General Insurance Corporation of India

It gives me great pleasure in welcoming you to another eventful year for GIC Re.

As we reflect on the past year's journey, I am filled with a sense of gratitude for the collective efforts that have brought us to this point.

The year behind us was marked by both challenges and triumphs. The global landscape posed uncertainties which tested our resilience and adaptability to rise to the occasion. Despite these challenges, I am glad to announce that our company has not only weathered the storm but has also emerged stronger, more cohesive, and poised for continued success in the long run.

At the core of our achievements are our dedicated team members, who have exemplified unwavering commitment and determination for the Corporation. Their dedication has been the driving force behind our accomplishments, and I extend my deepest appreciation to each and every one of them. It is their passion, and collaborative spirit that make our company a centre of excellence.

In every field - be it the economy, science and technology or agriculture we have been steadily climbing the world rankings and have shown our mettle. I deem it my privilege to congratulate especially, our great scientists of ISRO who have once again raised our heads high by launching Chandrayan (Lunar Mission).

As we know in this changing world, geopolitical tensions continue to rise as the Russia-Ukraine conflict and Euro zone crisis have disrupted the global economic order. Food insecurity, inflation and climate concerns escalate. The global financial markets including (re)insurance are thus challenged - stability and growth are seemingly elusive as of now.

The 51st Anniversary of your Company is being observed with all joy and happiness that such a glorious event deserves, we are all indeed privileged to be a part of this incredible journey. While we celebrate the vision, entrepreneurial spirit and commitment of our Founders and Leaders, we take this opportunity to pay our humble homage to them.

We truly hope we have carried their charter forward and that we have been able to build on their noteworthy accomplishments to keep this great financial institution at the forefront of the nation's economic development index.

The gross direct premium underwritten by non-life insurance companies in India increased by 16.4% to Rs. 2.56 Lakh Crore in FY 2022-23 compared to Rs. 2.20 Lakh Crore in FY 2021-22.

Your company has booked Gross premium during Financial Year 2022-23 of Rs. 36,591.59 Crore. The underwriting loss is reduced for the Financial Year to Rs. 2,341.37 Crore as against Rs. 4,266.11 Crore in the previous year.

Profit before Tax for the Financial Year was Rs. 7,749.43 Crore as against Profit before Tax of Rs. 3,560.14 Crore during the previous year. Your company reported a Profit after Tax of Rs. 6,312.49 Crore for the Financial Year as against Profit after Tax of Rs. 2,005.74 Crore during the previous year.

I am pleased to inform that the investment performance of your company during Financial Year 2022-23 has been very encouraging. Your Company has a strong book value of Investments which grew by 11.41% to Rs. 86,175.41 Crore and the Fair Value increased by 9.81% to Rs. 117,568.94 Crore over the previous year. Income from investment (including Profit on Sale of investments) during the year stood at Rs. 10,593.99 Crore registering a growth of 10.8% over the previous year.

Your company has taken the opportunity of every correction in the Indices by purchasing top tier fundamentally strong scrips across sectors and booked profits with every rise in Indices. The yield on average level of investments stood at 12.2% as against 12.8% of the previous year, the decline due to lower realisations on sale of securities.

We are also upgrading our risk assessment processes towards the goal of underwriting profitability. GIC Re continued to maintain its eadership in the domestic market which contributed 69% of the premium income for Financial Year 2022-23.

Your company has a Net worth (including fair value of investments) of ?61,700 Crore and total assets Rs. 1,57,124 Crore, while the Solvency ratio increased to 2.61 as at 31.03.2023 from 1.96 as at 31.03.2022.

GIC has maintained its "stable" outlook for the global reinsurance on the back of positive pricing momentum along with market discipline. However, there remains risks associated with property catastrophe events, uncertainty around coronavirus-related losses and shrinking reserve release. The market hardening is likely to continue in the foreseeable future and take care of the lower investment income on the back of falling reinvestment rates.

Considering the evolving geo-political situation, India has a great opportunity to reap the benefit from the diversification of global supply chains. However, the last few years have exposed multinational firms to unprecedented risks due to global trade tensions, pandemic-induced supply chain disruptions, and the conflict in European territories.

India's GDP growth is expected to remain robust in FY24. GDP forecast for FY24 to be in the range of 6-6.8%. Economic growth will be boosted from the expansion of public digital platforms and measures to boost manufacturing output.

The life insurance premium registered YoY growth of 10.2 per cent in FY22, with new businesses contributing 45.5 per cent of the total premiums received by the life insurers.

During FY22, the gross direct premium of non-Life insurers (within and outside India) registered YoY growth of 10.8 per cent, primarily driven by health and motor segments.

The digitalisation reforms and the resulting efficiency gains in terms of greater formalisation, higher financial inclusion, and more economic opportunities will be the second most important driver of India's economic growth in the medium term.

Structural reforms such as the introduction of the Goods and Services Tax and the Insolvency and Bankruptcy Code enhanced the efficiency and transparency of the economy and ensured financial discipline and better compliance.

The Indian insurance industry is forecast to grow well during FY 23-24 owing to the pandemic and geopolitical crisis and its impact on global business.

With enabling policy frameworks, India presents itself as a credible destination for capital diversifying out of other countries. Thus, India's growth outlook seems better than in the pre-pandemic years, and the Indian economy is prepared to grow at its potential in the medium term.

Indian economy has also started benefiting from the efficiency gains resulting from greater formalisation, higher financial inclusion, and economic opportunities created by digital technology-based economic reforms.

Over the long term, we expect the insurance market in India to continue to expand and the insurance penetration and insurance density to continue to rise in tune with the continued growth of the Indian economy.

The overall scenario of the nation points to a robust growth and GIC Re will be endeavouring to consolidate its domestic presence, expand its share of business in the international market and will continue to position itself to cash in on the demand for enhanced reinsurance requirement arising especially in the developed markets.

I assure you that your company is fully prepared and energised to support the Indian and World insurance industry and will continue to focus on achieving underwriting surpluses in future. Profitable diversified growth will be our focus in the coming years.

I would like to take this opportunity to thank our customers, intermediaries, employees, and my fellow Board Members for their invaluable support in guiding the Company through turbulent times.

My special thanks to all our shareholders for the trust you have reposed in us. You remain an invaluable pillar of strength and I look forward to your continued support in our journey towards achieving higher levels of excellence.

Chairman and Managing Director