General Insurance Corporation Of India · NSE:GICRE
General Insurance Corporation Of India — Q1 FY2022 Earnings Presentation
26 slides from General Insurance Corporation Of India's earnings presentation, Aug 14, 2021
Slide 1: Cover letter to stock exchanges
�� GICRe Ref. No.: GIC Re/SE/2021-22/Ql-IMP Date: August 14, 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- 4
Slide 2: Q1 FY 2022 Financial Results Presentation
Q1 FY 2022 Financial Results Presentation Mumbai, August 2021 \.il~cflll ffllITT1JT ifti:n' Ai1i:r General Insurance Corporation of India ~~ GICRe
Slide 3: Safe Harbour
Safe Harbour ~ -- GICRe 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",
Slide 4: Agenda
Agenda ~ -- GICRe 01 Market Review 02 Strategic Overview 03 Financial Performance 3
Slide 5: Market Review
~~ GICRe Market Review \.il~cflll ffllITT1JT ifti:n' Ai1i:r General Insurance Corporation of India 4
Slide 6: How Reinsurance Works?
How Reinsurance Works? ~ -- GICRe 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 D
Slide 7: Reinsurance Industry - Role
Reinsurance Industry - Role ~ -- GICRe 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
Slide 8: Global Scenario
Global Scenario ~ -- GICRe 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 r
Slide 9: Reinsurance industry in India
Reinsurance industry in India ~ -- GICRe 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
Slide 10: Domestic Operating Environment
Domestic Operating Environment ~ -- GICRe 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 (CA
Slide 11: Combined Ratio – Indian non-life insurance
Combined Ratio – Indian non-life insurance ~ -- GICRe 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%
Slide 12: Strategic Overview
~~ GICRe Strategic Overview \.il~cflll ffllITT1JT ifti:n' Ai1i:r General Insurance Corporation of India 11
Slide 13: Competitive Strategy Pillars
Competitive Strategy Pillars ~ -- GICRe ▪ 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 ▪ Effect
Slide 14: Impact due to Covid-19
Impact due to Covid-19 ~- GICRe 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 an
Slide 15: Strategic Approach
Strategic Approach ~ -- GICRe ▪ 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 a
Slide 16: Financial Performance
~~ GICRe Financial Performance \.il~cflll ffllITT1JT ifti:n' Ai1i:r General Insurance Corporation of India 15
Slide 17: Financials at a glance
Financials at a glance ~ -- GICRe ₹ crore Particulars Q1 FY22 Q1 FY21 FY21 Gross Premium 14,289.92 15,881.55 47,014.38 Profit After Tax (771.73) (557.47) 1,920.44 Incurred Claims Ratio 104.3% 94.2% 92.4% Combined ratio 123.4% 112.2% 112.0% Solvency Ratio (times) 1.74 1.52 1.74 16
Slide 18: Key Financials
Key Financials ~ -- GICRe ₹ crore Particulars Q1 FY22 Q4 FY21 Q1FY21 FY21 Gross Premium 14,289.92 8,812.83 15,881.55 47,014.38 Net Premium 12,935.22 8,240.83 14,625.28 42,197.50 Earned Premium 11,354.41 7,573.55 13,661.83 39,865.89 Incurred Claims 11,837.40 6,202.19 12,868.74 36,853.75 Incurred clai
Slide 19: Break-up of Gross Premium
Break-up of Gross Premium ~ -- GICRe ₹ crore Gross Premium Q1FY22 Q1FY21 Growth % A) Fire 3,954.04 3,925.92 0.72% B) Miscellaneous - Total 9,489.40 11,144.83 -14.85% Misc - Motor 2,406.71 1,726.24 39.42% Misc - Health 646.18 843.47 -23.39% Misc - Agriculture 5,312.63 6,983.24 -23.92% Misc - Other LO
Slide 20: Segment Wise Combined & Loss Ratio – Q1FY22
Segment Wise Combined & Loss Ratio – Q1FY22 ~- GICRe ₹ crore Agriculture Fire Motor Health Cargo Hull Life Gross Premium Domestic 5,275.18 2,177.04 1,032.90 635.96 126.56 75.84 388.06 International 37.45 1,777.01 1,373.81 10.22 154.96 71.56 29.49 Total 5,312.63 3,954.04 2,406.71 646.18 281.52 147.40
Slide 21: Domestic Business Mix
Domestic Business Mix ~ -- GICRe 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 d
Slide 22: Key Financials (1/2)
Key Financials (1/2) ~ -- GICRe 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 3,23
Slide 23: Key Financials (2/2)
Key Financials (2/2) ~ -- GICRe 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
Slide 24: Appendix
~~ GICRe Appendix \.il~cflll ffllITT1JT ifti:n' Ai1i:r General Insurance Corporation of India 23
Slide 25: Glossary
Glossary ~ -- GICRe 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,
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
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