide 27: 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 28: Thank You
Thank You 27
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