General Insurance Corporation Of India · NSE:GICRE
General Insurance Corporation Of India — Q2 FY2021 Earnings Presentation
26 slides from General Insurance Corporation Of India's earnings presentation, Nov 17, 2020
Slide 1: Stock exchange cover letter: Q2 FY2020-21 investor presentation
~ -- GICRe Ref. No.: GIC Re/SE/2020-21/Q2-IMP Date: November 17, 2020 To, The Manager The Manager Listing Department Listing Department BSELimited The National Stock Exchange oflndia Ltd. Phiroze Jeejeebhoy Tower Exchange Plaza, 5th Floor, Plot C/1, Dalal Street G Block, Bandra Kurla Complex Mumbai
Slide 2: Q2 FY 2021 Financial Results Presentation
Q2 FY 2021 Financial Results Presentation Mumbai, 17th November 2020
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? Transfer of Risk
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 ▪ Size of the reinsurance market in 2018 was US$255 bn and is forecast to hit US$319 CAGR 2009-19 2019 bn by the end of 2025 6.80% 9.7% 6.80% ▪ Reinsurance prices hardened for June 4.30% 4.20% 4.30% 5.8% renewals amid lower retro capacity 1.7%
Slide 9: Reinsurance industry in India
Reinsurance industry in India GIC Re is the largest Gross written premiums player in India and leads Retention ratio of of general insurance most of the domestic industry in 2018-19: industry in 2019-20: companies' treaty 59.8% ₹1,89,216 crore programmes and facultative placements Crop insurance has
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 125.6% 122.0% 119.3% 119.7% 117.0% 114.2% 117.6% 113.9% 111.6% 110.6% 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Combined Ratio (Split by Type of Insurer) 120.2% 119.3% 114.7% 116.0% 113.9% 107.0
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: Impact due to Covid-19
Impact due to Covid-19 Financial Impact on GIC Re ▪ There is no major impact that we see in life portfolio and is manageable till date ▪ Though the impact will be clear over time, GIC Re has started loading additional margin for any negative impact due to Covid-19 The Covid-19 disruption and the sub
Slide 15: Strategic Approach
Strategic Approach ▪ GIC Re to leverage its position of 12th 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 16: Financial Performance
area fee GIC Re Financial Performance URS wero fr Fars General Insurance Corporation of India
Slide 17: Financials at a glance
Financials at a glance ₹ crore Particulars Q2 FY21 Q2 FY20 H1 FY21 H1 FY20 FY20 Gross Premium 10,651.50 9,459.21 26,533.05 30,272.33 51,030.13 Profit After Tax 230.06 (595.44) (327.42) (486.86) (359.09) Incurred Claims Ratio 101.0% 108.8% 97.0% 96.6% 97.5% Combined ratio 122.10 123.46 116.13 111.31
Slide 18: Key Financials
Key Financials ₹ crore Particulars Q2 FY21 Q2 FY20 H1 FY21 H1 FY20 FY20 Gross Premium 10,651.50 9,459.21 26,533.05 30,272.33 51,030.13 Net Premium 8,846.07 8,798.70 23,471.35 28,442.76 46,655.41 Earned Premium 9,491.35 11,911.07 23,153.18 28,648.19 44,145.43 Incurred Claims 9,589.87 12,961.08 22,458
Slide 19: Break-up of Gross Premium
Break-up of Gross Premium ₹ crore Gross Premium H1 FY21 H1 FY20 Growth % A) Fire 8,303.14 6,390.44 29.9% B) Miscellaneous - Total 16,310.64 22,377.21 -27.1% Misc - Motor 4,316.40 5,016.86 -14.0% Misc - Health 3,179.24 2,955.38 7.6% Misc - Agriculture 5,999.37 11,732.73 -48.9% Misc - Other LOBs 2,815
Slide 20: Segment Wise Combined & Loss Ratio - H1 FY21
Segment Wise Combined & Loss Ratio - H1 FY21 ₹ crore Agriculture Fire Motor Health Cargo Hull Life Gross Premium Domestic 5,711.05 4,005.61 2,671.79 3,075.71 191.79 99.00 532.47 International 158.88 4,284.53 1,644.61 103.52 560.37 477.88 57.76 Total 5,869.93 8,290.14 4,316.40 3,179.23 752.16 576.88
Slide 21: Domestic Business Mix
Domestic Business Mix 73.0% 75.0% 72.0% 73.0% 27.0% 25.0% 28.0% 27.0% FY 17 FY 18 FY 19 FY 20 Obligatory Non-Obligatory • Obligatory cessions continue to remain at 5% with no monetary limits on cessions. • GIC Re Health portfolio comprises mostly of Obligatory cessions, some selective domestic treat
Slide 22: Key Financials (1/2)
Key Financials (1/2) Gross Premium ₹ crore Net Premium ₹ crore 46,655.41 51,030.13 44,238.00 37,634.46 38,995.97 41,799.37 33,585.44 30,174.56 FY 17 FY 18 FY 19 FY 20 FY 17 FY 18 FY 19 FY 20 Incurred Claims Ratio Profit After Tax ₹ crore 97.5% 3,127.67 3,233.58 86.5% 89.5% 81.0% 2,224.31 -359.09 FY
Slide 23: Key Financials (2/2)
Key Financials (2/2) Net Worth Excl. FVC ₹ crore Net Worth Incl. FVC ₹ crore Policyholders’ Funds ₹ crore 22,334 51,360.19 72,830 21,525.92 52,765.05 58,500 .42 20,529.45 47,982.94 52,821 .00 17,946.63 .31 41,681 .86 35,425.80 .87 FY 17 FY 18 FY 19 FY 20 FY 17 FY 18 FY 19 FY 20 FY 17 FY 18 FY 19 FY
Slide 24: Appendix
area fee GIC Re Appendix URS wero fr Fars General Insurance Corporation of India 23
Slide 25: 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 26: Thank You
Thank You For details please contact: Janet Binay Sarda Chief Manager Christensen Investor Relations T: + 91 22 22867597 T: + 91 22 4215 0210 E: janet@gicofindia.com E: bsarda@christensenir.com 25
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