Reliance General Insurance Shares Annual Reports

Reliance General Insurance Shares

Reliance General Insurance Company Limited's 23rd Annual Report (2022-23) highlights a year marked by growth and excellence, navigating a complex economic landscape. The company achieved a Gross Written Premium (GWP) of ₹10,489 Cr in FY22-23, a nearly 10% increase from the ₹9,505 Cr in FY21-22, and crossed the ₹10 thousand crore gross premium milestone. The non-life insurance industry reported a 16% growth in premiums. RGICL's financial performance shows a Profit Before Tax (PBT) growth of 9% to ₹415 crores, and Investment AUM grew by 17% to ₹16,935 Crores, with investment yields remaining healthy at 6%. The combined ratio stood at 110% for the year. Digital transformation investments have helped cross ₹10,339 crores in Gross Written Premium for FY 2022-23, which accounted for 4.8% of the market share amongst General Insurance players with a 10% year-on-year growth. The company focuses on digitization, innovation, and customer-centricity. The company is committed to delivering innovative, customer-centric insurance solutions, with a focus on customer satisfaction, and invests in technology and digital capabilities. It prioritized implementing digital solutions, Artificial Intelligence, and increasing data automation to streamline processes and offer personalized solutions. The Corporate Business Group grew 17% in FY2022-23, and government business grew slowly at 3%. Reliance General Insurance maintained 2nd largest position in the Rural Retail space with a market share of 23% in FY2022-23. The company maintained a claim settlement ratio of 98.75% of claims settled in less than 3 months in FY2021-22. The asset allocation mix between the Debt and Equity was 96.41% and 3.59% respectively, as at March 31, 2023. IRDAI introduced various reforms seeking to increase the penetration of insurance products and has implemented the 'Use and File' framework and new regulations regarding the 'Expenses of Management' (EOM). The company forecasts industry premiums to rise significantly in the next 15 years, driven by increased per capita income growth and heightened risk awareness. The Board of Directors recommends a dividend @ 0.1% i.e.,1p. (One Paise Only) per equity share of ₹10 each fully paid-up of the Company for the year ended March 31, 2023. During the year, the Company allotted 2,62,547 equity shares of ₹10 each pursuant to exercise of stock options under "Reliance General Insurance Company Limited Employee Stock Option Scheme" ("ESOP Scheme"). The NCDs are rated by CARE Rating Limited and Brickwork Ratings India Private Limited and are presently assigned the rating of CARE A & BWR A+ as on March 31, 2023. The report also details the composition of the Board of Directors and its various committees, including the Audit Committee, Investment Committee, Policyholders' Protection Committee, Risk Management Committee, Nomination and Remuneration Committee, and Corporate Social Responsibility Committee. The company complied with applicable Secretarial Standards issued by the Institute of Company Secretaries of India. The Statutory Auditor's Report contains a modified opinion related to investments in Reliance Capital Limited (RCL). The company has implemented Enterprise Risk Management (ERM) framework, and completed the surveillance audit for compliance as per the requirements of ISO 27001:2013 Information Security Management System (ISMS). There were five sexual harassment complaints received during the financial year ended March 31, 2023. Out of the total, four were investigated by ICC and disposed-off with suitable actions taken and for one case, an investigation is in progress. The investment portfolio of the Company as on March 31, 2023 stood at ₹16,935 crore.

Reliance General Insurance Shares

Financial year 2021-22 was a year of recovery for the non-life insurance industry after the COVID-19 pandemic. The non-life insurance industry reported an 11 per cent growth in premiums to Rs 2.20 lakh crores in FY22 as compared to FY21 (Rs. 1.98 lakh crores). In FY22, the health portfolio became the largest segment in the industry for the first time. Non-life insurance penetration in India is low, with premium as a % of GDPI at 1.0%, lower than the world average of 4.1%. Reliance General Insurance proactively invested in digitization, innovation, and customer-centricity. The company crossed Rs. 9,505 crores in Gross written Premium for FY2021-22, accounting for 5.1% of market share among General Insurance players and a 13% year-on-year growth. The combined ratio stood at 108%, improving from 113% a year ago. PBT grew by 18% to Rs. 381 crores. Investment yields remained healthy at 7.7% with 96% of fixed income portfolio comprised of bond investments rated AA+ securities. Investment AUM grew by 11.3% to Rs. 14,506 Crores during FY2021-22. Retail business registered healthy growth at 11%, where the motor segment contributes significantly at 79% of retail sector. The Corporate Business Group and Government Business grew at 11% and 17% respectively in FY21-22. Reliance General Insurance implemented Machine learning (MI), Artificial Intelligence (Al) to improve client servicing efficiency and Optical Character Recognition (OCR) and video streaming to process claims faster. Directors' Report The operations resulted in Profit After Tax of Rs. 242.28 crore as compared to Rs. 208.12 crore for the previous year. The Board of Directors recommended a dividend @ 0.1% i.e. 1 Paise per equity share. The Company underwrote Gross Written Premium of Rs. 9,504.86 crore as against Rs. 8,405.40 crore in FY2020-21 registering a growth of 13%. The Profit Before Tax earned during FY2021-22 is Rs. 380.83 crore as against Rs. 322.54 crore during the previous year achieving a growth of 18% over FY2020-21. During the year, the Company allotted 2,55,450 equity shares of Rs. 10 each pursuant to exercise of stock options under "Reliance General Insurance Company Limited Employee Stock Option Scheme". The paid-up equity share capital increased to Rs. 251.81 crore. Outstanding Non-Convertible Debentures stood at Rs. 230 crore consisting of 2,300 NCDs. The investment portfolio stood at Rs. 14,525 crore as compared to Rs. 13,096 crore as on March 31, 2021. The asset allocation mix between the Debt and Equity was 96.48% and 3.52% respectively. The Board of Directors held 6 meetings during the Financial Year ended March 31, 2022. The Nomination and Remuneration Committee ("NRC") has devised a policy for selection and appointment of Directors, Key Managerial Personnel and Senior Management Employees and their remuneration. Mr. Anil Ambani, Mr. Rahul Sarin, and Mr. Prem Kumar Malhotra resigned as directors during the year. Mr. Sushil Sojitra was appointed as the Company Secretary & Chief Compliance Officer of the Company w.e.f. January 25, 2022. The Company has formulated a Whistle Blower Policy/ Vigil Mechanism to address the genuine concerns of the directors and employees. There was one sexual harassment complaint received during Financial Year ended March 31, 2022 which was investigated by ICC and disposed-off with suitable actions taken. The Company was recognized by "Asia's Best Emerging Insurance Companies Awards" for the category "Best Insurance Company of the year 2020". The Company has identified enterprise-wide risks which are categorized under five broad categories viz. Credit risk, Market risk, Business risk (Insurance risk), Operational risk (including Cyber Risk) and Compliance risk. The CSR Committee presently consists of Dr. Thomas Mathew, Mrs. Chhaya Virani and Mr. Rakesh Jain as members. In 2020-21, Reliance General Insurance spent Rs. 5,58,27,000 for CSR activities. Some projects it supported were Procurement of Projector Accessories for Isha Vidya rural schools, serving nutritious breakfast to the underprivileged by The Yoga Institute, and providing medical aids & financial assistance by Anvi Medical and Educational Foundation. The composition of the Board of Directors includes Mr. Rajendra Chitale, Dr. Thomas Mathew, Mrs. Chhaya Virani, and Mr. Rakesh Jain. Company committees include the Audit Committee, Investment Committee, Policyholders' Protection Committee, Risk Management Committee, Nomination and Remuneration Committee and Corporate Social Responsibility Committee. The reinsurance program has an optimum mix of Proportional Treaties and Non-Proportional Treaties to protect the Company's net retentions. On the infrastructure front, the Company has migrated its IDC Datacenter to Yotta which provides improved stability, manpower cost saver and security benefits. The Automobile industry is also undergoing a massive disruption with the introduction of Elective vehicles. The Company has increased its reach by tying-up with multiple EV players. The Company has recently partnered with SHL, a talent global firm that provides deep people insights to predict and drive performance. The Company is committed to create a lively and high-spirited culture which gives a sense of inclusion to the employees and conducts quarterly CEO webcasts. With consistent, targeted, and interactive communications, RGI Family on LinkedIn is now 66000+ followers, strengthening the #BrandRGI. Customer experience is improved via E-Claim form, video based spot streaming, and a supply chain process implemented to minimize financial burden on the insured. Especially during the second wave, the Company's health claims team encountered several obstacles and processed 100% claims digitally. To reduce the customer's anxiety and improve operational efficiency of cashless claims by skip level processing the company notes maximum utilization of its provider portal with hospitals. Independent Auditors' Report The auditors issue a qualified opinion due to the valuation of certain investments being done at amortized cost, and the impact on the potential diminution in the value of the investment is presently not ascertainable. The auditors also reported a material weakness in the company's operation of financial controls over valuation of investment. The financial statements are for the year ended 31st March 2022. The schedules included detail expenses, revenues and accounts for fire insurance, marine insurance and miscellaneous businesses.