INDIAN GENERAL INSURANCE

INDUSTRY REPORT

ICRA expects business growth to

resume cautiously in FY2022,
while underwriting losses set to
rise (due to higher claims ratios)

JUNE 2021

Karthik Srinivasan Sahil Udani

+91 22 6114 3444 +91 22 6114 3429
karthiks@icraindia.com Sahil.udani@craindia.com

Niraj Jalan
+91 33 7150 1146
Niraj.jalan@icraindia.com
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 Combined ratio improved driven by lower claims ratio; however, underwriting losses
Table of Contents continued ....................................................................................................................... 26
Loss ratio improved mainly driven by motor segment with lower claims given
pandemic-induced lockdown......................................................................................... 27
EXECUTIVE SUMMARY .................................................................................... 4 Net profitability largely supported by investment income............................................ 28
Summary ........................................................................................................ 5 G-secs dominate the investments; however, equity mix constitutes higher share for
PSU insurers, thereby exposing it to volatility in equity markets .................................. 29
GI Industry Outlook......................................................................................... 6
Select private players solvency ratio remains comfortable; while PSUs solvency largely
OUTLOOK/CREDIT OUTLOOK : STABLE ............................................................................ 7 supported by GoI’s capital infusion ............................................................................... 30
General insurance industry outlook ................................................................................ 8 Diversified distribution channels with share of bancassurance and alternate channels
ICRA’s rated universe .................................................................................... 10 to improve gradually in the medium term .................................................................... 32
Comfortable liquidity profile ......................................................................................... 33
ICRA’s rated universe ..................................................................................................... 11
Investment largely regulated with stressed investment exposure remains low ........... 34
Industry Performance Analysis and Outlook .................................................. 12
COMPANY FINANCIALS ..................................................................................35
Growth rate marginally improves in H2 FY2021; share of private players increases .... 13
Private players continue to chart stronger growth trajectory aided by health and fire
insurance ....................................................................................................................... 14
Health and fire insurance segments fuel growth in FY2021, and FY2020 ..................... 15
Health segment shows a resilient growth in FY2021 for both PSU and private players 16
Motor segment growth had slowed in FY2020, and FY2021 for both PSUs and private
players ........................................................................................................................... 17
Fire segment loss ratios decline for both, as GIC RE increases premium rates ............. 18
Crop Segment sees a decline due to change in regulations .......................................... 19
Re-insurance premium sees a steady increase with GIC’s reliance reducing ................ 20
Marginal improvements continue in penetration and density; Metrics well below levels
reported by advanced economies ................................................................................. 21
Claims settlement improvement across PSUs and select private players ..................... 22
Claims settlement improvement across PSUs and select private players ..................... 23
Important regulatory/industry announcements ........................................................... 24
FINANCIAL PERFORMANCE & ANALYSIS ......................................................... 25

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 EXHIBIT 31: Net Premium Written / Reported Net Worth ................................................ 30
Table of Exhibits EXHIBIT 32: Channel-wise GDPI - select private insurers ................................................... 32
EXHIBIT 33: Channel-wise GDPI - PSUs .............................................................................. 32
EXHIBIT 34: Liquidity and liquidity buffer - select private insurers .................................... 33
EXHIBIT 1: Trends in Gross Domestic Premium (GDPI) ...................................................... 13 EXHIBIT 35: Liquidity and liquidity buffer - PSU insurers ................................................... 33
EXHIBIT 2: GDPI share between Private and PSU players .................................................. 13 EXHIBIT 36: Major D rated investment exposure of the general insurance industry ........ 34
EXHIBIT 3: GDPI trend for Public Sector Entities (PSU) ...................................................... 14
EXHIBIT 4: GDPI trend private sector players .................................................................... 14
EXHIBIT 5: GDPI trend by segment for Public Sector Entities (PSU) .................................. 15
EXHIBIT 6: GDPI trend by segment private sector players ................................................ 15
EXHIBIT 7: GDPI trend for Health & PA segment ............................................................... 16
EXHIBIT 8: Net loss ratio trends for the health & PA segment .......................................... 16
EXHIBIT 9: GDPI trend for Motor Segment ........................................................................ 17
EXHIBIT 10: Net loss ratio trends for the Motor segment ................................................. 17
EXHIBIT 11: GDPI trend for Fire Segment .......................................................................... 18
EXHIBIT 12: Net loss ratio trends for the Fire segment ..................................................... 18
EXHIBIT 13: GDPI trend for Crop Segment ......................................................................... 19
EXHIBIT 14: Net loss ratio trends for the Crop segment .................................................... 19
EXHIBIT 15: Reinsurance trend .......................................................................................... 20
EXHIBIT 16: General Insurance density and penetration ................................................... 21
EXHIBIT 17: Gross Financial savings (as % of gross domestic product) .............................. 21
EXHIBIT 18: Ageing of claims for PSU players .................................................................... 22
EXHIBIT 19: Ageing of claims of Select Private players ...................................................... 22
EXHIBIT 20: Claims settlement ratio .................................................................................. 23
EXHIBIT 21: Claims settlement metrics .............................................................................. 23
EXHIBIT 22: Combined Ratios - PSU ................................................................................... 26
EXHIBIT 23: Combined Ratios - Select Private Players ....................................................... 26
EXHIBIT 24: Net loss ratio by segment - 9M FY2021 .......................................................... 27
EXHIBIT 25: Net loss ratio by segment - 9M FY2020 .......................................................... 27
EXHIBIT 26: Underwriting & Investment Income – Select Private Players......................... 28
EXHIBIT 27: Underwriting & Investment Income – PSUs ................................................... 28
EXHIBIT 28: Aggregate Investment Book of PSU ................................................................ 29
EXHIBIT 29: Aggregate Investment Book of Select Private players .................................... 29
EXHIBIT 30: Median Solvency ............................................................................................ 30

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 EXECUTIVE SUMMARY
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SUMMARY
Highlights
This ICRA paper, on the general insurance sector in India, analyses the performance of 17 general insurance companies collectively
representing 90% of the industry-wide gross direct premium written (GDPW) during 9M FY2021. Of these companies analysed, four are from
the public sector and 13 from the private sector. Our industry analysis does not include specialised insurers such as Export Credit Guarantee
Corporation of India Limited (ECGC) and Agriculture Insurance Company of India Limited (AIC of India). The industry performance
Click to Provide Feedback encompasses all the players in the general insurance industry, while the financial performance, analysis section and outlook is pertaining to
the 17 entities listed earlier.
New vehicle sales, and health awareness » Business growth resumes in H2FY2021: After a steady growth in FY2017 and FY2018, the GI industry had seen a slowdown in the
are expected to fuel the growth in growth at 14% in FY2019. In CY2020, India had witnessed the onset of a COVID19 pandemic, which had resulted in a nation wide
FY2022. However as the claims reported lockdown for 2 months, and additional local lockdowns thereafter has a slowdown in the growth to 4% to Rs. 1.85 trillion in FY2021.
in the motor segment increase as PSU entities were slower to adjust to an online mode of growth, the reliance on physical meetings were higher which resulted in a
economic activity bounces back, ICRA 2% y-o-y decline in business (Rs. 718 billion in FY2021) while the private sector reported 8% y-o-y increase in GDPI to Rs. 1.13 trillion
expects the claims ratio to increase in in the same period.
FY2022
» Health and Fire segments show a resilient growth: In FY2021, the health & PA (Personal accident) business saw a growth of 12%,
(12% in FY2020). PSU entities had a muted growth in FY2020 (-2%), but saw a pick-up in growth in FY2021 (+2%). Private sector
entities saw a growth of 16% in FY2021, and 19% in FY2020. The motor insurance segment has traditionally been the biggest
segment for the GI industry, but its share has gradually declined from 46% in FY2016, to 37% in FY2021. For FY2021, the total motor
business had a growth of 2% to Rs. 678 billion, due to the lockdowns in CY2020, and lower new vehicle sales. The fire insurance
products accounted for 11% of the overall GDPI during FY2021 (8.9% in FY2020). The total premium had grown 27% (in FY2021),
compared to a growth of 35% in FY2020. The growth in FY2020 was strong for both PSU and Private sector players, but private
sector players increased market share in FY2021.
» Moderate growth expectations for FY2022: ICRA expects a 7%-9% growth in GDPI in FY2022, supported by growth in health
segment and uptick in motor segment. Despite underwriting losses, the sector is expected to report marginal return on equity (3%-
4.5%) largely supported by investment income which is highly regulated by the IRDAI.

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 GI Industry Outlook
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OUTLOOK/CREDIT OUTLOOK: STABLE
Covid-19 has resulted in a lower business growth; health segment losses expected to increase in FY2022

» Moderate growth expectation for FY2022: The General Insurance (GI) industry saw a bounce back in business growth in H2FY2021, after a sharp decline in H1 due to the pandemic
induced lockdowns. New vehicle sales, and medical insurance were the key products to pick up in H2FY2021 aiding the growth. FY2022 was expected to recover to pre-Covid levels
growth, before the second wave of the pandemic kicked in resulting in ICRA revising its business growth estimates downward from 12% -15% to 7%-9% for the sector, due to various
local lockdowns in the month of April and May 2021.
» PSU insurers business growth constrained by capital losses: PSU insurers are expected to report marginal GDPI growth of 4-5% in FY2022 as most of the public insurers remains
stretched on their solvency profile given reported losses. PSU insurers are expected to report high underwriting losses of Rs. 124 billion to Rs. 135 billion because of likely high
combined ratio of 121% - 123% in FY2022 driven by the likely high claims ratio on uncertainty related to second wave of pandemic and motor TP tail risk.
» Negative PAT expectation for the PSU insurers: The underwriting losses of PSU insurers are expected to be partially offset by investment income, however the return on equity is
expected to remain negative in the range of -3% to -6.%. Given higher losses, PSU insurers are struggling to meet required solvency levels and remain largely dependent on GoI’s
capital infusion. GoI infused Rs. 9,950 crore and Rs. 2,500 crore in FY2021 and FY2020, respectively among three PSU insurers to support their solvency profile (no capital infusion
announced in the February 2021 budget). ICRA expects the GoI support to be forthcoming to support PSU insurers solvency profile.
» Health segment to augment growth for private players: The select private insurers are expected to witness high single digit business growth in FY2022 supported by high under
penetration across segments in the general insurance industry and particularly likely demand for health segment post pandemic. The combined ratio is expected to improve to 104%
- 106% in FY2022 mainly due to better risk selection coupled with likely improvement in management expenses.
» Private players expected to have a comfortable solvency position: Despite underwriting losses, the select private insurers are expected to witness return on equity in the range of
10.9% - 12.4% in FY2022, largely supported by investment income which is highly regulated by the IRDAI. Solvency ratio is expected to remain healthy at 248% - 252% in FY2022
given relatively better risk selection, claims management and internal accruals largely supported by investment income. ICRA expects consolidation amongst the smaller players in
the industry, and the regulatory approval for foreign JV partner (to increase stake till 74%) is expected to provide capital and operational control amongst the smaller entities with a
foreign JV.

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GENERAL INSURANCE INDUSTRY OUTLOOK
General Insurance Industry Outlook for PSU insurers – FY2022

FY2022 Outlook
(The data reflects all the four public sector general insurers which accounted for entire public sector GDPI in FY2021)

GDPI Combined ratio Underwriting PAT/ NW Solvency ratio

losses

4% - 5% Growth 121% - 123% Rs. 124 bn -Rs. 135 bn -3% - -6% 150% - 155%

GDPI growth is expected Combined ratio is PSU insurers are expected The underwriting losses PSU insurers are struggling
to remain muted in expected to remain at to continue reporting are expected to be to meet required solvency
FY2022 given most of the elevated levels in FY2022 underwriting losses given partially offset by the levels and remains largely
PSU insurers remain given likely high claims high combined ratio investment income, dependent on GoI’s capital
stretched on the solvency ratio due to uncertainty >120% due to likely high however the PSU insurers infusion. GoI infused Rs.
position related to second wave of claims in motor and health are expected to report 9,950 crore in FY2021 and
pandemic and high motor segments negative return ratios Rs. 2,500 crore in FY2020
TP tail risk among three PSU insurers
to support their solvency
profile

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 General Insurance Industry Outlook for Select Private insurers 1– FY2022

FY2022 Outlook
(The data reflects thirteen private sector general insurers which accounted for ~93% of the private sector GDPI in FY2021)

GDPI Combined ratio Underwriting PAT/ NW Solvency ratio

losses

7% - 9% Growth 104% - 106% Rs. 24 bn -Rs. 35 bn 10.9% - 12.4% 248% - 252%

GDPI growth is expected Combined ratio is Better risk selection Despite underwriting Solvency ratio is expected
to remain in high single expected to marginally coupled with likely losses, the select private to remain healthy in
digits in FY2022 supported increase for the select improvement in insurers are expected to FY2022 given relatively
by high under penetration private insurers given management expenses by report return on equity better risk selection,
across segments in the expected rise in claims select private players is largely supported by claims management and
general insurance industry ratio from health and expected to restrict their investment income which internal accruals largely
and particularly likely motor segment underwriting losses is highly regulated by the supported by investment
demand for health IRDAI income
segment post pandemic

1 The estimates by ICRA are on aggregate basis for the industry, including the solvency levels

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 ICRA’s rated universe
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ICRA’S RATED UNIVERSE
Nine General Insurance companies rated by ICRA

EXHIBIT 1: Rating spread EXHIBIT 2: ICRA’s rated universe

4 4 Entity Long Term Rating Instruments

Cholamandalam MS General Insurance
Company Ltd. [ICRA]AA (stable) Subordinated debt
3 Bharti AXA General Insurance Company
Limited [ICRA]AA-&2 Subordinated debt
HDFC ERGO General Insurance Company Issuer rating /
2
2 Limited [ICRA]AAA (stable) subordinated debt
The Oriental Insurance Company Ltd [ICRA]AAA (negative) Subordinated debt
1 1 1 National Insurance Company Limited [ICRA]A+ (negative) Subordinated debt
1 [ICRA]AAA (stable) / Issuer rating /
Tata AIG General Insurance Company [ICRA]AA+ (stable) subordinated debt
ICICI Lombard General Insurance Company Issuer rating /
0 Limited [ICRA]AAA (stable) subordinated debt
AAA AA+ AA AA- A+ Royal Sundaram General Insurance [ICRA]AA+ (stable) Subordinated debt
GI Bajaj Allianz General Insurance Company
Limited [ICRA]AAA (stable) Issuer rating
Source: ICRA research Source: ICRA research

There are 9 companies under coverage in the General Insurance (GI) sector. ICRA has subordinated debt ratings (8 entities), and issuer ratings (4 entities) for the insurance companies. For
three entities ICRA has both issuer ratings and subordinated debt ratings.

As the insurance industry has a long gestation cycle, and has stringent capital requirements for growth, the companies relied on the parent sponsors for growth capital for an extended period
of time. The final ratings on all the companies under coverage is determined by parent strength and parent support. Royal Sundaram General Insurance, rated at [ICRA]AA+ (Stable), was
added in the month of November 2020.

2 Placed on watch with developing implications

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 Industry Performance Analysis and Outlook
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GROWTH RATE MARGINALLY IMPROVES IN H2 FY2021; SHARE OF PRIVATE PLAYERS INCREASES
EXHIBIT 3: Trends in Gross Domestic Premium (GDPI) EXHIBIT 4: GDPI share between Private and PSU players

2,000 35%
120%
1,800 29%
1,855 30%
1,787
1,600 100%
1,615
1,400 25%
1,415 80%
1,200 48% 50% 52%
20% 58% 59% 61%
1,183
1,000 20% 60%
14%
15%
800 915
11% 40%
600 8% 10%
52% 50% 48%
400 20% 42% 41% 39%
4%
5%
200
0%
- 0% FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
Public Private
GDPI Growth (RHS)

Source: ICRA research; GI Council, IRDAI, figs in INR Billion Source: ICRA research; GI Council, IRDAI

After a steady growth in FY2017 and FY2018, the GI industry had seen a slowdown in the growth to 14%. In CY2020, India had witnessed the onset of a Covid-19 pandemic, which had resulted
in a nation-wide lockdown for two months, and additional local lockdowns thereafter has resulted in a sharp slowdown in the growth to 4% to Rs. 1.85 trillion in FY2021. The growth had
picked up post September 2020. The share of private players had steadily increased over the last five years, post FY2018 the PSU entities had higher underwriting losses, and subsequent
erosion in capital constricting their growth.

ICRA expects the growth rate to improve in FY2022, if the second wave of the pandemic is contracted and no sharp third wave expected. The GI industry has adapted to sell policies online
and rely more on telecalling/video calling with customers in CY2020. However, due to the impact on disposable income, and the lockdown, the Motor OD segment is likely to report subdued
growth, while the Health Insurance segment is expected to grow strongly.

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PRIVATE PLAYERS CONTINUE TO CHART STRONGER GROWTH TRAJECTORY AIDED BY HEALTH AND FIRE INSURANCE
EXHIBIT 5: GDPI trend for Public Sector Entities (PSU) EXHIBIT 6: GDPI trend private sector players

800 30%
730 718 1,200 1,137 40%
25% 686 1,056
678 34%
700 25% 35%
597 1,000 930
600 30%
20% 26% 26%
477 800 737
500 25%
12% 15%
586
400 600 20%
10% 439 14%
300 7% 15%
400
5% 8% 10%
200 14% 1%
200
-2% 0% 5%
100
- 0%
- -5%
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
4% Private Growth (RHS)
Public Growth (RHS)

Source: ICRA research; GI Council, IRDAI, figs in INR Billion Source: ICRA research; GI Council, IRDAI, figs in INR Billion

The PSU entities had high underwriting losses in FY2019, and FY2020, which resulted in a constrained business growth subsequently. In CY2020 under the pandemic-induced lockdown, the
PSU entities were slower to adjust to an online mode of growth, the reliance on physical meetings were higher which resulted in a much sharper decline in business (-2% YoY to Rs. 718 billion
in FY2021). For the FY2021, the PSU players had a moderate growth in the health segment, and fire segments, however, the Motor segment witnessed a decline in business.

Private sector players had a higher growth trajectory in FY2019, and FY2020 and have gained market share from the PSU players. The private sector reported a 8% YoY increase in GDPI at Rs.
1.1 trillion in FY2021. Private sector players were able to adapt to the changing business dynamics in CY2020 at a faster pace compared to the PSU players. Private sector with a relative better
risk framework was able to increase the market share in fire segment, and health segment. In addition, the private sector also has a higher share in crop insurance underwritten in FY2021.

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HEALTH AND FIRE INSURANCE SEGMENTS FUEL GROWTH IN FY2021, AND FY2020
EXHIBIT 7: GDPI trend by segment for Public Sector Entities (PSU) EXHIBIT 8: GDPI trend by segment private sector players
1,137
800 730 718 1,200
686 1,056
678
700 930
597 1,000 149
600 79 41 148
57 51
477 737
800 157
500 37
586 313
217 235 246 273 270
400 0 600 119
191 439 220
300 156 99 162
400 18 107 445
200 276 262 254 232 93 438
198 237 382
200 317
100 226 265
49 51 52 53 70 84 56 65 89 117
- - 39 45
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

Fire Motor total Health PA Fire Motor total Health PA

Crop Engineering Marine Liablity Crop Engineering Marine Liablity
Others Grand total Others Grand total

Source: ICRA research; GI Council, IRDAI, figs in INR Billion Source: ICRA research; GI Council, IRDAI, figs in INR Billion

Motor: The Motor premium had slowed down its growth in FY2020, due to a slowdown in new vehicle sales. However, in FY2021, the business had declined by 2% on an annualised basis,
because of the pandemic-induced lockdowns. ICRA expects a marginal improvement in the business growth for FY2022, if there aren’t any widespread lockdowns, for the year. The impact
on growth was deeper for the PSU entities, compared to the private sector players, partly due to the high underwriting losses in FY2019, and FY2020.

Health: The premium in the health segment, had witnessed a 12% YoY growth in FY2021, as the importance of medical insurance took prevalence during the pandemic period. Both the public
sector as well as the private sector were able to register growth during the FY2021 period. For FY2020, the private sector registered a much quicker pace of growth (23% vs. 5% for PSU
companies)

Fire: The fire segment premium had seen a healthy growth of 27% YoY in FY2021. A large part of the increase was due to higher minimum reinsurance rack rates, which bought about a price
correction across the GI industry. The private sector had a higher growth due to a better-defined risk management of larger portfolios.

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HEALTH SEGMENT SHOWS A RESILIENT GROWTH IN FY2021 FOR BOTH PSU AND PRIVATE PLAYERS
EXHIBIT 9: GDPI trend for Health & PA segment EXHIBIT 10: Net loss ratio trends for the health & PA segment

700 637
568
140%
600 110%
97% 92%
509 120% 108% 100%
89%
500
423 100%
400 465 80%
334 400
275 337
300 60% 116% 120%
252 110% 107% 103%
164 96%
111 40% 80% 77% 71% 76% 73% 78%
200
20%
100 170 171 172 171
164 168 0%
FY2016 FY2017 FY2018 FY2019 FY2020 9MFY2021
-
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021
PSU (%) Private (%) Combined
PSU Private Total

Source: ICRA research; GI Council, IRDAI, figs in INR Billion Source: ICRA research; GI Council, IRDAI

The health insurance business can be classified into Government-sponsored health insurance, group health insurance (other than Government-sponsored) and individual health insurance.
In terms of contribution, the share of the group business was the highest at 51%, followed by individual business at 39% and Government business at 10% (Source: IRDAI annual report 2020).
The total lives covered had increased 5% YoY to 49 crore as of FY2020. Maharashtra, Tamil Nadu, and Karnataka covered ~50% of total health premium in FY2020.

In FY2021, the health & personal accident (PA) business saw a growth of 12%, (12% in FY2020). The PSU entities had a muted growth in FY2020 (-2%), but witnessed a pick-up in growth in
FY2021 (+2%), aided by a strong growth in the PA business. A large portion of the Government business is with the PSU entities, but the profitability of these products is low. Loss ratios for
the PSU entities had been historically high but has gradually improved. 9M FY2021 saw the lowest loss ratio in the health segment for PSUs in the last five years, due to lockdowns, in addition
a better product mix and pricing has helped. Private sector entities saw a growth of 16% in FY2021, and 19% in FY2020. The PA business for the private sector had seen a decline, both in
FY2021, and FY2020. The loss ratio for the private sector has been better than that of the PSUs for the last five years, but 9M FY2021 saw a minor uptick due to the Covid packages.

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MOTOR SEGMENT GROWTH HAD SLOWED IN FY2020, AND FY2021 FOR BOTH PSUS AND PRIVATE PLAYERS
EXHIBIT 11: GDPI trend for Motor Segment3 EXHIBIT 12: Net loss ratio trends for the Motor segment

300 500
427 417 450 130%
250 380 120%
400
330 110%
350
200
100%
265 300
90%
264 265 266 261
150 210 250
237 80%
214
200 70%
100
150 60%

100 50%
50
40%
50
FY2016 FY2017 FY2018 FY2019 FY2020 9MFY2021
- -
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 PSU Motor OD (%) PSU Motor TP (%)
Private Motor OD (%) Private Motor TP (%)
Private Motor OD Private Motor TP PSU Motor OD
PSU Motor TP Motor OD Total (RHS) Motor TP total (RHS)

Source: ICRA research; GI Council, IRDAI, figs in INR Billion Source: ICRA research; GI Council, IRDAI

The motor insurance product is designed to protect vehicle owners against damages to their own vehicles (own damage - OD - category) and to pay for any third-party liability arising from
damage to someone else’s vehicle (third party - TP - category) in multiple scenarios like accidents, theft and natural calamities. The motor insurance segment has traditionally been the biggest
segment for the GI industry, but its share has gradually declined from 46% in FY2016, to 37% in FY2021.

For FY2020 the total motor insurance business (OD+TP) had grown by 7% to Rs. 692 billion, partly subdued because of the slowdown in new vehicle sales. For FY2021, the total motor business
had a decline of 2% to Rs. 678 billion, due to the lockdowns in CY2020, and lower new vehicle sales. The private sector had a stronger growth for both OD, and TP products, while the PSU
entities were struggling with high loss ratios on the Motor TP products. Overall, the loss ratios for both the PSUs and the private sector players had declined in 9M FY2021 because of lower
economic activity in H1 FY2021, but ICRA expects the loss ratios to increase in Q4 FY2021 but should remain below the FY2020 levels. Individual agents and brokers formed the bulk of sales
by distribution, but other alternative channels like online sales have been increasing in the last two years.

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FIRE SEGMENT LOSS RATIOS DECLINE FOR BOTH, AS GIC RE INCREASES PREMIUM RATES
EXHIBIT 13: GDPI trend for Fire Segment EXHIBIT 14: Net loss ratio trends for the Fire segment

250
120%
201
84% 91% 79%
200 100% 83%
159 70%
74%
80%
150
117
117
108 60%
95 89 98%
100 87 91% 91%
40% 86%
65 76% 72% 66%
56 64% 66%
39 45 51% 57%
20% 48%
50
84
70
49 51 52 53 0%
FY2016 FY2017 FY2018 FY2019 FY2020 9MFY2021
-
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 PSU (%) Private (%) Combined
PSU Private Total

Source: ICRA research; GI Council, IRDAI, figs in INR Billion Source: ICRA research; GI Council, IRDAI

Fire insurance products cover factories, buildings, offices, warehouses and other structures against losses due to fire. The fire insurance products accounted for 11% of the overall GDPI during
FY2021 (8.9% in FY2020). The total premium had grown 27% (in FY2021), compared to a growth of 35% in FY2020. The growth in FY2020 was strong for both PSUs and the private sector
players, but the private sector players increased market share in FY2021.

GIC Re, had increased the premium rates for 219 occupancies in January 2020, this resulted in the industry increasing their premium rates, which also translated into better profitability for
the products. The combined net loss ratio for both had increased to a high of 91% in FY2019, with PSU entities having a loss ratio of ~98%, which had subsequently improved to 79% in
FY2020, and further to 70% in 9M FY2021. ICRA does note the incidences of natural calamities was lower in 9M FY2021, and so was the economic activity (due to the lockdowns). The increase
in rates had helped the PSU entities, particularly as the fire segment would now improve overall profitability. ICRA does expect the loss ratios to increase for FY2021, and FY2022 but they
are likely to be lower than the historically high rates.

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CROP SEGMENT SEES A DECLINE DUE TO CHANGE IN REGULATIONS
EXHIBIT 15: GDPI trend for Crop segment EXHIBIT 16: Net loss ratio trends for the Crop segment4

350 323
312
250%
300 280
255 196%
95
200%
250 72 121
204
79 150%
200
100% 106%
69 91% 92%
150 148 100% 82%
157
119 149
100 50%

115%
196%
100%

120%

101%

102%

122%

153%

103%
53 99

54%
86%

89%

95%
92%

87%

81%
94%
0%
50
35 79 0%
57 51 41
37 FY2016 FY2017 FY2018 FY2019 FY2020 9MFY2021
- 18
0
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 PSU (%) Private (%) AIC Combined
Public Private AIC Total

Source: ICRA research; GI Council, IRDAI, figs in INR Billion Source: ICRA research; GI Council, IRDAI

Crop insurance for the public and private sector players is primarily through the Pradhan Mantri Fasal Bima Yogana (PMFBY) or yield-based crop insurance, and a small per cent would be through
weather-based crop insurance. The area insured under the PMFBY had declined to 26,981 thousand hectares in FY2020 5(Rabi season) from 29,303 thousand hectares in FY2019. The total districts
under coverage had fallen to 390 from 463 districts in FY2020. A part of the reason for the reduced coverage was due to change in the rules (highlighted in subsequent section).

Prior to FY2017, AIC handled more than 50% of the total business volume. Post FY2017, the private sector participation had increased quite rapidly, PSU entities had increased their share in the total
crop GDPI. However, for FY2021, the PSU share has declined to 13% (24% in FY2020) to Rs. 41 billion. Retention in the crop portfolio is low with most companies having retention below 25%, however,
the loss ratios were high initially. The PSU entities have an increased participation, however, they saw their loss ratios increase consistently till FY2020. The private players have fared better with net
loss ratios decreasing to 81% in 9M FY2021.

4
Net loss ratio for PSU entities is not available for FY2016
5 Source: https://pmfby.gov.in/adminStatistics/dashboard

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RE-INSURANCE PREMIUM SEES A STEADY INCREASE WITH GIC’S RELIANCE REDUCING
EXHIBIT 17: Reinsurance trend

EXHIBIT 14: Net loss ratio trends for the Crop segment6
600.0

500.0 501
437
400.0 414

300.0

200.0

100.0 94 111
58
-
GIC Others GIC Others GIC Others
FY2018 FY2019 FY2020

Fire Marine Motor Health Misc Total

Source: ICRA research; IRDAI annual report, figs in INR Billion

The total reinsurance premium had increased by 15% in FY2020 to Rs. 612 billion. GIC formed the bulk of the re-insurance premium collections at 82% of the total in FY2020, however, the
contribution of other re-insurance companies had increased to 18% from 12% in FY2018. The miscellaneous segment (which includes crop insurance) is the largest segment of reinsurance at
42%, followed by the fire segment at 23%. ICRA does note that the other reinsurance companies had increased their pie in the health segment (~22% in FY2020).

As of FY2020, there were nine foreign reinsurance branches, and Lloyds operating in India. With the relaxation of the NOF for branches of foreign-owned reinsurance companies, and the
100% FDI allowance in insurance intermediaries should strengthen the re-insurance market in India in the medium term.

6
Net loss ratio for PSU entities is not available for FY2016

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MARGINAL IMPROVEMENTS CONTINUE IN PENETRATION AND DENSITY; METRICS WELL BELOW LEVELS REPORTED BY ADVANCED ECONOMIES
EXHIBIT 18: General Insurance density and penetration EXHIBIT 19: Gross Financial savings (as % of gross domestic product)

20 1.2 12.5 3
18 19 19 12 2.4
1 2.3 2.5
16 18 2.2
0.8 11.5 1.8
0.78 0.77 1.9
2
14 0.71 0.7 0.7 0.72 0.8 1.8
0.93 0.94 11 1.7 2
12 0.97
13.2 10.5 1.3
10 11 11 11.5 0.6 1.5
10 10.5 10 11.9
8
8.7 0.4
6 9.5 1
10.5 10.7 10.5
10.4 10.4 10.4 10.4
4 0.2
9 9.9
0.5
2 8.5
0 0 8 0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Density ($) Penetration (%) (RHS) Gross Financial Savings % Insurance funds % (RHS)

Source: ICRA research; IRDAI annual reports; RBI annual reports Source: ICRA research; IRDAI annual reports; RBI annual reports

Despite the country’s strong demographic profile, general insurance density levels have been rising at very low growth rates (CAGR of 10.7% during FY2008-19). The Government of India
(GoI) has, over the years, announced various initiatives aimed at improving the penetration and density levels. Of late, the GoI has made encouraging announcements pertaining to foreign
ownerships in insurance companies, NOF requirements for reinsurance companies, 100% FDI in insurance intermediaries, and setting up of a common insurance portal for selling products.

ICRA expects these steps to gradually start impacting the penetration and density matrices positively. However, ICRA also believes that if India is to match the penetration and density levels
of western economies, emphasis on compulsory insurance must also be given to sub-segments like health, personal accidents, property, etc. At present, only motor-TP insurance is compulsory
for individuals. The awareness level for insurance products also remains low, at present, with about 1.7% of the Gross National Disposable Income, parked in insurance funds, while savings
in currency and deposits hover at more than 5%.

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CLAIMS SETTLEMENT IMPROVEMENT ACROSS PSUS AND SELECT PRIVATE PLAYERS
EXHIBIT 20: Ageing of claims for PSU players EXHIBIT 21: Ageing of claims of select private players

70% 70%

60% 60%
50%
50% 50%
41%
40% 40% 34% 36%
33%
28% 31% 29%
30% 27% 30% 62% 25% 26%
58% 57% 57% 58%
53% 49%
18% 46%
20% 38% 37% 20%
34%
28%
10% 10%

0% 0%
FY2016 FY2017 FY2018 FY2019 FY2020 9MFY2021 FY2016 FY2017 FY2018 FY2019 FY2020 9MFY2021

Unsettled < 3 months ratio 1 year and above unsettled ratio Unsettled < 3 months ratio 1 year and above unsettled ratio

Source: ICRA research; GI Council, IRDAI Source: ICRA research; GI Council, IRDAI

ICRA has delved deeper into the ageing of claims data for the selected players to understand the number of claims yet to be settled over a one-year period. Typically, a large portion of these
claims are Motor TP claims, which take a long while to be settled because of the legal process.

For the PSU entities in 9M FY2021, the one year and above unsettled claims were 28% of the total compared to 33% in FY2020, indicating a faster claim settlement turnaround. For private
sector entities, longer tenor settlements have been declining gradually with unsettled claims greater than 1 year at 26% in 9M FY2021, compared to 34% in FY2016. Both the PSU and the
private sector players have been increasingly relying on out-of-the court settlement to speed up the closing, as well as avoid a high interest cost. During the pandemic period, the courts were
closed for a longer period, which could result in a longer settlement cycle in the near future.

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CLAIMS SETTLEMENT IMPROVEMENT ACROSS PSUS AND SELECT PRIVATE PLAYERS
EXHIBIT 22: Claims settlement ratio EXHIBIT 23: Claims settlement metrics

100% 5.0%
88% 86% 85% 4.5%
90% 83% 83%
79% 80% 45.0 1.8
80% 4.0%
74% 4.2% 40.0 1.6
4.7%
4.0% 3.5% 35.0 1.4
70% 4.7%
3.5% 30.0 1.2
3.0% 25.0 1.0
60% 3.3%
2.5% 20.0 0.8
50% 2.6% 15.0 0.6
2.0% 10.0 0.4
2.3%

24.8
12.7
11.7

19.5
17.9
16.3
16.4

24.0
19.0
18.3
20.2
22.0
39.3
40.3

16.8
15.3
36.7
19.9
18.7

34.0
0.5
6.9
0.4
6.2
0.8

0.8
8.6
0.3
7.6
1.1

1.0

0.7

1.7

0.5
40%

0.9

1.4
1.5% 5.0 0.2
- -
30% 1.0%

Private

Private

Private

Private
PSU

PSU

PSU

PSU
Overall

Overall

Overall

Overall
20% 0.5%
10% 0.0% FY2017 FY2018 FY2019 FY2020
PSU Private PSU Private PSU Private PSU Private
Claims booked Claims paid Claims Repudiated (RHS)
FY2017 FY2018 FY2019 FY2020

Claims settlement ratio Claims repudiation ratio

Source: ICRA research; IRDAI annual report and handbook Source: ICRA research; IRDAI annual report and handbook; number of claims in millions

The claims settlement ratio for the GI industry had seen an improvement in FY2020 at 86% (79% in FY2019). The PSU entities have had higher claim settlements compared to the private
sector players over the last three years. The claims repudiation ratio had increased to 3.5% in FY2020 (3.3% in FY2019), and the increase was due to the higher repudiation at the PSU entities
(4.2% vs 2.6% in the private sector). With the increase in business, the number of claims booked had been increasing over the last three years, and so had the number of claims paid during
the year.

ICRA expects the number of claims filed to be lower for FY2021, as motor claims are expected to be lower, however, the health claims would increase in FY2021. Due to a lot of uncertainty
in filing claims for Covid-related medical expenses.

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IMPORTANT REGULATORY/INDUSTRY ANNOUNCEMENTS
Changes in crop insurance schemes

• The Pradhan Mantri Fasal Bima Yojna (PMFBY) was made operational from Kharif 2016, whereby the existing Crop Insurance Schemes like the NAIS and the MNAIS were discontinued
and the existing WBCIS was restructured with farmer premium rates the same as the PMFBY w.e.f. Kharif 2016. The revamping of the PMFBY scheme w.e.f Kharif 2020 has led to a
significant change in the business dynamics. Major changes in the scheme are:

▪ The scheme has been made voluntary for all farmers. Whereas the major portion of the enrolment was from loanee farmers for whom the scheme was compulsory, a significant
drop in enrolment by around 30% 7is expected as the scheme is made voluntary for loanee farmers also and the Covid-19 pandemic is expected to further impact the drop in the
first year.

▪ The tenure of the tender/business allocation has been increased to three years. This change is continuity of business for a three-year period in allocated states/ districts and aids
in proper planning for resource allocations. However, the assumptions of expected business volumes used for pricing may differ due to the voluntary nature of the scheme year on
year, leading to an increase in the basis risk and resultant challenge of maintaining the required solvency to absorb the business risk.

Fire reinsurance rates

• The General Insurance Corporation (GIC Re), has increased its premiums for the property insurance segment across all 291 occupancies, which come under the portfolio, effective January
1, 2020. The insurers will have to follow the burn cost concept, which is the break-even rate. Structurally this is a move towards risk-based pricing. On an overall basis this has resulted
in higher premiums charged to end customers.

FDI limit increase in insurance sector

• An amendment to the Insurance Act, 1938 took place to increase the permissible FDI limit in Insurance companies. The limit is increased to 74% from 49% (at present) and allows foreign
ownership and control with safeguards. The increase in FDI limit and foreign ownership allowance, is a credit positive for the entire sector, and would especially benefit the smaller
insurance firms struggling to raise capital.

7 Business estimates by AIC, as indicated in the FY2020 annual report

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 FINANCIAL PERFORMANCE & ANALYSIS
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COMBINED RATIO IMPROVED DRIVEN BY LOWER CLAIMS RATIO; HOWEVER, UNDERWRITING LOSSES CONTINUED
EXHIBIT 24: Combined Ratios - PSU EXHIBIT 25: Combined Ratios - Select Private Players

140% 132% 124% 133% 132% 131% 140% 140% 140%

125% 118%
120% 120% 120% 112% 108% 104% 104% 104% 104% 120%
26% 22% 26% 23% 106%
100% 29% 22% 100% 100% 100%
25% 32% 32% 28%
28% 25% 28% 28%
80% 80% 80% 80%
60% 60% 60% 60%
100% 94% 104% 98% 100%
40% 89% 85% 40% 40% 80% 79% 76% 77% 40%
76% 76% 74%
20% 20% 20% 20%
0% 0% 0% 0%
-20% -20% -20% -20%
Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Dec-19 Dec-20 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Dec-19 Dec-20

Claims Ratio Expense Ratio Claims Ratio Expense Ratio

Net Commission Expenses / NPE Combined ratio (RHS) Net Commission Expenses / NPE Combined ratio (RHS)

Source: Company Disclosures, ICRA research Source: Company Disclosures, ICRA research

The combined ratio for the overall industry (PSU and Select Private Players) declined to 111% in 9M FY2021 from 119% in 9M FY2020. The decline was largely due to the PSU insurers
witnessing a decline in the combined ratio to 118% in 9M FY2021, compared to 131% in 9M FY2020, mainly due to an improvement in the claims ratio. The claims ratio declined to 85% in
9M FY2021 from 100% in 9M FY2020, mainly due to the lockdown, wherein lower number of vehicles were on the road and there was a decline in planned surgeries in the Health segment.
As a result, the PSU insurers reported an underwriting loss of Rs. 8,166 crore in 9M FY2021 compared to an underwriting loss of Rs. 12,830 crore in 9M FY2020.

The select private players had seen a continuous improvement in the claims ratio since FY2016, and as of December 31, 2020 it stood at 74% (decline from 77% in 9M FY2020). Further, the
private insurers reported an improvement in the expense ratio to 28% in 9M FY2021 from 32% levels in FY2016, driven by efficiency improvement on the back of better scale and leveraging
technology. The underwriting losses for the select private players reduced to Rs. 1,538 crore in 9M FY2021 from an underwriting loss of Rs. 2,199 crore in 9M FY2020.

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LOSS RATIO IMPROVED MAINLY DRIVEN BY MOTOR SEGMENT WITH LOWER CLAIMS GIVEN PANDEMIC-INDUCED LOCKDOWN
EXHIBIT 26: Net loss ratio by segment - 9M FY2021 EXHIBIT 27: Net loss ratio by segment - 9M FY2020

160% 120% 160% 120%

97% 108%
140% 92% 140% 95%
89% 89% 100% 92% 100%
87% 89%
120% 78% 78% 120% 82% 79%
74% 80%
70% 70% 80% 72% 80%
100% 66% 67%
100%
80% 60% 80% 60%
60% 60%
40% 40%
40% 40%
20% 20%
103%

108%

107%

143%

103%

100%
20%
72%
66%

79%
77%

97%
68%

96%
78%

81%

75%
73%

74%
62%

75%
81%

80%
49%

85%
74%
20%

89%
63%

71%
73%

66%

73%

97%

98%
78%

88%
73%

82%

75%
52%

77%
0% 0% 0% 0%
OD

TP
Fire

Others
Marine

Health & PA

Crop

Motor

Cumulative
Engineering

TP
Fire

Others
Crop

OD
Marine

Health & PA

Motor

Cumulative
Engineering
PSU Private Combined sector (RHS) PSU Private Combined sector (RHS)

Source: Company Disclosures, ICRA research Source: Company Disclosures, ICRA research

The cumulative net loss ratio for the combined sector (PSUs + Select Private Players) declined to 80% in 9M FY2021 (89% in 9M FY2020). Of this, the PSUs had a net loss ratio of 85% (100% in 9M
FY2020), while select private players had a net loss ratio of 74% (77% in 9M FY2020). For PSUs, the improvement in the loss ratios was largely led by motor, health and crop segments. The private
sector players were able to contain the loss ratios in the motor and the crop segment. The lockdown led to a decline in motor claims as vehicles were not plying on the roads while the good kharif crop
season resulted in lower claims in the crops segment in 9M FY2021. Further, in the health segment the private insurers increased their focus on the retail health segment while reduced their exposure
to group health and Government health segments, which typically report high loss ratios. The lower participation also resulted in the private players containing the risk in these segments compared to
the PSUs. Also, GIC Re hiked the fire reinsurance premium rates for all 291 occupancies from January 2020 and is expected to lower the net loss ratio for this segment.

The Crop segment witnessed a change in the guidelines w.e.f. April 2020 such as schemes being made voluntary for loanee farmers, each district/cluster to be mandatorily allotted for three years and
restriction in subsidies to states from the Centre. This resulted in a decline in the gross direct premium written in India (GDPI) for both PSU and private insurers in 9M FY2021. However, the Crop
segment is a highly reinsured segment, which, coupled with a good kharif crop season, resulted in lower loss ratio to 92% (108% in 9M FY2020). Nevertheless, the crop segment remains contingent on
climatic conditions, which are unpredictable and expose it to risk.

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NET PROFITABILITY LARGELY SUPPORTED BY INVESTMENT INCOME
EXHIBIT 28: Underwriting & Investment Income – Select Private Players EXHIBIT 29: Underwriting & Investment Income – PSUs

200.0 200.0

150.0 150.0

100.0 100.0
158 156 153
121 132 118
50.0 105 50.0 102
69 75 85 77 89
55
- -
(14) (15)
(26) (19) (23) (22) (50.0) (82)
(50.0) (32) (108) (126) (128)
(157)
(100.0) (185) (187)
(100.0)

(150.0) (150.0)

(200.0) (200.0)
FY2016 FY2017 FY2018 FY2019 FY2020 9M FY2020 9M FY2021 FY2016 FY2017 FY2018 FY2019 FY2020 9M FY2020 9M FY2021

Total Underwriting income/loss (Rs Bn) Investment income (Rs Bn) Total Underwriting income/loss (Rs Bn) Investment income (Rs Bn)

Source: Company Disclosures, ICRA research, Amount in Rs. billion Source: Company Disclosures, ICRA research, Amount in Rs. billion

The investment income earned by PSU insurers were not enough to offset the high underwriting losses in the last couple of years. However, in 9M FY2021, the underwriting losses declined
to Rs. 82 billion, lower than the investment income of Rs. 102 billion. With better underwriting capability and risk pricing the select private players had seen a reduction in their underwriting
losses to Rs. 15 billion in 9M FY2021 compared to Rs. 22 billion in 9M FY2020. Further, the investment income of select private players remain higher to absorb the underwriting losses. As
the insurance market matures, ICRA expects more private sector insurers to start reporting underwriting profits, driven by improved risk pricing and leveraging technology.

PSU insurers remains dependent on the Government of India (GoI) for capital infusion to maintain minimum solvency levels and business continuity, given the consistent underwriting losses
reported by them. In July 2020, the GoI called off the proposed merger of the three PSU insurers due to their net losses and low solvency levels. ICRA expects the select private players to
improve their profitability, as they increasingly re-align their portfolios towards lower risk, innovation in product design, and distribution channels.

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G-SECS DOMINATE THE INVESTMENTS; HOWEVER, EQUITY MIX CONSTITUTES HIGHER SHARE FOR PSU INSURERS, THEREBY EXPOSING IT TO VOLATILITY IN EQUITY
MARKETS

EXHIBIT 30: Aggregate Investment Book of PSU EXHIBIT 31: Aggregate Investment Book of Select Private players

1,600 10.0% 1,600 1,560 10.0%

1,499
1,335 1,393 1,358 1,324
1,400 1,268 1,220 1,400 9.0% 7.9% 1,288
8.1% 8.0% 7.9% 8.0%
1,200 1,200 8.2% 1,143
1,091 7.7%
7.5% 7.3% 6.8% 6.0% 943 6.8%
1,000 1,000 7.2% 6.0%
6.8% 6.6% 6.5% 768
800 800
4.0% 594 4.0%
600 600
400 400
2.0% 2.0%
200 200
- 0.0% - 0.0%
Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Dec-19 Dec-20 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Dec-19 Dec-20
Equity Shares GOI Securities Equity Shares GOI Securities
Debentures / Bonds Infrastructure / Social sector Debentures / Bonds Infrastructure / Social sector
Other Approved Securities Other securities Other Approved Securities Other securities
TOTAL Yield on investments (RHS) TOTAL Yield on investments (RHS)

Source: Company Disclosures, ICRA research, Amount in Rs. billion Source: Company Disclosures, ICRA research, Amount in Rs. billion

The investment operations of insurance companies operating in India are governed by the IRDAI regulations. The investment book for the sector (PSUs and select private players) increased
15.6% YoY to Rs. 3.06 trillion in 9M FY2021. Around 38% of the investment book comprised G-Secs and quasi-sovereign entities, while equities saw a decline in composition at 23.7% (on
balance sheet value, 25% as of December 31, 2019). The investment book of PSUs increased by 10.4% YoY to Rs. 1.50 trillion with investments in G-Secs increasing to 32% (28% as of December
31, 2019), while the composition of equity securities had reduced to 43% (45% as of December 31, 2019). A higher share of equity portfolio exposes PSU insurers to volatility in equity markets.
The other investment classes largely remained unchanged from last year. Yield on investments (excluding realised gains) increased 33 bps to 6.8%8.

8 Interest on investments includes interest, dividend and rent income as per regulatory disclosures

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The investment book of the select private sector players increased by 21.1% YoY to Rs. 1.6 trillion as of December 31, 2020. Unlike PSU insurers with a high share of equity investment to
total investment at ~40%, the equity share for select private players remained low at ~5.2% as on December 31, 2020. However, the share of G-secs remained high at 39% of total investments
as on December 31, 2020 from 35% as on December 31, 2019. The yield on investments declined for the select private sector players by 41 bps to 6.8% in 9M FY2021.

In terms of risk appetite, while a few players have exposures to (permitted) lower-rated categories, most non-G-Sec debt exposures are to issuers with strong group backing. Within debt
investments in the non-infrastructure/social segment, the select private players have a higher proportion of investments in corporate bonds/debentures (19% of the investment book as on
December 31, 2020) compared to PSUs (6%).

SELECT PRIVATE PLAYERS SOLVENCY RATIO REMAINS COMFORTABLE; WHILE PSUS SOLVENCY LARGELY SUPPORTED BY GOI’S CAPITAL INFUSION
EXHIBIT 32: Median Solvency EXHIBIT 33: Net Premium Written / Reported Net Worth

2.50 2.50
2.30
2.05 2.01
2.00 1.84 1.84 2.00 1.87 1.82
1.75 1.72 1.76 1.78 1.78 1.80
1.76
1.66 1.55 1.45
1.50 1.50 1.28
1.61
1.53
1.46 1.31
0.98
1.00 1.24 1.00 0.85
0.75 0.77

0.50 0.61 0.50

- -
FY2016 FY2017 FY2018 FY2019 FY2020 9M FY2020 9M FY2021 FY2016 FY2017 FY2018 FY2019 FY2020 9M FY2020 9M FY2021

PSU Select Pvt players Regulatory minimum PSU Select Pvt players

Source: Company Disclosures, ICRA research Source: Company Disclosures, ICRA research

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The solvency levels 9of the PSU insurers declined sharply in FY2020 but improved in 9M FY2021. The sharp deterioration in the solvency ratio below regulatory minimum was driven by weak
profitability with high underwriting losses, thereby resulting in net losses. Moreover, a sharp fall in the equity markets in March 2020 resulted in two PSU insurers reporting a reduction in
the fair value change account (FVCA) and two reported negative FVCA as on March 31, 2020, which adversely impacted the solvency ratio. It should be noted that at least three of the four
PSU insurers have used a part of the fair value adjustment for solvency calculations. Further, the solvency ratio of PSU insurers is largely supported by the Government of India’s capital
infusion of Rs. 2,500 crore in FY2020 and Rs. 9,950 crore in FY2021.

While the Select private players witnessed an improvement in the solvency ratio in the last couple of years with the median solvency ratio rising to 2.01 times as on December 31, 2020 from
1.84 times as on December 31, 2019. ICRA notes that the well-established private insurers have solvency ratios comfortably above the regulatory minimum. It should be noted that the
solvency ratio of the PSU and private insurers includes the subordinate debt issuance in the past couple of years. The total amount of subordinate debt issued by three of the four PSU insurers
and select private insurers stood at Rs. 2,545 crore and Rs. 2,037 crore, respectively as on December 31, 2020 which translated into 0.20 bps to 0.25 bps of solvency.

The PSU insurers reported a significant decline in the net worth to ~Rs. 25,490 crore as on March 31, 2020 from ~Rs. 57,650 crore as on March 31, 2019 largely due to the sharp decline in
equity capital markets which led to a reduction in the FVCA. This resulted in a sharp rise in net premium written / reported net worth to 2.30 in FY2020 from 0.98 in FY2019. However, the
impact of adverse movement in equity capital market was lower for select private players, given their low share of equity investment, higher churn in the portfolio, and the investment
strategy of matching liabilities flow to investment maturity (which results in higher debt investments). The net premium written / reported net worth for select private players was marginally
down, indicating that the business leverage has been declining for them while for PSU insurers it has been increasing.

9 ICRA measures the median solvency for the PSU and Select Private Players in this section. Our forward estimates are on an aggregated level.

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DIVERSIFIED DISTRIBUTION CHANNELS WITH SHARE OF BANCASSURANCE AND ALTERNATE CHANNELS TO IMPROVE GRADUALLY IN THE MEDIUM TERM
EXHIBIT 34: Channel-wise GDPI - select private insurers EXHIBIT 35: Channel-wise GDPI - PSUs
100% 100%
9% 9% 10% 8% 7% 6%
7%
13% 11% 11% 11% 11% 10% 24% 28%
80% 12% 80% 28% 31%
27% 33% 28%
27% 36% 30% 28%
60% 33% 30% 28% 60% 21% 22%
22% 21% 19% 22%
18%
40% 40%
30% 37%
29% 29% 32% 34% 35%
51% 43% 49% 43%
20% 20% 40% 43% 42%
20% 16% 16% 15% 14% 14% 15%
0% 0%
FY2016 FY2017 FY2018 FY2019 FY2020 9M FY2020 9M FY2021 FY2016 FY2017 FY2018 FY2019 FY2020 9M FY2020 9M FY2021
Individual agents Brokers Direct Business Individual agents Brokers Direct Business
Corporate Agents-Banks Corporate Agents -Others Micro Agents Corporate Agents-Banks Corporate Agents -Others Micro Agents
Referral (B) Referral (B)
Source: Company Disclosures, ICRA research Source: Company Disclosures, ICRA research

The share of individual agents remains low for select private players compared to PSU insurers. However, the PSU insurers’ share of individual agents is also on a declining trend but remains
high at 40%+ levels. Select private insurers have witnessed a consistent increase in the share of brokers channel, partly due to the MISP guidelines, which would have led to dealers signing
up as insurance brokers. Further, the direct business channel has been a major distribution source for the PSU and the private players for the health, fire and crop segments. The companies
largely source motor business through brokers or corporate agents and non-motor business from their employees. Bancassurance channel shares remain high at 10-12% for select private
insurers, compared to 1-3% for PSU insurers, given that banks are being allowed to distribute products of more than one insurance company and private insurers tying up with banks due to
their wide distribution reach. The leading general insurers are investing for development of its infrastructure such as social media, website development and tie up with e-commerce
companies. ICRA believes that the general insurance companies are likely to leverage alternate channels such as digitalisation or online distribution, virtual sales office and point of sale.

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COMFORTABLE LIQUIDITY PROFILE
EXHIBIT 36: Liquidity and liquidity buffer - select private insurers EXHIBIT 37: Liquidity and liquidity buffer - PSU insurers

200,000 2.50 200,000 2.50

2.19 2.15
180,000 180,000
1.96
160,000 2.00 160,000 1.78 2.00
1.24
140,000 140,000 1.54 1.52
1.20 1.19
120,000 1.50 120,000 1.34 1.50
1.20 1.20 1.20 1.22
100,000 100,000
80,000 1.00 80,000 1.00
60,000 60,000
109,125

120,522

116,702

141,240
40,000 0.50

143,656

163,225

166,342

173,211

144,082

162,509

179,079
40,000 0.50
59,919

74,951

93,381

20,000 20,000
- - - -
FY2016 FY2017 FY2018 FY2019 FY2020 9M FY20209M FY2021 FY2016 FY2017 FY2018 FY2019 FY2020 9M FY20209M FY2021
Total liquid assets Total liquid assets / total outflows (RHS) Total liquid assets Total liquid assets / total outflows (RHS)

Source: Company Disclosures, ICRA research , Amount in Rs. crore Source: Company Disclosures, ICRA research, Amount in Rs. crore

ICRA monitors the liquidity of the general insurance sector, on a bi-annual basis. Liquid assets10 across the sector was comfortable, and adequate to cover for short-term maturing debt. The
general insurance industry by regulations is not heavily levered (subordinated debt can be raised lower of 25% of paid-up capital including general reserve or 50% of the net worth). Liquid
assets for the select private players had shown a steady improvement, however, the cover improved marginally in 9M FY2021. The liquid assets cover for the PSU insurers declined marginally
in 9M FY2021 but improved from the FY2020 levels. Nevertheless, the coverage is adequate despite the declining trend. However, with stubbornly high underwriting losses, the PSUs have
to rely on the sale of investment securities to limit the impact on the bottomline.

10 Liquid assets are calculated by applying haircuts on the various investment classes (20% on equity, 10% on bonds, 7% on social and infrastructure debt, 1.5% on govt bonds, and 20% on all other investments) + Cash balance + Net due
from insurance entities. Total outflows is calculated as total technical reserves + total debt maturing in 1 year. The liquid asset cover is taken as a median of the entities in the respective universe.

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INVESTMENT LARGELY REGULATED WITH STRESSED INVESTMENT EXPOSURE REMAINS LOW
EXHIBIT 3: Major D rated investment exposure of the general insurance industry
Reliance IL&FS Financial Dewan Housing Reliance Home IL&FS Transportation
PSU insurers IL&FS Total
Capital Ltd Services Ltd Finance Finance Ltd Networks
Gross Investment 563 395 239 125 230 80 1,633
Provision 383 225 239 61 180 40 1,129
Net Investment 180 171 - 64 50 40 504

Reliance IL&FS Financial Dewan Housing Reliance Home IL&FS Transportation

Select Private Insurers IL&FS Total
Capital Ltd Services Ltd Finance Finance Ltd Networks
Gross Investment 390 265 199 375 85 47 1,361
Provision 287 134 164 259 39 47 930
Net Investment 103 131 35 116 45 - 431

Reliance IL&FS Financial Dewan Housing Reliance Home IL&FS Transportation

Industry (PSU + Select Private) IL&FS Total
Capital Ltd Services Ltd Finance Finance Ltd Networks
Gross Investment 953 661 438 500 315 127 2,994
Provision 670 358 403 321 220 87 2,059
Net Investment 283 302 35 180 95 40 935
% of total investment 0.3%
% of total net worth 1.1%
Source: Company Disclosures, ICRA research, Amount in Rs. crore

The investment operations for insurance companies operating in India are governed by the IRDAI regulations. The guidelines are prudent and are in line with the objectives of minimising
credit risks, while ensuring a return commensurate with the risk class. The credit risk profile for the investment portfolio for the industry indicates very low levels of credit risks with majority
of the investments into either sovereign securities or AAA/AA securities thus highly liquid and safe. Most companies’ investment guidelines allow investment in corporate debt, which carries
rating of AA and above. However, the above are few stressed investment exposures of the general insurers, which were highly rated but were subsequently downgraded to a lower category.
Nevertheless, the stressed investment exposures are largely provided at ~70% and the net investment exposure remains low at only 1.1% of the net worth.

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 COMPANY FINANCIALS
ICRA LIMITED
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Annexure 1: Combined Financial Indicators for the 17 Insurers
Rs in Billion All Players (17) Public Sector Players (4) Private Sector Players (13)
Year-Ending Period Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Months 12 12 12 9 12 12 12 9 12 12 12 9
Gross Direct Premium Written 1,341.4 1,491.0 1,614.9 1,220.6 705.7 716.9 765.4 548.7 635.7 774.0 849.5 671.9
Net Premium Earned 910.2 1,008.0 1,096.1 858.0 534.8 555.6 579.2 456.9 375.4 452.5 516.9 401.1
Net Claims Incurred 784.9 920.8 959.2 682.4 501.3 575.1 568.9 387.0 283.7 345.6 390.4 295.4
Net Commission Expenses 42.3 55.0 52.8 44.8 42.3 44.1 46.8 37.1 (0.0) 10.9 6.0 7.7
Total Management Expenses 222.8 236.5 294.4 227.9 117.2 121.7 150.9 114.5 105.7 114.8 143.5 113.4
Total Underwriting Surplus (139.9) (204.2) (210.4) (97.0) (125.9) (185.3) (187.4) (81.7) (14.0) (18.8) (23.0) (15.4)
Net Investment income 137.9 154.7 172.7 142.6 74.9 78.1 82.1 67.5 63.0 76.6 90.6 75.0
Operating Income Before Realised Gains (2.0) (49.5) (37.7) 45.5 (51.0) (107.2) (105.3) (14.1) 49.0 57.7 67.6 59.6
Total Realised Gains 95.6 86.5 85.1 47.8 83.2 77.9 70.9 34.1 12.4 8.7 14.2 13.7
Operating Income 93.7 37.0 47.4 93.3 32.3 (29.3) (34.4) 19.9 61.4 66.4 81.8 73.4
Total Other Income/ Expenses and provisions (4.4) (9.1) (33.5) (16.9) 0.9 (3.5) (19.4) (13.1) (5.3) (5.6) (14.1) (3.9)
Profit Before Tax 89.3 27.9 13.9 76.3 33.2 (32.8) (53.8) 6.9 56.1 60.7 67.7 69.5
Tax Provision 21.7 16.7 21.7 20.6 7.0 (0.7) 2.5 3.4 14.7 17.5 19.2 17.3
Profit After Tax 67.6 11.2 (7.8) 55.7 26.2 (32.1) (56.3) 3.5 41.4 43.3 48.4 52.2
BALANCE SHEET – LIABILITIES Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Paid-up Capital 73.1 79.0 109.7 180.7 8.6 12.7 37.7 107.2 64.4 66.3 71.9 73.5
Fair Value Change Account (FCVA) 404.2 362.8 87.1 262.3 396.0 359.1 102.3 246.8 8.2 3.8 (15.2) 15.5
Total Reserves 810.9 769.3 440.1 677.0 639.9 563.7 217.2 372.2 171.1 205.6 222.9 304.8
Reported Net Worth 884.0 848.3 549.7 857.7 648.5 576.5 254.9 479.4 235.5 271.8 294.8 378.3
Adjusted Net Worth (excl Fair Value Change) 479.8 485.5 462.6 595.4 252.5 217.4 152.6 232.6 227.3 268.1 310.0 362.8
Total Reserve for Unexpired Risk 503.2 553.8 575.3 609.3 268.6 276.6 285.4 298.5 234.6 277.2 290.0 310.8
Estimated Liability in Respect of Outstanding Claims 1,116.3 1,305.5 1,508.7 1,708.2 579.9 697.7 791.8 882.8 536.4 607.8 716.9 825.4
Total Technical Reserves 1,619.5 1,859.3 2,084.1 2,317.5 848.5 974.3 1,077.2 1,181.3 771.0 885.1 1,006.9 1,136.2
Subordinated debt 34.6 42.1 44.3 45.8 18.0 25.5 25.5 25.5 16.6 16.6 18.8 20.4
Total Current Liabilities 441.7 537.4 741.0 727.8 260.9 292.2 419.6 377.3 180.8 245.2 321.4 350.5
Total Liabilities 2,979.8 3,287.1 3,419.1 3,948.8 1,775.8 1,868.4 1,777.1 2,063.5 1,204.0 1,418.7 1,641.9 1,885.3
BALANCE SHEET – ASSETS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Total Loans 8.6 6.0 6.7 7.0 8.6 6.0 6.7 7.0 0.0 0.0 0.0 0.0
Total Investments 2,278.0 2,535.6 2,544.3 3,059.1 1,335.0 1,392.5 1,220.3 1,499.1 942.9 1,143.1 1,324.0 1,559.9
Cash & Bank Balances 177.8 175.9 197.7 177.7 142.4 152.0 167.3 159.5 35.5 23.9 30.4 18.2
Net Fixed Assets 29.5 33.6 37.4 36.6 15.2 17.3 17.3 16.3 14.4 16.3 20.1 20.3
Total Advances and Other Assets 485.9 536.1 632.9 668.4 274.6 300.6 365.5 381.6 211.2 235.5 267.5 286.8
Total Assets 2,979.8 3,287.1 3,419.1 3,948.8 1,775.8 1,868.4 1,777.1 2,063.5 1,204.0 1,418.7 1,641.9 1,885.3

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 All Players (17) Public Sector Players (4) Private Sector Players (13)
KEY FINANCIAL INDICATORS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Months 12 12 12 9 12 12 12 9 12 12 12 9
Insurance Profitability
Net Claims Incurred / NPE (Claims Ratio) 86.2% 91.3% 87.5% 79.5% 93.7% 103.5% 98.2% 84.7% 75.6% 76.4% 75.5% 73.6%
Management Expenses / NPE (Expense Ratio) 24.5% 23.5% 26.9% 26.6% 21.9% 21.9% 26.1% 25.1% 28.1% 25.4% 27.8% 28.3%
Net Commission Expenses / NPE 4.6% 5.5% 4.8% 5.2% 7.9% 7.9% 8.1% 8.1% 0.0% 2.4% 1.2% 1.9%
Combined Ratio (A) 115.4% 120.3% 119.2% 111.3% 123.5% 133.4% 132.4% 117.9% 103.7% 104.2% 104.4% 103.8%
Net Investment Income/NPE (B) 14.9% 15.1% 15.5% 16.3% 13.8% 13.8% 13.9% 14.2% 16.5% 16.7% 17.4% 18.6%
Operating Ratio (A-B) 100.4% 105.2% 103.6% 95.1% 109.7% 119.6% 118.5% 103.7% 87.2% 87.5% 87.0% 85.3%
Trading gains / NPE 10.5% 8.6% 7.8% 5.6% 15.6% 14.0% 12.2% 7.5% 3.3% 1.9% 2.7% 3.4%
Investment Income / NPE (including Realised Income) 25.4% 23.7% 23.3% 21.8% 29.4% 27.8% 26.1% 21.7% 19.8% 18.6% 20.1% 22.0%
Overall Profitability
Underwriting surplus (loss)/NPE -15.4% -20.3% -19.2% -11.3% -23.5% -33.4% -32.4% -17.9% -3.7% -4.2% -4.4% -3.8%
PAT/ Average Assets Deployed 2.9% 0.4% -0.3% 2.2% 2.1% -2.2% -3.6% 0.3% 3.9% 3.4% 3.2% 4.0%
PAT/ Total Asset Base 2.6% 0.4% -0.2% 2.0% 1.9% -2.1% -3.4% 0.3% 3.5% 3.1% 2.9% 3.7%
PAT/ Reported Net Worth 7.6% 1.3% -1.4% 8.7% 4.0% -5.6% -22.1% 1.0% 17.6% 15.9% 16.4% 18.4%
PAT/ Adjusted Net Worth 14.1% 2.3% -1.7% 12.5% 10.4% -14.8% -36.9% 2.0% 18.2% 16.2% 15.6% 19.2%
PBT/NPE 9.8% 2.8% 1.3% 8.9% 6.2% -5.9% -9.3% 1.5% 15.0% 13.4% 13.1% 17.3%
PAT / NPE 7.4% 1.1% -0.7% 6.5% 4.9% -5.8% -9.7% 0.8% 11.0% 9.6% 9.4% 13.0%
Capacity
NPE / Reported Net Worth 103.0% 118.8% 199.4% 133.4% 82.5% 96.4% 227.2% 127.1% 159.4% 166.5% 175.4% 141.4%
NPE / Adjusted Net Worth 189.7% 207.6% 236.9% 192.1% 211.8% 255.5% 379.5% 261.9% 165.1% 168.8% 166.7% 147.4%
Technical Reserves/Reported Net Worth 183.2% 219.2% 379.1% 270.2% 130.8% 169.0% 422.5% 246.4% 327.4% 325.6% 341.6% 300.3%
Technical Reserves /Adjusted Net Worth 337.5% 383.0% 450.5% 389.2% 336.0% 448.1% 705.8% 507.9% 339.2% 330.2% 324.8% 313.2%
Net Claims Incurred / Reported Net Worth 88.8% 108.5% 174.5% 106.1% 77.3% 99.8% 223.1% 107.6% 120.5% 127.1% 132.4% 104.1%
Net Claims Incurred / Adjusted Net Worth 163.6% 189.7% 207.3% 152.8% 198.5% 264.5% 372.8% 221.8% 124.8% 128.9% 125.9% 108.6%
Liquidity
Cash + Liquid assets/ Technical Reserve 151.6% 145.8% 131.6% 139.7% 174.1% 158.5% 128.8% 140.4% 126.9% 131.8% 134.5% 138.9%
Technical Reserves/ Liquid Assets 65.9% 68.6% 76.0% 71.6% 57.4% 63.1% 77.6% 71.2% 78.8% 75.8% 74.3% 72.0%
FVCA / Tech Reserves 25.0% 19.5% 4.2% 11.3% 46.7% 36.9% 9.5% 20.9% 1.1% 0.4% -1.5% 1.4%

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Annexure 2: Entity-wise Financial Indicators
Rs in Billion New India United National
Year-Ending Period Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Months 12 12 12 9 12 12 12 9 12 12 12 9
P&L Statement
Gross Direct Premium Written 251.6 266.1 297.2 229.3 174.3 164.2 175.2 118.9 162.4 151.8 153.1 105.5
Net Premium Written 209.6 221.2 244.9 196.8 123.9 137.9 137.4 99.4 114.7 96.5 94.5 93.4
Net Claims Incurred 169.0 205.0 215.1 152.9 121.4 143.4 139.5 89.0 128.7 114.3 102.5 69.7
Net Commission Expenses 18.2 22.0 22.9 18.4 6.7 7.3 7.6 6.3 11.0 8.2 8.0 6.3
Total Management Expenses 35.3 40.4 38.3 41.1 26.0 30.6 34.3 26.3 29.0 26.1 43.9 24.1
Total Underwriting Surplus (25.2) (52.5) (41.0) (19.8) (25.4) (50.2) (44.0) (22.6) (56.0) (44.6) (57.6) (15.6)
Net Investment income 28.6 31.9 34.5 27.7 17.9 19.0 19.7 15.6 15.3 14.1 13.5 12.0
Operating Income Before Realised Gains 3.3 (20.6) (6.5) 8.0 (7.5) (31.3) (24.3) (7.1) (40.7) (30.5) (44.0) (3.6)
Total Realised Gains 23.1 28.4 35.4 15.9 20.3 14.2 12.1 5.2 19.8 15.3 6.0 7.8
Operating Income 26.4 7.8 28.9 23.9 12.8 (17.1) (12.2) (1.9) (21.0) (15.2) (38.1) 4.2
Total Other Income/ Expenses and provisions 0.8 (1.4) (12.5) (6.9) (0.5) (1.7) (2.6) (2.7) (0.9) (1.7) (3.0) (2.8)
Profit Before Tax 27.3 6.4 16.4 17.0 12.3 (18.8) (14.9) (4.5) (21.8) (17.0) (41.1) 1.4
Tax Provision 5.2 0.7 2.2 3.4 2.3 0.0 0.0 0.0 (0.1) (0.0) 0.0 (0.0)
Profit After Tax 22.0 5.8 14.2 13.6 10.0 (18.8) (14.9) (4.5) (21.7) (17.0) (41.1) 1.4
BALANCE SHEET - LIABILITIES Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Paid-up Capital 4.1 8.2 8.2 8.2 1.5 1.5 2.0 31.1 1.0 1.0 25.0 49.8
Fair Value Change Account (FCVA) 228.9 222.6 102.5 173.8 42.0 34.5 (6.2) 19.6 38.5 26.1 (16.6) 11.4
Total Reserves 378.9 372.0 251.5 340.3 88.7 62.5 6.9 28.2 56.1 26.8 (63.3) (32.4)
Reported Net Worth 383.0 380.2 259.7 348.5 90.2 64.0 8.9 59.2 57.1 27.8 (38.3) 17.3
Adjusted Net Worth (excl Fair Value Change) 154.1 157.6 157.3 174.7 48.2 29.4 15.1 39.6 18.6 1.7 (21.8) 5.9
Total Reserve for Unexpired Risk 100.2 106.4 116.9 121.4 62.6 69.4 69.4 69.8 55.5 48.0 45.7 54.7
Estimated Liability in Respect of Outstanding Claims 197.2 231.1 259.7 290.8 140.9 182.8 212.9 236.2 138.3 158.8 178.7 198.1
Total Technical Reserves 297.4 337.5 376.6 412.2 203.5 252.2 282.3 305.9 193.8 206.8 224.4 252.7
Subordinated debt 0.0 0.0 0.0 0.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0
Total Current Liabilities 85.9 77.0 109.8 96.2 59.2 51.9 59.8 42.0 87.9 80.8 113.9 117.5
Total Liabilities 766.3 794.7 746.1 857.0 361.8 377.1 360.0 416.2 347.8 324.3 308.9 396.5
BALANCE SHEET - ASSETS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Total Loans 2.6 2.8 3.1 3.2 2.7 1.4 1.8 1.9 1.9 0.4 0.4 0.4
Total Investments 555.4 591.9 513.8 642.0 298.2 316.6 279.3 326.2 253.4 236.9 220.5 294.8
Cash & Bank Balances 90.2 96.0 111.7 98.3 20.2 17.6 17.4 29.6 9.3 13.1 7.0 6.7
Net Fixed Assets 5.1 5.2 4.9 4.4 1.8 2.5 2.7 2.6 3.1 3.7 3.7 3.7
Total Advances and Other Assets 113.0 98.8 112.5 109.1 39.0 39.0 58.9 55.9 80.0 70.2 77.3 91.0
Total Assets 766.3 794.7 746.1 857.0 361.8 377.1 360.0 416.2 347.8 324.3 308.9 396.5

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 New India United National
KEY FINANCIAL INDICATORS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Insurance Profitability
Net Claims Incurred / NPE (Claims Ratio) 85.7% 95.4% 91.4% 79.3% 94.4% 109.4% 101.5% 89.9% 114.2% 109.9% 105.9% 82.5%
Management Expenses / NPE (Expense Ratio) 16.8% 18.3% 15.6% 20.9% 21.0% 22.2% 25.0% 26.5% 25.3% 27.0% 46.4% 25.8%
Net Commission Expenses / NPE 8.7% 9.9% 9.4% 9.4% 5.4% 5.3% 5.6% 6.4% 9.6% 8.5% 8.5% 6.7%
Combined Ratio (A) 111.2% 123.6% 116.4% 109.6% 120.7% 136.9% 132.0% 122.7% 149.1% 145.4% 160.8% 115.1%
Net Investment Income/NPE (B) 14.5% 14.8% 14.7% 14.4% 13.2% 13.9% 12.9% 13.7% 13.5% 12.8% 13.8% 13.6%
Operating Ratio (A-B) 96.7% 108.7% 101.8% 95.2% 107.5% 123.0% 119.1% 109.1% 135.6% 132.6% 147.0% 101.5%
Trading gains / NPE 11.7% 13.2% 15.1% 8.3% 15.8% 10.8% 8.8% 5.3% 17.5% 14.7% 6.2% 9.2%
Investment Income / NPE (including Realised Income) 26.2% 28.0% 29.7% 22.7% 29.0% 24.7% 21.7% 18.9% 31.1% 27.5% 20.0% 22.8%
Overall Profitability
Underwriting surplus (loss)/NPE -12.8% -24.4% -17.4% -10.2% -19.8% -38.3% -32.0% -22.9% -49.7% -42.8% -59.5% -18.5%
PAT/ Average Assets Deployed 4.5% 1.1% 2.4% 2.8% 3.4% -5.7% -4.2% -1.6% -7.6% -5.6% -13.3% 0.5%
PAT/ Total Asset Base 4.1% 1.0% 2.2% 2.7% 3.1% -5.5% -4.1% -1.5% -7.0% -5.7% -12.6% 0.5%
PAT/ Reported Net Worth 5.7% 1.5% 5.5% 5.2% 11.1% -29.4% -166.4% -10.2% -38.0% -61.0% 107.2% 10.7%
PAT/ Adjusted Net Worth 14.3% 3.7% 9.0% 10.4% 20.8% -63.8% -98.4% -15.2% -116.6% -982.2% 188.8% 31.3%
PBT/NPE 13.8% 3.0% 7.0% 8.8% 9.5% -14.3% -10.8% -4.6% -19.4% -16.3% -42.4% 1.7%
PAT / NPE 11.2% 2.7% 6.0% 7.1% 7.8% -14.3% -10.8% -4.6% -19.3% -16.3% -42.4% 1.7%
Capacity
NPW / Reported Net Worth 54.7% 58.2% 94.3% 75.3% 137.4% 215.6% 1538.9% 223.9% 200.6% 347.2% -246.6% 719.4%
NPW / Adjusted Net Worth 136.0% 140.3% 155.7% 150.2% 257.1% 468.5% 909.6% 334.5% 615.9% 5588.3% -434.4% 2094.5%
Technical Reserves/Reported Net Worth 77.6% 88.8% 145.0% 118.3% 225.6% 394.2% 3161.6% 516.7% 339.2% 743.9% -585.5% 1460.2%
Technical Reserves /Adjusted Net Worth 193.0% 214.1% 239.5% 236.0% 422.2% 856.6% 1868.8% 772.1% 1041.2% 11972.9% -1031.5% 4251.5%
Net Claims Incurred / Reported Net Worth 44.1% 53.9% 82.8% 58.5% 134.6% 224.1% 1561.9% 200.5% 225.2% 411.4% -267.4% 536.7%
Net Claims Incurred / Adjusted Net Worth 109.6% 130.0% 136.8% 116.7% 251.8% 486.9% 923.2% 299.5% 691.4% 6621.0% -471.2% 1562.8%
Liquidity
Cash + Liquidi assets/ Technical Reserve 217.1% 203.8% 166.1% 179.6% 156.5% 132.5% 105.1% 116.3% 135.6% 120.9% 101.4% 119.3%
Technical Reserves/ Liquid Assets 46.1% 49.1% 60.2% 55.7% 63.9% 75.5% 95.2% 86.0% 73.8% 82.7% 98.6% 83.8%
FVCA / Tech Reserves 77.0% 66.0% 27.2% 42.2% 20.6% 13.7% -2.2% 6.4% 19.9% 12.6% -7.4% 4.5%
Solvency ratio 2.6 2.1 2.1 2.2 1.5 1.5 0.3 1.4 1.6 1.0 0.0 0.6

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Rs in Billion Oriental Bajaj Allianz ICICI Lombard
Year-Ending Period Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Months 12 12 12 9 12 12 12 9 12 12 12 9
P&L Statement
Gross Direct Premium Written 117.4 134.8 140.0 95.0 94.5 110.6 127.8 97.9 123.6 144.9 133.1 105.3
Net Premium Written 100.3 108.5 109.9 80.8 67.3 77.7 80.2 54.5 78.4 95.4 96.4 79.2
Net Claims Incurred 82.2 112.5 111.8 75.4 40.4 48.1 58.0 39.4 53.1 63.1 68.5 50.0
Net Commission Expenses 6.4 6.6 8.2 6.1 3.2 3.7 0.9 -0.2 -2.8 2.2 3.6 4.9
Total Management Expenses 26.9 24.7 34.4 23.0 14.1 18.1 23.2 15.0 21.1 20.1 22.9 20.1
Total Underwriting Surplus (19.2) (38.1) (44.8) (23.7) 2.9 0.2 -0.1 2.3 -2.3 -1.7 -1.1 -1.0
Net Investment income 13.2 13.2 14.4 12.2 9.2 11.1 12.7 9.9 10.9 13.7 16.9 14.0
Operating Income Before Realised Gains (6.1) (24.9) (30.4) (11.4) 12.1 11.3 12.6 12.2 8.5 12.0 15.8 13.0
Total Realised Gains 20.1 20.0 17.4 5.1 1.8 1.1 2.8 2.1 4.5 4.3 3.2 2.3
Operating Income 14.0 (4.9) (13.0) (6.3) 13.9 12.4 15.4 14.3 13.0 16.3 19.0 15.2
Total Other Income/ Expenses and provisions 0.7 0.6 (2.0) (1.3) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Profit Before Tax 14.7 (4.3) (15.0) (7.6) 13.5 11.5 13.8 14.1 12.0 16.0 17.0 15.0
Tax Provision (0.4) (1.4) 0.3 0.0 4.3 3.7 3.8 3.5 3.3 5.5 5.0 3.8
Profit After Tax 15.1 (2.9) (15.2) (7.6) 9.2 7.8 10.0 10.6 8.6 10.5 11.9 11.3
BALANCE SHEET - LIABILITIES Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Paid-up Capital 2.0 2.0 2.5 18.2 1.1 1.1 1.1 1.1 4.5 4.5 4.5 4.5
Fair Value Change Account (FCVA) 86.6 75.9 22.6 42.0 0.3 0.8 -3.1 3.6 7.3 3.4 -4.3 6.1
Total Reserves 116.1 102.5 22.1 36.2 43.6 50.5 55.3 72.6 48.2 52.0 52.5 74.2
Reported Net Worth 118.1 104.5 24.6 54.4 44.7 51.6 56.4 73.7 52.8 56.6 57.1 78.7
Adjusted Net Worth (excl Fair Value Change) 31.6 28.6 2.0 12.4 44.4 50.9 59.5 70.1 45.4 53.2 61.3 72.7
Total Reserve for Unexpired Risk 50.3 52.8 53.4 52.6 36.1 43.8 41.8 40.0 44.4 56.0 58.4 63.6
Estimated Liability in Respect of Outstanding Claims 103.4 125.0 140.5 157.7 59.2 68.5 83.6 99.5 159.2 164.3 180.1 185.2
Total Technical Reserves 153.7 177.8 193.9 210.4 95.3 112.2 125.4 139.5 203.5 220.3 238.5 248.8
Subordinated debt 0.0 7.5 7.5 7.5 0.0 0.0 0.0 0.0 4.9 4.9 4.9 4.9
Total Current Liabilities 28.0 82.5 136.1 121.6 29.4 33.4 36.8 45.0 36.4 52.3 70.1 59.9
Total Liabilities 299.8 372.3 362.1 393.8 169.4 197.2 218.7 258.2 297.5 334.0 370.4 392.3
BALANCE SHEET - ASSETS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Total Loans 1.5 1.4 1.4 1.5 - - - - - - - -
Total Investments 228.0 247.1 206.7 236.2 139.9 167.9 183.0 213.9 181.9 222.3 263.3 298.9
Cash & Bank Balances 22.6 25.2 31.2 24.9 8.3 4.6 5.8 5.2 5.9 4.0 0.3 1.1
Net Fixed Assets 5.1 5.9 6.0 5.6 3.1 3.4 4.3 4.3 4.1 4.7 6.8 6.4
Total Advances and Other Assets 42.6 92.5 116.7 125.7 18.0 21.4 25.6 34.8 105.6 103.0 100.1 85.8
Total Assets 299.8 372.3 362.1 393.8 169.4 197.2 218.7 258.2 297.5 334.0 370.4 392.3

ICRA LIMITED
Page | 40
 Oriental Bajaj Allianz ICICI Lombard
KEY FINANCIAL INDICATORS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Months 12 12 12 9 12 12 12 9 12 12 12 9
Insurance Profitability
Net Claims Incurred / NPE (Claims Ratio) 85.4% 106.5% 102.0% 93.3% 66.7% 68.6% 70.7% 69.8% 76.9% 75.3% 72.9% 67.5%
Management Expenses / NPE (Expense Ratio) 26.9% 22.7% 31.3% 28.4% 20.9% 23.2% 28.9% 27.4% 26.9% 21.1% 23.8% 25.4%
Net Commission Expenses / NPE 6.4% 6.1% 7.4% 7.5% 4.7% 4.8% 1.1% -0.4% -3.6% 2.3% 3.8% 6.2%
Combined Ratio (A) 118.6% 135.3% 140.8% 129.3% 92.3% 96.6% 100.8% 96.8% 100.2% 98.8% 100.4% 99.1%
Net Investment Income/NPE (B) 13.6% 12.4% 13.5% 15.1% 14.8% 15.8% 15.3% 16.9% 15.7% 16.4% 17.9% 18.9%
Operating Ratio (A-B) 105.0% 122.9% 127.2% 114.2% 77.5% 80.9% 85.5% 79.9% 84.5% 82.4% 82.5% 80.2%
Trading gains / NPE 20.9% 19.0% 15.9% 6.4% 2.9% 1.5% 3.4% 3.8% 6.5% 5.1% 3.4% 3.0%
Investment Income / NPE (including Realised Income) 34.5% 31.3% 29.4% 21.5% 17.8% 17.3% 18.7% 20.7% 22.2% 21.4% 21.3% 21.9%
Overall Profitability
Underwriting surplus (loss)/NPE -20.0% -36.0% -40.9% -29.3% 4.8% 0.3% -0.1% 4.1% -3.3% -2.0% -1.1% -1.4%
PAT/ Average Assets Deployed 7.7% -1.2% -4.9% -3.3% 6.4% 4.3% 4.9% 6.1% 3.4% 3.4% 3.4% 4.1%
PAT/ Total Asset Base 7.1% -1.0% -4.5% -2.9% 5.4% 4.0% 4.5% 5.5% 3.0% 3.2% 3.2% 3.9%
PAT/ Reported Net Worth 12.8% -2.8% -61.9% -18.6% 20.6% 15.1% 17.7% 19.1% 16.3% 18.5% 20.9% 19.1%
PAT/ Adjusted Net Worth 47.8% -10.3% -760.7% -81.8% 20.8% 15.3% 16.8% 20.1% 19.0% 19.7% 19.5% 20.7%
PBT/NPE 15.3% -4.1% -13.7% -9.4% 22.3% 16.4% 16.8% 25.0% 17.3% 19.1% 18.0% 20.3%
PAT / NPE 15.7% -2.8% -13.9% -9.4% 15.2% 11.1% 12.2% 18.7% 12.5% 12.5% 12.7% 15.2%
Capacity
NPW / Reported Net Worth 84.9% 103.8% 446.4% 198.1% 150.7% 150.6% 142.1% 98.7% 148.7% 168.6% 169.0% 134.1%
NPW / Adjusted Net Worth 317.7% 378.8% 5484.4% 871.7% 151.7% 152.9% 134.7% 103.8% 172.7% 179.3% 157.2% 145.3%
Technical Reserves/Reported Net Worth 130.1% 170.2% 787.9% 386.9% 213.3% 217.3% 222.3% 189.3% 385.9% 389.2% 417.9% 316.0%
Technical Reserves /Adjusted Net Worth 487.0% 621.0% 9678.9% 1702.9% 214.6% 220.7% 210.7% 199.0% 448.2% 414.0% 388.7% 342.4%
Net Claims Incurred / Reported Net Worth 69.6% 107.7% 454.2% 184.8% 90.5% 93.2% 102.9% 71.2% 100.8% 111.5% 120.1% 84.6%
Net Claims Incurred / Adjusted Net Worth 260.4% 392.9% 5579.7% 813.5% 91.1% 94.6% 97.5% 74.9% 117.0% 118.6% 111.7% 91.7%
Liquidity
Cash + Liquidi assets/ Technical Reserve 163.1% 153.2% 122.7% 124.1% 155.6% 153.6% 150.5% 157.1% 92.3% 102.8% 110.5% 120.6%
Technical Reserves/ Liquid Assets 61.3% 65.3% 81.5% 80.6% 64.3% 65.1% 66.4% 63.6% 108.4% 97.3% 90.5% 82.9%
FVCA / Tech Reserves 56.3% 42.7% 11.7% 20.0% 0.3% 0.7% -2.5% 2.6% 3.6% 1.5% -1.8% 2.4%
Solvency ratio 1.7 1.6 0.9 1.5 2.8 2.6 2.5 3.3 2.1 2.2 2.2 2.8

ICRA LIMITED
Page | 41
Rs in Billion HDFC Ergo Iffco Tokio Reliance
Year-Ending Period Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Months 12 12 12 9 12 12 12 9 12 12 12 9
P&L Statement
Gross Direct Premium Written 72.9 86.1 93.1 87.5 56.3 70.0 79.6 64.4 50.7 61.9 74.7 63.0
Net Premium Written 34.6 43.7 46.3 45.3 36.5 41.9 47.4 38.7 31.6 36.9 39.3 31.0
Net Claims Incurred 22.3 29.1 33.8 36.6 26.8 35.6 41.0 30.5 24.2 30.3 34.1 22.1
Net Commission Expenses -2.7 -1.5 -2.3 -1.4 1.1 2.1 1.7 1.6 -0.6 -0.1 -2.2 -1.1
Total Management Expenses 10.5 11.3 14.1 14.0 7.1 5.6 7.4 5.5 8.9 9.7 12.6 11.2
Total Underwriting Surplus -0.2 -0.8 -1.8 -0.9 -2.7 -3.0 -3.8 -1.4 -4.0 -4.6 -3.7 -4.9
Net Investment income 5.7 6.6 7.9 7.6 5.0 5.6 6.7 5.6 5.5 6.9 7.7 6.3
Operating Income Before Realised Gains 5.5 5.8 6.1 6.6 2.3 2.6 2.9 4.2 1.6 2.3 4.0 1.4
Total Realised Gains 0.8 0.7 0.8 1.0 0.4 0.2 0.4 0.5 0.5 0.4 1.6 1.9
Operating Income 6.3 6.5 6.9 7.6 2.6 2.8 3.3 4.7 2.1 2.7 5.6 3.3
Total Other Income/ Expenses and provisions 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Profit Before Tax 5.1 4.7 6.1 6.8 2.6 2.4 2.7 4.5 1.7 2.1 3.0 2.9
Tax Provision 1.1 0.8 1.6 1.7 0.7 0.6 0.6 1.0 0.0 0.0 0.4 1.1
Profit After Tax 4.0 3.8 4.5 5.1 1.9 1.8 2.0 3.5 1.7 2.1 2.6 1.8
BALANCE SHEET - LIABILITIES Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Paid-up Capital 6.1 6.1 6.1 7.1 2.7 2.7 2.7 2.7 2.5 2.5 2.5 2.5
Fair Value Change Account (FCVA) 0.2 -0.3 -0.8 0.1 0.0 0.0 0.0 0.0 -0.1 -0.4 -1.0 0.0
Total Reserves 11.8 13.5 17.5 26.6 16.1 19.8 21.8 25.3 11.5 13.1 15.0 17.7
Reported Net Worth 17.8 19.5 23.6 33.7 18.7 22.5 24.6 28.1 14.0 15.7 17.5 20.2
Adjusted Net Worth (excl Fair Value Change) 17.6 19.8 24.3 33.6 18.7 22.5 24.6 28.1 14.1 16.0 18.5 20.2
Total Reserve for Unexpired Risk 22.8 28.4 30.9 39.3 18.8 20.3 21.5 24.1 13.6 15.2 13.7 17.4
Estimated Liability in Respect of Outstanding Claims 29.0 35.6 44.7 60.5 37.8 43.1 53.2 62.1 47.2 53.7 64.2 72.0
Total Technical Reserves 51.8 64.0 75.6 99.8 56.6 63.4 74.7 86.2 60.8 68.9 77.9 89.4
Subordinated debt 3.5 3.5 3.5 5.0 0.0 0.0 0.0 0.0 2.3 2.3 2.3 2.3
Total Current Liabilities 30.4 28.2 45.0 48.7 10.3 17.1 25.4 24.1 16.4 21.0 30.2 38.0
Total Liabilities 103.5 115.3 147.7 187.3 85.6 103.0 124.6 138.4 93.5 107.8 127.9 149.9
BALANCE SHEET - ASSETS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Total Loans - - - - - - - - - - - -
Total Investments 81.6 91.0 115.0 157.5 71.5 89.1 96.8 111.0 80.0 94.0 108.2 123.9
Cash & Bank Balances 4.4 3.9 7.3 3.2 1.9 0.7 3.7 0.4 3.4 1.6 0.9 2.3
Net Fixed Assets 2.1 2.1 2.4 2.8 0.3 0.6 0.7 0.8 0.4 0.3 0.4 0.4
Total Advances and Other Assets 15.5 18.2 22.9 23.7 11.9 12.6 23.5 26.3 9.7 11.9 18.3 23.3
Total Assets 103.5 115.3 147.7 187.3 85.6 103.0 124.6 138.4 93.5 107.8 127.9 149.9

ICRA LIMITED
Page | 42
 HDFC Ergo Iffco Tokio Reliance
KEY FINANCIAL INDICATORS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Months 12 12 12 9 12 12 12 9 12 12 12 9
Insurance Profitability
Net Claims Incurred / NPE (Claims Ratio) 74.4% 76.4% 77.2% 75.7% 82.9% 88.3% 88.6% 84.4% 84.7% 85.8% 83.7% 81.0%
Management Expenses / NPE (Expense Ratio) 30.5% 25.9% 30.5% 30.9% 19.5% 13.3% 15.7% 14.1% 28.1% 26.4% 32.0% 36.2%
Net Commission Expenses / NPE -7.8% -3.5% -5.0% -3.0% 3.1% 5.1% 3.5% 4.0% -1.8% -0.3% -5.6% -3.7%
Combined Ratio (A) 97.1% 98.7% 102.6% 103.7% 105.5% 106.7% 107.8% 102.5% 111.0% 111.9% 110.1% 113.5%
Net Investment Income/NPE (B) 16.7% 16.8% 18.1% 15.7% 15.4% 13.9% 14.5% 15.5% 19.4% 19.6% 18.9% 22.9%
Operating Ratio (A-B) 80.4% 81.9% 84.6% 88.0% 90.1% 92.8% 93.3% 87.0% 91.6% 92.3% 91.2% 90.6%
Trading gains / NPE 2.6% 1.9% 1.7% 2.0% 1.1% 0.4% 0.9% 1.4% 1.8% 1.1% 3.8% 6.8%
Investment Income / NPE (including Realised Income) 19.2% 18.8% 19.8% 17.7% 16.5% 14.3% 15.4% 16.9% 21.2% 20.6% 22.8% 29.7%
Overall Profitability
Underwriting surplus (loss)/NPE -0.6% -2.0% -4.1% -2.0% -8.4% -7.4% -8.3% -3.8% -13.8% -13.1% -9.1% -17.8%
PAT/ Average Assets Deployed 4.3% 3.6% 3.6% 4.2% 2.4% 1.9% 1.8% 3.6% 1.9% 2.1% 2.2% 1.7%
PAT/ Total Asset Base 3.9% 3.3% 3.0% 3.6% 2.2% 1.7% 1.6% 3.4% 1.8% 2.0% 2.0% 1.6%
PAT/ Reported Net Worth 22.7% 19.6% 19.0% 20.2% 10.1% 7.9% 8.3% 16.7% 11.8% 13.5% 14.8% 11.6%
PAT/ Adjusted Net Worth 22.9% 19.3% 18.4% 20.2% 10.1% 7.9% 8.3% 16.7% 11.7% 13.2% 14.0% 11.6%
PBT/NPE 17.1% 12.3% 14.0% 14.2% 8.0% 5.8% 5.8% 12.5% 5.8% 6.0% 7.3% 10.5%
PAT / NPE 13.5% 10.1% 10.2% 10.6% 5.8% 4.4% 4.4% 9.7% 5.8% 6.0% 6.4% 6.4%
Capacity
NPW / Reported Net Worth 194.1% 223.7% 196.3% 179.1% 194.9% 185.9% 193.1% 183.8% 226.4% 235.7% 225.1% 204.4%
NPW / Adjusted Net Worth 196.2% 220.6% 190.2% 179.8% 194.9% 185.8% 192.9% 183.8% 225.1% 230.4% 213.1% 204.2%
Technical Reserves/Reported Net Worth 291.0% 327.4% 320.5% 295.9% 301.7% 281.7% 304.1% 307.0% 435.1% 439.9% 445.8% 442.6%
Technical Reserves /Adjusted Net Worth 294.2% 322.8% 310.5% 297.1% 301.6% 281.5% 303.8% 306.9% 432.7% 430.1% 422.0% 442.1%
Net Claims Incurred / Reported Net Worth 125.1% 148.8% 143.5% 144.7% 143.1% 158.0% 166.9% 144.8% 173.1% 193.5% 195.2% 146.2%
Net Claims Incurred / Adjusted Net Worth 126.4% 146.8% 139.0% 145.3% 143.1% 157.9% 166.7% 144.7% 172.2% 189.2% 184.8% 146.0%
Liquidity
Cash + Liquidi assets/ Technical Reserve 165.9% 148.3% 161.9% 161.1% 129.8% 141.6% 134.5% 129.1% 137.1% 138.8% 140.1% 141.1%
Technical Reserves/ Liquid Assets 60.3% 67.4% 61.8% 62.1% 77.1% 70.6% 74.3% 77.4% 72.9% 72.0% 71.4% 70.9%
FVCA / Tech Reserves 0.4% -0.4% -1.0% 0.1% 0.0% 0.0% 0.0% 0.0% -0.1% -0.5% -1.3% 0.0%
Solvency ratio 2.1 1.8 1.9 2.0 1.6 1.7 1.6 1.8 1.7 1.6 1.5 1.7

ICRA LIMITED
Page | 43
Rs in Billion Tata AIG Chola MS Royal Sundaram
Year-Ending Period Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Months 12 12 12 9 12 12 12 9 12 12 12 9
P&L Statement
Gross Direct Premium Written 54.4 77.4 73.8 60.3 41.0 44.3 44.0 31.2 26.2 31.7 36.7 20.3
Net Premium Written 39.3 50.5 47.3 42.2 31.9 33.5 34.1 23.8 20.3 22.1 23.6 15.2
Net Claims Incurred 23.7 35.9 37.6 25.0 20.5 23.4 25.8 17.3 15.6 18.5 19.4 12.4
Net Commission Expenses 1.5 0.3 -0.3 1.8 0.4 0.1 0.5 0.3 0.5 1.4 1.5 1.0
Total Management Expenses 10.9 14.5 15.5 12.8 8.6 9.3 10.6 8.0 5.3 3.8 4.6 3.5
Total Underwriting Surplus -2.8 -4.9 -4.2 -3.6 (1.3) (2.3) (2.5) (1.7) (2.0) (1.8) (2.7) (0.9)
Net Investment income 4.1 5.9 8.3 7.2 4.3 5.1 5.8 4.9 2.9 3.6 3.8 3.1
Operating Income Before Realised Gains 1.3 1.1 4.1 3.6 3.0 2.8 3.3 3.2 0.9 1.8 1.1 2.2
Total Realised Gains 1.1 0.5 0.8 1.7 0.5 0.2 1.8 1.2 0.5 0.2 0.4 0.4
Operating Income 2.3 1.6 4.9 5.3 3.6 3.0 5.1 4.4 1.4 2.0 1.5 2.6
Total Other Income/ Expenses and provisions 0.0 0.0 0.0 0.0 (0.1) (0.5) (2.5) (1.3) (0.1) (0.2) (1.1) (0.4)
Profit Before Tax 2.0 1.3 4.6 5.0 3.5 2.5 2.5 3.1 1.3 1.8 0.4 2.3
Tax Provision 0.5 0.2 1.2 1.2 1.0 0.7 1.1 0.8 0.4 0.6 0.2 0.6
Profit After Tax 1.6 1.1 3.3 3.8 2.4 1.8 1.5 2.4 0.8 1.2 0.2 1.7
BALANCE SHEET - LIABILITIES Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Paid-up Capital 7.3 9.1 9.9 9.9 3.0 3.0 3.0 3.0 4.5 4.5 4.5 4.5
Fair Value Change Account (FCVA) 0.5 0.4 -3.3 3.9 0.1 0.1 (0.3) 0.2 (0.0) (0.1) (1.1) 0.7
Total Reserves 8.6 11.3 12.2 23.0 10.1 11.7 12.8 15.6 5.7 6.9 6.1 9.6
Reported Net Worth 15.9 20.4 22.1 33.0 13.1 14.7 15.7 18.6 10.2 11.3 10.6 14.1
Adjusted Net Worth (excl Fair Value Change) 15.4 20.0 25.4 29.1 13.0 14.5 16.0 18.4 10.2 11.5 11.7 13.4
Total Reserve for Unexpired Risk 22.3 27.0 25.7 31.9 19.3 22.3 22.1 22.0 11.1 11.4 12.2 11.3
Estimated Liability in Respect of Outstanding Claims 26.6 40.0 53.6 66.7 33.2 42.3 53.5 62.8 21.4 28.2 33.6 38.9
Total Technical Reserves 48.9 67.0 79.3 98.6 52.4 64.6 75.5 84.8 32.6 39.5 45.8 50.2
Subordinated debt 1.8 1.8 3.6 3.6 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0
Total Current Liabilities 13.8 35.0 30.1 35.7 11.2 10.6 13.1 15.0 3.9 5.9 10.3 8.6
Total Liabilities 80.3 124.1 135.2 171.0 77.7 90.9 105.4 119.4 47.7 57.8 67.7 73.9
BALANCE SHEET - ASSETS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Total Loans - - - - - - - - - - - -
Total Investments 66.2 100.5 118.9 155.6 63.7 76.0 90.8 104.9 42.9 50.8 57.5 63.7
Cash & Bank Balances 5.1 2.9 3.5 2.7 0.6 0.6 0.4 0.3 0.7 0.7 0.6 0.4
Net Fixed Assets 1.6 1.9 2.1 2.2 0.7 0.7 0.7 0.7 0.3 0.3 0.3 0.3
Total Advances and Other Assets 7.4 18.8 10.7 10.5 12.7 13.7 13.5 13.5 3.9 6.0 9.4 9.5
Total Assets 80.3 124.1 135.2 171.0 77.7 90.9 105.4 119.4 47.7 57.8 67.7 73.9

ICRA LIMITED
Page | 44
 Tata AIG Chola MS Royal Sundaram
KEY FINANCIAL INDICATORS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Months 12 12 12 9 12 12 12 9 12 12 12 9
Insurance Profitability
Net Claims Incurred / NPE (Claims Ratio) 71.1% 78.3% 77.4% 69.6% 72.5% 76.6% 75.0% 72.6% 80.4% 84.8% 85.0% 77.6%
Management Expenses / NPE (Expense Ratio) 27.7% 28.7% 32.7% 30.3% 26.9% 27.6% 31.0% 33.4% 26.0% 17.1% 19.6% 23.2%
Net Commission Expenses / NPE 3.9% 0.6% -0.6% 4.2% 1.3% 0.4% 1.5% 1.1% 2.6% 6.2% 6.4% 6.5%
Combined Ratio (A) 102.7% 107.6% 109.6% 104.1% 100.8% 104.6% 107.5% 107.1% 108.9% 108.1% 111.1% 107.3%
Net Investment Income/NPE (B) 12.3% 13.0% 17.2% 20.0% 15.2% 16.1% 16.8% 20.4% 15.1% 16.6% 16.8% 19.5%
Operating Ratio (A-B) 90.4% 94.6% 92.4% 84.1% 85.6% 88.5% 90.7% 86.7% 93.8% 91.6% 94.3% 87.8%
Trading gains / NPE 3.2% 1.1% 1.6% 4.7% 1.9% 0.8% 5.2% 5.2% 2.3% 1.0% 1.6% 2.5%
Investment Income / NPE (including Realised Income) 15.5% 14.0% 18.8% 24.7% 17.1% 16.9% 22.0% 25.6% 17.5% 17.6% 18.4% 22.0%
Overall Profitability
Underwriting surplus (loss)/NPE -8.5% -10.6% -8.7% -10.0% -4.5% -7.4% -7.2% -7.1% -10.3% -8.4% -12.0% -5.7%
PAT/ Average Assets Deployed 2.3% 1.1% 2.6% 3.4% 3.6% 2.1% 1.5% 2.9% 2.0% 2.3% 0.4% 3.2%
PAT/ Total Asset Base 2.0% 0.9% 2.4% 3.0% 3.1% 2.0% 1.4% 2.6% 1.7% 2.1% 0.4% 3.1%
PAT/ Reported Net Worth 9.9% 5.5% 15.1% 15.2% 18.5% 12.2% 9.5% 17.0% 8.1% 10.7% 2.3% 16.0%
PAT/ Adjusted Net Worth 10.2% 5.6% 13.2% 17.2% 18.7% 12.3% 9.3% 17.2% 8.1% 10.6% 2.1% 16.8%
PBT/NPE 6.1% 2.9% 9.4% 13.9% 12.3% 8.2% 7.4% 13.2% 6.5% 8.3% 1.8% 14.1%
PAT / NPE 4.7% 2.4% 6.9% 10.5% 8.6% 5.9% 4.3% 9.9% 4.3% 5.5% 1.1% 10.6%
Capacity
NPW / Reported Net Worth 247.4% 247.7% 213.9% 170.5% 243.5% 228.4% 216.6% 170.6% 198.5% 195.0% 221.6% 143.7%
NPW / Adjusted Net Worth 255.4% 252.1% 186.4% 193.0% 246.2% 230.6% 212.7% 172.5% 198.3% 193.0% 201.3% 150.9%
Technical Reserves/Reported Net Worth 307.5% 328.8% 358.9% 299.0% 400.2% 440.4% 479.9% 455.8% 318.1% 348.7% 430.9% 356.7%
Technical Reserves /Adjusted Net Worth 317.4% 334.7% 312.6% 338.6% 404.6% 444.8% 471.3% 460.9% 317.9% 345.2% 391.3% 374.6%
Net Claims Incurred / Reported Net Worth 148.8% 176.0% 170.1% 101.2% 156.3% 159.1% 163.7% 124.0% 152.4% 163.6% 182.4% 117.7%
Net Claims Incurred / Adjusted Net Worth 153.7% 179.1% 148.2% 114.6% 158.0% 160.7% 160.8% 125.4% 152.3% 161.9% 165.7% 123.6%
Liquidity
Cash + Liquidi assets/ Technical Reserve 145.9% 154.4% 154.4% 160.5% 122.6% 118.5% 120.7% 124.1% 133.8% 130.2% 126.8% 127.8%
Technical Reserves/ Liquid Assets 68.5% 64.8% 64.8% 62.3% 81.5% 84.4% 82.8% 80.6% 74.7% 76.8% 78.9% 78.3%
FVCA / Tech Reserves 1.0% 0.5% -4.1% 3.9% 0.3% 0.2% -0.4% 0.2% 0.0% -0.3% -2.3% 1.3%
Solvency ratio 1.7 1.6 1.8 2.2 1.6 1.6 1.6 2.0 2.2 1.9 1.7 2.2

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Rs in Billion SBI General Bharati AXA Shriram General Insurance
Year-Ending Period Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Months 12 12 12 9 12 12 12 9 12 12 12 9
P&L Statement
Gross Direct Premium Written 35.4 47.1 68.0 52.8 17.5 22.6 31.3 24.3 21.0 23.6 24.7 15.6
Net Premium Written 17.3 25.6 35.7 25.5 12.7 15.2 20.0 14.3 19.8 21.8 23.1 14.5
Net Claims Incurred 13.2 17.2 21.6 19.4 10.1 10.8 14.3 9.2 17.4 14.1 14.8 13.1
Net Commission Expenses (1.4) (0.1) (1.1) (1.5) 0.6 0.5 1.1 0.7 0.6 0.8 1.2 0.8
Total Management Expenses 5.7 5.9 9.1 7.0 3.6 5.2 7.4 5.7 2.3 2.8 4.7 2.8
Total Underwriting Surplus 0.9 0.8 0.7 0.2 (2.2) (2.5) (4.5) (1.7) (1.7) 2.9 2.0 (0.3)
Net Investment income 3.6 4.2 5.0 4.2 2.5 2.7 3.3 2.8 5.8 6.6 7.2 5.2
Operating Income Before Realised Gains 4.5 5.0 5.8 4.4 0.3 0.2 (1.2) 1.1 4.1 9.5 9.2 4.9
Total Realised Gains 0.3 0.4 0.4 1.0 0.2 0.2 0.6 0.5 1.7 0.5 1.2 0.8
Operating Income 4.9 5.5 6.1 5.4 0.5 0.4 (0.5) 1.5 5.7 10.0 10.4 5.6
Total Other Income/ Expenses and provisions (0.6) (0.8) (0.5) 0.0 (1.4) (0.3) (1.9) (0.6) 0.0 0.0 (0.4) (0.1)
Profit Before Tax 4.2 4.7 5.6 5.4 (0.9) 0.0 (2.4) 0.9 5.7 10.0 10.0 5.6
Tax Provision 0.3 1.4 1.5 1.4 - - - - 1.7 3.4 2.6 1.2
Profit After Tax 4.0 3.3 4.1 4.0 (0.9) 0.0 (2.4) 0.9 4.0 6.6 7.4 4.3
BALANCE SHEET - LIABILITIES Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Paid-up Capital 2.2 2.2 2.2 2.2 16.2 16.2 20.1 20.6 2.6 2.6 2.6 2.6
Fair Value Change Account (FCVA) (0.1) (0.0) (0.8) 0.8 0.1 (0.0) (0.0) 0.1 (0.1) (0.0) (0.3) 0.1
Total Reserves 12.7 16.0 19.2 24.8 (11.0) (11.0) (13.4) (12.4) 11.5 16.8 17.0 18.3
Reported Net Worth 14.9 18.2 21.3 26.9 5.2 5.2 6.6 8.1 14.1 19.4 19.6 20.9
Adjusted Net Worth (excl Fair Value Change) 14.9 18.2 22.1 26.2 5.2 5.2 6.6 8.0 14.2 19.4 20.0 20.8
Total Reserve for Unexpired Risk 15.5 17.2 22.6 23.0 6.3 7.5 9.3 9.6 11.1 12.3 12.6 10.7
Estimated Liability in Respect of Outstanding Claims 19.5 24.5 29.7 35.8 19.1 20.9 24.2 27.4 55.6 58.0 62.7 71.4
Total Technical Reserves 35.0 41.7 52.3 58.7 25.4 28.4 33.4 37.1 66.7 70.3 75.4 82.1
Subordinated debt - - - - 2.2 2.2 2.6 2.6 - - - -
Total Current Liabilities 9.4 13.9 19.4 23.3 5.8 10.5 15.4 19.0 3.4 5.1 6.5 5.6
Total Liabilities 59.3 73.8 92.9 109.0 38.7 46.3 58.0 66.7 84.1 94.7 101.5 108.6
BALANCE SHEET - ASSETS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Total Loans - - - - - - - - - - - -
Total Investments 52.9 63.6 74.3 88.8 32.1 38.8 47.7 54.8 78.8 89.4 95.1 103.1
Cash & Bank Balances 0.4 1.8 2.1 0.7 1.2 1.1 2.4 0.3 1.1 0.6 0.3 0.3
Net Fixed Assets 0.6 0.9 1.1 1.1 0.2 0.2 0.2 0.2 0.5 0.5 0.5 0.5
Total Advances and Other Assets 5.4 7.5 15.4 18.5 5.2 6.1 7.7 11.4 3.8 4.3 5.6 4.7
Total Assets 59.3 73.8 92.9 109.0 38.7 46.3 58.0 66.7 84.1 94.7 101.5 108.6

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 SBI General Bharati AXA Shriram General Insurance
KEY FINANCIAL INDICATORS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Months 12 12 12 9 12 12 12 9 12 12 12 9
Insurance Profitability
Net Claims Incurred / NPE (Claims Ratio) 71.5% 72.0% 71.1% 77.3% 83.1% 77.0% 78.3% 66.3% 93.8% 68.3% 65.0% 79.8%
Management Expenses / NPE (Expense Ratio) 33.1% 23.2% 25.5% 27.5% 28.6% 34.4% 36.7% 40.1% 11.6% 13.0% 20.5% 19.5%
Net Commission Expenses / NPE -8.2% -0.3% -3.0% -6.0% 4.8% 3.5% 5.4% 4.8% 2.9% 3.7% 5.4% 5.6%
Combined Ratio (A) 96.4% 94.9% 93.6% 98.8% 116.5% 115.0% 120.4% 111.1% 108.2% 85.0% 90.9% 104.9%
Net Investment Income/NPE (B) 19.5% 15.0% 15.0% 16.5% 19.0% 19.3% 17.9% 19.2% 31.0% 32.2% 31.6% 31.6%
Operating Ratio (A-B) 77.0% 79.9% 78.6% 82.3% 97.5% 95.7% 102.5% 92.0% 77.2% 52.8% 59.3% 73.4%
Trading gains / NPE 1.9% 1.8% 1.2% 4.1% 1.6% 1.3% 3.3% 3.3% 9.0% 2.2% 5.4% 4.7%
Investment Income / NPE (including Realised Income) 21.3% 16.9% 16.2% 20.6% 20.6% 20.6% 21.2% 22.5% 40.0% 34.4% 37.0% 36.3%
Overall Profitability
Underwriting surplus (loss)/NPE 5.1% 3.4% 2.5% 0.8% -18.1% -18.2% -24.4% -12.3% -9.1% 14.0% 8.7% -2.0%
PAT/ Average Assets Deployed 7.5% 5.1% 5.0% 5.5% -2.6% 0.1% -4.7% 2.0% 5.1% 7.4% 7.6% 5.6%
PAT/ Total Asset Base 6.7% 4.5% 4.4% 5.0% -2.4% 0.1% -4.2% 1.9% 4.8% 7.0% 7.3% 5.3%
PAT/ Reported Net Worth 26.6% 18.3% 19.3% 20.0% -17.7% 0.6% -36.8% 15.3% 28.4% 34.2% 37.8% 27.5%
PAT/ Adjusted Net Worth 26.5% 18.3% 18.6% 20.5% -17.9% 0.6% -36.8% 15.5% 28.2% 34.1% 37.1% 27.7%
PBT/NPE 22.9% 19.7% 18.6% 21.5% -7.6% 0.2% -13.3% 6.7% 30.9% 48.6% 44.1% 33.9%
PAT / NPE 21.5% 14.0% 13.6% 16.1% -7.6% 0.2% -13.3% 6.7% 21.6% 32.2% 32.7% 26.3%
Capacity
NPW / Reported Net Worth 116.2% 140.5% 167.4% 126.3% 242.3% 293.1% 303.1% 234.8% 140.3% 112.4% 117.4% 92.5%
NPW / Adjusted Net Worth 115.6% 140.3% 161.1% 130.0% 245.0% 291.2% 302.9% 236.9% 139.5% 112.2% 115.5% 93.1%
Technical Reserves/Reported Net Worth 235.5% 229.0% 245.3% 218.0% 486.0% 549.8% 505.7% 456.4% 472.8% 362.2% 383.8% 392.7%
Technical Reserves /Adjusted Net Worth 234.3% 228.5% 236.1% 224.4% 491.4% 546.2% 505.3% 460.4% 470.4% 361.6% 377.5% 395.2%
Net Claims Incurred / Reported Net Worth 88.5% 94.5% 101.2% 96.0% 192.5% 208.2% 216.7% 151.8% 123.4% 72.5% 75.2% 83.5%
Net Claims Incurred / Adjusted Net Worth 88.1% 94.3% 97.3% 98.8% 194.6% 206.9% 216.6% 153.1% 122.7% 72.4% 74.0% 84.1%
Liquidity
Cash + Liquidi assets/ Technical Reserve 152.3% 156.9% 146.1% 152.3% 130.9% 140.6% 149.8% 148.7% 119.8% 128.0% 126.7% 126.1%
Technical Reserves/ Liquid Assets 65.7% 63.7% 68.4% 65.7% 76.4% 71.1% 66.7% 67.3% 83.5% 78.1% 79.0% 79.3%
FVCA / Tech Reserves -0.2% -0.1% -1.6% 1.3% 0.2% -0.1% 0.0% 0.2% -0.1% 0.0% -0.4% 0.2%
Solvency ratio 2.5 2.3 2.3 2.2 1.9 1.8 1.6 1.6 2.4 3.5 3.7 3.6

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Rs in Billion Universal Sompo Future
Year-Ending Period Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Months 12 12 12 9 12 12 12 9
P&L Statement
Gross Direct Premium Written 23.1 28.3 28.6 21.8 19.1 25.5 34.2 27.6
Net Premium Written 13.8 13.5 14.7 10.5 15.1 17.2 21.6 15.8
Net Claims Incurred 6.7 8.8 9.6 9.4 9.7 10.8 11.8 11.0
Net Commission Expenses (0.5) 0.7 0.5 0.4 0.0 0.7 0.9 0.5
Total Management Expenses 2.9 2.6 2.9 1.7 4.6 5.8 8.6 6.1
Total Underwriting Surplus 2.9 0.4 0.1 0.0 (1.6) (1.6) (1.5) (1.5)
Net Investment income 1.3 1.8 2.0 1.8 2.2 2.6 3.2 2.7
Operating Income Before Realised Gains 4.2 2.2 2.1 1.8 0.6 1.0 1.7 1.1
Total Realised Gains 0.1 (0.0) (0.0) (0.1) 0.1 0.1 0.4 0.5
Operating Income 4.4 2.2 2.1 1.7 0.8 1.1 2.1 1.6
Total Other Income/ Expenses and provisions (0.1) (0.1) (0.1) (0.2) (0.0) (0.1) (0.4) (0.1)
Profit Before Tax 4.3 2.1 2.0 1.6 0.8 1.0 1.7 1.5
Tax Provision 1.3 0.7 0.5 0.5 - (0.2) 0.7 0.4
Profit After Tax 3.0 1.4 1.5 1.1 0.8 1.2 1.0 1.1
BALANCE SHEET - LIABILITIES Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Paid-up Capital 3.7 3.7 3.7 3.7 8.1 8.1 9.0 9.0
Fair Value Change Account (FCVA) (0.0) 0.0 (0.1) 0.0 (0.1) (0.1) (0.2) (0.0)
Total Reserves 3.8 5.2 6.3 7.5 (1.4) (0.3) 0.6 2.0
Reported Net Worth 7.5 8.9 10.0 11.2 6.6 7.8 9.7 11.1
Adjusted Net Worth (excl Fair Value Change) 7.5 8.9 10.1 11.1 6.7 7.9 9.9 11.1
Total Reserve for Unexpired Risk 5.3 6.3 7.9 6.9 8.1 9.5 11.4 11.1
Estimated Liability in Respect of Outstanding Claims 12.2 9.4 12.1 16.9 16.5 19.5 21.8 26.1
Total Technical Reserves 17.5 15.7 20.0 23.8 24.5 29.0 33.2 37.1
Subordinated debt - - - - - - - -
Total Current Liabilities 6.3 4.4 7.3 13.2 4.2 7.8 11.8 14.2
Total Liabilities 31.4 28.9 37.3 48.2 35.4 44.7 54.6 62.5
BALANCE SHEET - ASSETS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Total Loans - - - - - - - -
Total Investments 21.5 23.4 30.2 33.3 29.9 36.3 43.3 50.4
Cash & Bank Balances 1.4 0.6 0.8 0.7 1.1 0.6 2.1 0.6
Net Fixed Assets 0.4 0.4 0.4 0.3 0.2 0.2 0.2 0.4
Total Advances and Other Assets 8.0 4.5 5.8 13.8 4.1 7.6 9.0 11.1
Total Assets 31.4 28.9 37.3 48.2 35.4 44.7 54.6 62.5

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 Universal Sompo Future
KEY FINANCIAL INDICATORS Mar-18 Mar-19 Mar-20 Dec-20 Mar-18 Mar-19 Mar-20 Dec-20
Months 12 12 12 9 12 12 12 9
Insurance Profitability
Net Claims Incurred / NPE (Claims Ratio) 56.3% 70.4% 73.4% 81.4% 75.7% 68.8% 59.7% 68.1%
Management Expenses / NPE (Expense Ratio) 20.9% 19.3% 19.4% 16.3% 30.8% 33.8% 39.6% 38.5%
Net Commission Expenses / NPE -3.9% 4.9% 3.4% 3.5% 0.3% 4.3% 4.1% 3.5%
Combined Ratio (A) 73.2% 94.6% 96.3% 101.2% 106.8% 106.9% 103.3% 110.1%
Net Investment Income/NPE (B) 11.1% 14.2% 15.3% 15.4% 17.4% 16.8% 16.0% 16.5%
Operating Ratio (A-B) 62.2% 80.4% 81.0% 85.8% 89.3% 90.1% 87.3% 93.6%
Trading gains / NPE 1.1% -0.2% -0.1% -0.6% 1.1% 0.5% 1.8% 3.0%
Investment Income / NPE (including Realised Income) 12.2% 14.0% 15.2% 14.8% 18.6% 17.3% 17.9% 19.5%
Overall Profitability
Underwriting surplus (loss)/NPE 24.2% 3.4% 1.0% 0.4% -12.4% -10.4% -7.3% -9.4%
PAT/ Average Assets Deployed 10.8% 4.6% 4.6% 3.3% 2.4% 3.0% 2.0% 2.6%
PAT/ Total Asset Base 9.5% 4.7% 4.0% 3.0% 2.2% 2.6% 1.8% 2.3%
PAT/ Reported Net Worth 39.6% 15.3% 15.1% 12.8% 11.8% 15.1% 10.3% 13.2%
PAT/ Adjusted Net Worth 39.5% 15.3% 15.0% 12.8% 11.7% 14.9% 10.0% 13.2%
PBT/NPE 35.9% 16.5% 15.2% 13.8% 6.1% 6.5% 8.7% 9.3%
PAT / NPE 24.8% 10.9% 11.5% 9.3% 6.1% 7.5% 5.0% 6.8%
Capacity
NPW / Reported Net Worth 184.0% 151.9% 147.2% 125.6% 227.3% 220.1% 223.5% 190.4%
NPW / Adjusted Net Worth 183.5% 152.2% 146.2% 126.1% 225.2% 218.0% 218.2% 190.2%
Technical Reserves/Reported Net Worth 234.6% 176.5% 199.8% 213.4% 369.2% 370.8% 342.7% 335.1%
Technical Reserves /Adjusted Net Worth 233.9% 176.8% 198.4% 214.3% 365.9% 367.3% 334.7% 334.6%
Net Claims Incurred / Reported Net Worth 90.1% 99.1% 96.5% 111.6% 145.8% 138.5% 122.1% 131.9%
Net Claims Incurred / Adjusted Net Worth 89.9% 99.3% 95.8% 112.1% 144.5% 137.2% 119.2% 131.7%
Liquidity
Cash + Liquidi assets/ Technical Reserve 130.4% 153.5% 155.6% 143.0% 126.6% 127.3% 136.8% 137.2%
Technical Reserves/ Liquid Assets 76.7% 65.1% 64.3% 69.9% 79.0% 78.5% 73.1% 72.9%
FVCA / Tech Reserves -0.1% 0.1% -0.4% 0.2% -0.2% -0.3% -0.7% 0.0%
Solvency ratio 2.3 2.2 2.3 1.6 1.7 1.5 1.5 1.6

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ICRA LIMITED
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