Makes future plans with a focus in new Digital Alliances, Retail health distribution, MSME and new product development
Bengaluru, 24th February 2023: Reliance General Insurance Co. Ltd., India’s 5th largest Private General Insurance Company, has been registering consistent profitable growth and healthy solvency for the past eight consecutive years. For the nine months ended on 31st December 2022, the Company has posted Gross Written Premium of Rs. 8,208 Crore, up by Rs. 914 Crore from the corresponding period previous year.
Key performance highlights for nine months ended December 31, 2022 are:
1. The Company has grown Gross Written Premium @ 13% on Y-o-Y basis to Rs. 8,208 Crore for 9M FY23 as against Rs. 7,294 Crore for corresponding period 9M FY22.
2. Profit Before Tax has grown to Rs. 334 Crore for 9M FY23 as against Rs 314 Crore for corresponding period 9M FY22. The Company took a hit of Rs 41.7 Crore for unutilized MAT credit in current year to opt for lower tax regime. This will accrue significant bottom line benefits in the subsequent periods.
3. Company has grown its Investments Assets at 20% to Rs. 16,581 Crore for 9M FY23 as against Rs. 13,861 Crore for corresponding period 9M FY22. The company is operating at 6.6 times the Investment AUM / Net Worth Ratio, which is one of the best in the industry and shows a strong cash accrual.
4. For the past many years, the Company is reinvesting the Annual bottom-line in growing the business and maintaining solvency over the Regulatory limits. The latest solvency position as on 31st December 2022 stands at 1.59 times indicating sufficient buffer over its Policyholder liabilities There is no challenge to the company to grow at the past growth rates due to strong internal accruals and existing capital.
Additionally, the Company ranks best amongst large players in the industry in terms of its faster claims settlement. According to the IRDAI’s Annual Report, for the year 2021-22, the company has settled over 23 lakh claims of which 98.65% claims were settled in less than 3 months’ time.
The company is investing heavily in new Digital Alliances, Retail health distribution, MSME business and new product development to tap emerging growth opportunities in the sector.
Considering the fact, that the insurance penetration level in our country is very low as compared to other parts of the world and the big-ticket reforms recently initiated on the Regulatory side facilitating ease of doing business in the insurance sector, and ensuring the regulatory architecture is aligned with the market dynamics to improve penetration, there is an augmented opportunity for much faster growth over the past. Few reforms are already in place, and few are in pipeline.
The impact of these reforms will bring significant growth opportunities for the sector. As a large format insurer, Reliance General Insurance can gain significantly in the current ecosystem and hence in anticipation of much higher growth rate over and above its normal growth of about 15% per annum in last 3 years (which is better than the General Insurance Industry growth rate), the company has raised a request for fresh capital infusion to its parent company, Reliance Capital Ltd.
Reliance General Insurance also has a robust network of more than 75,000 intermediaries and 131 branch offices manned by over 7000 people across India for offering its products and services to Retail, Corporate, Government and SME clients.
The Company strongly believes that it is in the best position to offer its customers innovative and complete Insurance Solutions in Resurgent India.