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Care Health (Previously Religare Health) Insurance Company Limited Unlisted Shares

Annual Report: 2022

Year: 2022

Annual Report Summary

Care Health Insurance Limited Annual Report 2021-22 Summary:

Overview: Care Health Insurance Limited (CHI), formerly known as Religare Health Insurance Company Limited, is celebrating its 10th year of operations. The company focuses on technological evolution, customer satisfaction, quality service, and capital adequacy. CHI offers over 30 products across group, travel, fixed benefit, and indemnity categories.

Financial Performance (FY22):

  • Gross Written Premium: Rs 3,947 cr (53% growth).
  • Post-Tax Profit: Rs 11.5 crore.
  • Solvency Ratio: 1.85.
  • Combined Ratio: 103%.
  • Net Worth: Rs. 1,207.37 Crores.
  • Investments: Total Assets under management as on 31st March, 2022 stands at Rs. 3,566.54 Crores.

Operational Highlights:

  • The health insurance sector grew 26%, with a market size exceeding Rs. 80,000 cr.
  • CHI is the second-largest standalone health insurer in India.
  • Network of over 18,900 healthcare providers across 1,385+ locations.
  • Distribution network expanded to 207 branches.
  • Settled over 30 lakh claims.
  • Launched new products including Care Advantage, Arogya Sanjeevani, Corona Kavach, Covid Care, Group Care 360, Care Shield Add-on, and Explore V2.
  • Opened 50 new branches in the last year.
  • Increased permanent employees to around 14311.
  • Increased agent strength from 1,69,183 to 1,97,806.
  • Transferred Rs. 29.80 crores to Securities Premium against the exercise of shares.

Products: The company offers a range of health insurance products, including:

  • Retail Health Indemnity Products: Care, Care Advantage, Care Freedom, Care Heart, Super Mediclaim, Care Plus, Care Classic, and Joy.
  • Group Health Products: Group Care, Group Care 360°, Group Global Care, and Grameen Care.
  • Travel Products: Explore and Student Explore.
  • Fixed Benefit Products: Secure, Assure, and Group Secure.
  • Saral Suraksha Bima

Investments and Reserves:

  • Investment portfolio bifurcated into Shareholders portfolio of Rs. 1,106.21 Crores and Policyholders portfolio of Rs. 2,460.33 Crores.
  • Return generated in Shareholder portfolio was 6.1% and in Policyholder portfolio return was 6.7%.
  • Overall 31.52 % of the portfolio has been invested in Sovereign securities.
  • 99.57% of the portfolio is rated AAA and A1+.
  • Company has created a reserve for employee stock option expenses amounting to Rs. 3.85 Crores.

Corporate Social Responsibility:

  • The company invested in two education-centric projects: a primary school in Nandgaon, Mathura, and Prem Mahavidyalaya, Mathura.
  • Spent approximately Rs. 0.49 crore (including GST) towards renovation, upgradation and maintenance of a primary school in Nandgaon, Dist. Mathura, Uttar Pradesh.
  • Modified existing plan to spend Rs. 0.83 crore (including GST) toward renovation, upgradation and maintenance of Prem Mahavidyalaya, Mathura, Uttar Pradesh.

Governance and Compliance:

  • Board consists of 11 directors, including a Managing Director & CEO, Non-Executive Directors, a Nominee Director, and Non-Executive Independent Directors.
  • Board Committees: Audit Committee, Investment Committee, Risk Management Committee, Policyholder's Protection Committee, Nomination & Remuneration Committee, Corporate Social Responsibility Committee, Allotment Committee, Initial Public Offering Committee, and Stakeholders Relationship Committee.
  • The company complied with IRDAI regulations on Rural and Social Sector obligations.
  • The company has complied with the revised Secretarial Standards issued by ICSI.
  • The company has also formulated a whistle blower policy and a policy on prevention of sexual harassment at the workplace.
  • The internal control system of the Company is adequate and in place.
  • The company is preparing for an IPO, selecting underwriters and counsel, and preparing a registration statement.

Future Outlook: The awareness of health insurance has increased due to the COVID-19 pandemic. The company plans to increase its distribution footprint through agencies, banks, brokers, and digital channels, intensified by efficient technology application.

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