Reliance General Insurance Shares

Annual Report Summary

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.