Announcement under Regulation 30 (LODR)-Investor Presentation

Please find attached herewith Investor Presentation - Q1 FY 2023 Financial Results Presentation. The same is also available on the website of the Corporation at www.gicofindia.com.

about 1 month ago

INVESTOR PRESENTATION

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Sentiments detected

Positive 16
  • 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.

  • 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  Reinsurance rates increased moderately in 6.80% 9.7% 6.80% 4.30% 4.20% 4.30% January renewals in 2022 5.8% 1.7% 2.2% 3.2%  A.M.

  • Best has maintained its stable outlook -0.5% for the global reinsurance sector on the -2.30% back of positive rate momentum across a 8.1% 8.10% broad range of non-life classes of business 8.0% 5.8% 5.60% 

  • Net retention of general player in India and leads of general insurance insurers increased most of the domestic industry in 2021-22: from 66.33% in 2019-20 companies' treaty ₹2,20,634.73 crore to 70.82% in programmes and 2020-21 facultative placements

  • Crop insurance has Insurance penetration become the third largest increased from3.76% in line of non-life business, 2019-20 to 4.20% in after health and motor 2020-21 insurance

  • 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 capacity and 6.2% during expertise 2019-2023.

  • The cabinet has approved implementation of Ayushman Bharat Digital Health with a budget of Rs 1600 crores for 5 years which is likely to boost the healthcare sector.

  •  Following best practices such as  Rebalancing the risk portfolio Management Management conducting stress test to assess  Well-rated retrocession counterparties resilience  Continued Obligatory cessions & Order of Preference Talent  Recruitment of Experts Dominant Indian  Long term relationship with the market Management  Low attrition rate market position  Well-positioned to exploit all opportunities 12

  • Re to leverage its position of 13 th 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 and health affords an opportunity to leverage GIC Re balance sheet.

  •  Solvency pressures on Indian insurance market players could lead to higher reinsurance cessions, growing the reinsurance market size which would provide GIC Re an opportunity to sustain its market share.

  •  Phased adoption of modelling capabilities to ensure better exposure management and deriving value extraction from it.

  •  Continued focus on underwriting profitability through  Class-specific evaluation  Weeding out the contracts with inadequate pricing  Incentivisation based on individual company / contract performance  Industry Performance  Adoption of IIB rates and resultant increase in price as a factor.

  •  Leverage Lloyd’s platform to expand GIC Re presence in international markets.

  • FY22 Share (%) Growth (%) Q1

Negative 0

    Mentioned Phrases & Organizations

    Important keywords detected (20+)

    ratio (16)
    reinsurance (15)
    premium (15)
    market (14)
    insurers (11)
    risks (9)
    risk (9)
    business (8)
    management (8)
    gic (7)
    insurance (7)
    life (7)
    losses (7)
    domestic (7)
    health (7)
    combined (7)
    crore (7)
    claims (7)
    total (7)
    indian (6)

    Organizations identified (10+)

    GIC Re (2)
    GlobalData (2)
    Thomson Reuters (1)
    Allianz Research (1)
    Valuates Report (1)
    general Reinsurance GIC (1)
    IRDAI (1)
    GIC (1)
    Incentivisation (1)
    GIC Re Health (1)

    Tables extracted (2)

    Particulars Q1 FY23 Q4 FY22 Q1 FY22FY22
    Gross Premium 11,021.83 10,303.81 14,289.9243,208.46
    Net Premium 10,493.68 9,080.52 12,935.2238,799.03
    Earned Premium 10,736.16 8,621.98 11,354.4139,293.40
    Incurred Claims 10,168.91 4,334.31 11,837.4036,625.85
    Incurred claims ratio (on earned premium) 94.7% 50.3% 104.3%93.2%
    Net Commission 1,655.56 2,003.48 2,409.296,950.82
    Net Commission Percentage (on Net Premium) 15.8% 22.1% 18.6%17.9%
    Expenses of Management 49.80 178.41 62.40371.28
    Expenses of Management ratio (on net premium) 0.5% 2.0% 0.5%1.0%
    Profit/(Loss) on Exchange 350.83 210.51 154.58401.41
    Underwriting Profit/(Loss) (776.29) 2,314.19 (2,811.17)(4,266.11)
    Investment Income 1,890.43 2,826.59 1,794.609,562.29
    Other Income less Outgo (125.43) (1,526.01) (150.15)(1,736.03)
    Profit Before Tax 988.71 3,614.78 (1,166.72)3,560.14
    Provision for Taxation 298.99 1,819.37 (394.99)1,554.40
    Profit After Tax 689.72 1,795.40 (771.73)2,005.74
    Combined Ratio % 110.97% 74.30% 123.36%112.08%
    Ceding Company (Cedant)The company that transfers its risk to a reinsurer
    Combined RatioThe sum of the loss ratio and the expense ratio
    Earned PremiumsThe portion of the premium for which protection has been provided
    Excess of Loss ReinsuranceA form of reinsurance, which, subject to a specified limit, indemnifies the ceding company for the amount of loss in excess of a specified retention
    Expense RatioSum of acquisition costs and other operating expenses, in relation to premiums earned
    Facultative ReinsuranceReinsurance of individual risks by offer and acceptance wherein the reinsurer retains the ability to accept or reject and individually price each risk offered by the ceding company
    Incurred but not reported losses (IBNR)An actuarial estimate of amounts required to pay ultimate net losses that refers to losses that have occurred but have not yet been fully and finally settled/paid
    Loss RatioRatio of total losses incurred (paid and reserved) in claims plus adjustment expenses divided by the total premiums earned
    Obligatory TreatyA reinsurance contract under which the subject business must be ceded by the insurer in accordance with contract terms and must be accepted by the reinsurer
    RetrocessionA transaction in which a reinsurer transfers risks it has reinsured to another reinsurer
    Treaty ReinsuranceThe ceding company transfers all risks within a book of business to the reinsurer

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