New India Assurance Co. Ltd. · NSE:NIACL
New India Assurance — The New India Assurance — Investor Presentation
17 slides from New India Assurance's investor presentation
Slide 1: FY18 Investor Presentation
+) NEW INDIA ASSURANCE sep The New India Assurance Co. Ltd FY18 Investor Presentation
Slide 2: Overview
Overview Largest general insurance company in India with an established brand, expansive multi-channel distribution network and strong international presence c.100 years of #1 in India operations ~28 million policies in terms of net worth, domestic gross Incorporated in 1919 issued in FY2018 across
Slide 3: Future Strategy: Increasing Return on Equity
Future Strategy Increasing Return on Equity Maintain/Increase market Leverage technology to Improve underwriting share and leverage drive customer profitability by reducing benefits of economies of satisfaction, profitability the incurred claim ratio scale driven by growth and growth 3
Slide 4: Improve Underwriting Profitability
Improve Underwriting Profitability Optimize risk adjusted returns in Segment Specific Strategies each product segment Medical doctors employed for product design and efficient health insurance claims Minimize errors by refining management Health underwriting process and internal Co-promoted
Slide 5: Maintain/Increase Market Share
Maintain/Increase Market Share Capitalize on the low density and penetration of Indian insurance sector Focus on growth primarily driven by profitable retail business with lower emphasis on lines like corporate health Launching innovative new products Large scale recruitment/training of agen
Slide 6: Leverage Technology
Leverage Technology Target Strategy Simplify customer interfaces and processes Adopt chat bot technology to increase engagement Customers Formal root cause analysis to reduce grievances Digital marketing to garner real-time customer feedback Structured, cost-efficient and automated sales p
Slide 7: Peer Comparison – Solvency Ratio
Peer Comparison – Solvency Ratio Insurer Solvency Ratio (x) New India 2.58* National 1.53 United India 1.08 ICICI Lombard 2.21 Oriental 1.43 Bajaj Allianz 3.13 HDFC ERGO 2.05 TATA-AIG 1.78 Reliance 1.72 IFFCO Tokio 1.63 As on 31st Dec 2017 *New India Solvency Ratio as on 31st March 2018 7
Slide 8: Key Highlights of FY18 results
Key Highlights of FY18 results • Profit After Tax more than doubles to Rs 2,201 crore • Gross written premium at Rs 26,554 crore up by 15.3% • Solvency ratio as at 31st Mar 2018 at comfortable levels of 2.58x • Board recommends a bonus issue of 1 new share for every existing share held • Full year d
Slide 9: CMD's comments on results
CMD’s comments on results “The profit of the company for the year has more than doubled due to substantial improvement in the operating performance of the company. The combined ratio has dropped by 8% due to improvement in the claims ratio and expense ratio of the company. This has been the result o
Slide 10: Business Mix – Global GWP FY18
Business Mix – Global GWP FY18 Gross Written Premium Rs 26,554 cr 8% 14% 7% 3% 17% 29% 22% Fire Marine Motor OD Motor TP Health & PA Crop Others 10
Slide 11: Distribution Mix – Indian Business FY18
Distribution Mix – Indian Business FY18 Channel Mix 1.3% 27.2% 29.3% 42.2% Direct Agency Broker Bancassurance 11
Slide 12: Movement in Technical Reserves (cr)
Movement in Technical Reserves (cr) All figures in Rs cr 29,740 26,700 24,338 22,048 20,409 17,306 F13 F14 F15 F16 F17 F18 12
Slide 13: Financial Snapshot
Financial Snapshot# All figures in Rs cr GWP Investments 26,554 64,559 23,020 59,449 F17 F18 F17 F18 PAT Networth 38,300 2,201 1,008 35,642 F17 F18 F17 F18 # Results for F17 was favorably impacted by a one time effect of accounting policy change in estimation of URR by ~ Rs 530 cr 11
Slide 14: Key Ratios
Key Ratios Incurred Claim Ratio % Expense Ratio* % Commission Ratio % 91.3% 8.7% 20.3% 16.8% 7.1% 85.7% F17 F18 F17 F18 F17 F18 Combined Ratio % Adj. Combined Ratio % Solvency Ratio ROE % 118.7% 102.6% 2.58 16.1% 111.2% 94.6% 2.19 9.0% F17 F18 F17 F18 F17 F18 F17 F18 *Expenses were higher by about R
Slide 15: Segmental Information
Segmental Information GWP F18 F17 YoY % ICR % F18 F17# Fire 3,787 3,480 8.8% Fire 77% 102% Marine 685 700 -2.2% Marine 60% 76% Motor OD 4,650 4,374 6.3% Motor OD 74% 83% Motor TP 5,760 4,552 26.5% Motor TP 85% 91% Health & PA 7,666 6,489 18.1% Health & PA 103% 103% Crop 1,784 1,250 42.7% Crop 92% 10
Slide 16: Key recent developments
Key recent developments MISP guidelines effective from 1st Nov 2017 – favorable development for the industry Retail health price revision on new and renewal policies fully rolled out Continuous corrections happening in the Group Health portfolio Budget highlights Government reveals plans f
Slide 17: About Us
About Us The New India Assurance Company Ltd, founded by Sir Dorabji Tata in 1919, a Multinational General Insurance Company, today operates in 28 countries and headquartered at Mumbai, India. The Company has been market leaders in India in Non – Life business for more than 40 years. New India Assur