General Insurance Corporation Of India · NSE:GICRE
General Insurance Corporation Of India — FY2021 Earnings Presentation
26 slides from General Insurance Corporation Of India's earnings presentation, Jun 30, 2021
Slide 1: Exchange filing cover letter
�� GICRe Ref. No.: GIC Re/SE/2020-21/Q4-IMP Date: June 30, 2021 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 - 40
Slide 2: Q4 & Full Year FY 2021 Financial Results Presentation
Q4 & Full Year FY 2021 Financial Results Presentation Mumbai, June 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
GIC Re Market Review uRda aero star fra 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 Size of the reinsurance market in 2020 was US$282 bn and is forecast to hit US$355 CAGR 2009-19 2019 bn by the end of 2027 6.80% 9.7% 6.80% Reinsurance rates increased moderately in 4.30% 4.20% 4.30% 5.8% January and April renewals in 2021
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 reduced of general insurance most of the domestic from 68.11% in 2018-19 industry in 2020-21: companies' treaty to 66.33% in ₹1,98,734.68 crore programmes and 2019-2
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 122.6% 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 2019-20 Combined Ratio (Split by Type of Insurer) 122.6% 120.2% 122.2% 119.
Slide 12: Strategic Overview
GIC Re Strategic Overview uRda aero star fra 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
GIC Re Financial Performance uRda aero star fra General Insurance Corporation of India
Slide 17: Financials at a glance
Financials at a glance ₹ crore Particulars Q4 FY21 Q4 FY20 FY21 FY20 Gross Premium 8,812.83 9,217.84 47,014.38 51,030.13 Profit After Tax 1,260.44 1,197.40 1,920.44 (359.09) Incurred Claims Ratio 81.9% 89.8% 92.4% 97.5% Combined ratio 103.9% 107.6% 112.0% 114.4% Solvency Ratio (times) 1.74 1.53 1.74
Slide 18: Key Financials
Key Financials ₹ crore Particulars Q4 FY21 Q4 FY20 FY21 FY20 Gross Premium 8,812.83 9,217.84 47,014.38 51,030.13 Net Premium 8,240.83 8,439.89 42,197.50 46,655.41 Earned Premium 7,573.55 7,668.77 39,865.89 44,145.43 Incurred Claims 6,202.19 6,887.42 36,853.75 43,035.86 Incurred claims ratio (on earn
Slide 19: Break-up of Gross Premium
Break-up of Gross Premium ₹ crore Gross Premium FY21 FY20 Growth % A) Fire 14,123.41 12,026.97 17.4% B) Miscellaneous - Total 29,106.18 35,938.30 -19.0% Misc - Motor 8,846.90 9,440.01 -6.3% Misc - Health 5,606.01 5,588.50 0.3% Misc - Agriculture 9,198.63 15,470.07 -40.5% Misc - Other LOBs 5,454.64 5
Slide 20: Segment Wise Combined & Loss Ratio – FY21
Segment Wise Combined & Loss Ratio – FY21 ₹ crore Agriculture Fire Motor Health Cargo Hull Life Gross Premium Domestic 8,427.64 6,501.37 5,384.87 5,397.98 342.51 214.27 1,119.34 International 770.99 7,622.04 3,462.03 208.03 1,115.10 858.70 134.88 Total 9,198.63 14,123.41 8,846.90 5,606.01 1,457.61 1
Slide 21: Domestic Business Mix
Domestic Business Mix 73% 75% 72% 73% 70% 27% 25% 28% 27% 30% FY 17 FY 18 FY 19 FY 20 FY 21 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 treatie
Slide 22: 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 37,634.46 38,995.97 41,799.37 44,238.00 33,585.44 30,174.56 FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21 Incurred Claims Ratio Profit After Tax ₹ crore 97.5% 3,127.67 3,233.58 89.5%
Slide 23: Key Financials (2/2)
Key Financials (2/2) Net Worth Excl. FVC ₹ crore Net Worth Incl. FVC ₹ crore Policyholders’ Funds ₹ crore 22,334.42 22,452.34 51,360.19 21,525.92 52,765.05 49,643.19 76,737.88 20,529.45 47,982.94 17,946.63 72,829.68 35,425.87 52,821.86 58,500.31 41,681.87 FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY
Slide 24: Appendix
GIC Re Appendix uRda aero star fra 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 Advisory T: + 91 22 22867231 T: + 91 22 4215 0210 E: janet@gicofindia.com E: bsarda@christensenir.com 25
General Insurance Corporation of India — FY2021 Earnings Presentation on 6ix