General Insurance Corporation Of India · NSE:GICRE
General Insurance Corporation Of India — Q4 FY2022 Earnings Presentation
25 slides from General Insurance Corporation Of India's earnings presentation, May 30, 2022
Slide 1: Exchange filing cover letter for investor presentation
�� GICRe Ref. No.: GIC Re/SE/2021-22/Q4-IMP Date: May 30, 2022 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 - 400
Slide 2: Q4 FY 2022 Financial Results Presentation
Q4 FY 2022 Financial Results Presentation Mumbai, May 2022
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
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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 The global reinsurance market size is expected to grow from $503.73 billion in CAGR 2009-19 2019 2021 to $812.37 billion in 2026 6.80% 9.7% 6.80% Reinsurance rates increased moderately in 4.30% 4.20% 4.30% 5.8% January renewals in 2022 1.7
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 increased of general insurance most of the domestic from 66.33% in 2019-20 industry in 2021-22: companies' treaty to 70.82% in ₹2,20,634.73 crore programmes and 2020
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% 116.0% 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 2020-21 Combined Ratio (Split by Type of Insurer) 122.2% 118
Slide 12: Strategic Overview
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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: Strategic Approach
Strategic Approach GIC Re to leverage its position of 13th 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 15: Financial Performance
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Slide 16: Financials at a glance
Financials at a glance ₹ crore Particulars Q4 FY22 Q4 FY21 FY22 Gross Premium 10,303.81 8,812.83 43,208.46 Profit After Tax 1,795.40 1,260.44 2,005.74 Incurred Claims Ratio 50.3% 81.9% 93.2% Combined ratio 74.30% 103.47% 112.08% Solvency Ratio (times) 1.96 1.74 1.96 15
Slide 17: Key Financials
Key Financials ₹ crore Particulars Q4 FY22 Q3 FY22 Q4 FY21 FY22 Gross Premium 10,303.81 10,240.00 8,812.83 43,208.46 Net Premium 9,080.52 9,332.56 8,240.83 38,799.03 Earned Premium 8,621.98 8,907.00 7,573.55 39,293.40 Incurred Claims 4,334.31 10,857.83 6,202.19 36,625.85 Incurred claims ratio (on ea
Slide 18: Break-up of Gross Premium
Break-up of Gross Premium ₹ crore Gross Premium FY22 FY21 Growth % A) Fire 12,949.11 14,123.41 -8.3% B) Miscellaneous - Total 26,907.72 29,106.18 -7.6% Misc - Motor 9,742.28 8,846.90 10.1% Misc - Health 4,517.81 5,606.01 -19.4% Misc - Agriculture 7,911.47 9,198.63 -14.0% Misc - Other LOBs 4,736.17 5
Slide 19: Segment Wise Combined & Loss Ratio – FY22
Segment Wise Combined & Loss Ratio – FY22 ₹ crore Fire Motor Health Agri Cargo Hull Life Gross Premium Domestic 6,406.41 4,622.26 4,487.49 7,691.41 423.88 224.81 1,313.08 International 6,542.70 5,120.02 30.32 220.07 820.15 432.03 137.69 Total 12,949.11 9,742.28 4,517.81 7,911.47 1,244.02 656.84 1,45
Slide 20: Domestic Business Mix
Domestic Business Mix 60% 73% 75% 72% 73% 70% 40% 27% 25% 28% 27% 30% FY 17 FY 18 FY 19 FY 20 FY 21 FY22 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 dom
Slide 21: 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 38,799.03 41,799.37 44,238.00 43,208.46 FY 18 FY 19 FY 20 FY 21 FY 21 FY 18 FY 19 FY 20 FY 21 FY 22 Incurred Claims Ratio Profit After Tax ₹ crore 97.5% 3,233.58 92.4% 93.2% 2,2
Slide 22: Key Financials (2/2)
Key Financials (2/2) Net Worth Excl. FVC ₹ crore Net Worth Incl. FVC ₹ crore Policyholders’ Funds ₹ crore 24,439.72 52,765.05 55,657.73 76,737.88 51,360.19 49,643.19 81,810.00 72,829.68 22,334.42 22,452.34 58,500.31 35,425.87 52,821.86 21,525.92 20,529.45 FY 18 FY 19 FY 20 FY 21 FY 22 FY 18 FY 19 FY
Slide 23: Appendix
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Slide 24: 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 25: Thank You
Thank You For details please contact: Jayashri Prabhu Binay Sarda Assistant General Manager Christensen Advisory P: +91 22 2286 7204 T: + 91 22 4215 0210 E: jayashreep@gicofindia.com E: bsarda@christensenir.com 24
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