Reliance General Insurance Unlisted Shares

Company Overview

Reliance General Insurance Ltd. (RGIC) is a prominent private general insurance company in India. Established in 2000, it's a subsidiary of Reliance Capital, which itself falls under the Reliance Anil Dhirubhai Ambani Group.

• Offers a wide array of insurance solutions across various sectors including motor, health, travel, home, marine, commercial, and industrial insurance
• Vast network of over 139 branches and 28,900 intermediaries
• They prioritize customer satisfaction by offering hassle-free claims processes and prompt assistance
• Known for introducing unique and customer-centric insurance products

Timeline

2000: Reliance General Insurance Company Limited was incorporated as a private limited company in India

2001: It received the license to conduct general insurance business in India from the IRDAI

2006: Launched its first insurance product exclusively for e-commerce sellers

2011: Entered into a bancassurance tie-up with IndusInd Bank to offer insurance products to the bank’s customers

2017: The company became a part of the Reliance Anil Dhirubhai Ambani Group

2018: Entered into a partnership with Paytm to provide insurance products to Paytm customers

Management

Mr. Rakesh Jain - Executive Director & CEO

• Member of the Institute of the Chartered Accountants of India
• Director - Corporate Centre & CFO at ICICI Lombard General Insurance Company Limited
• Work experience of over 20 years in leadership positions in corporate finance, risk management, underwriting, claims, broking and reinsurance functions

Mr. Rajendra Chitale - Chairman & Independent Director

• Bachelor’s degree in law from the University of Mumbai
• Fellow of the Institute of the Chartered Accountants of India
• The Managing Partner of M.P. Chitale & Co.

Premium By Segment

*Others include Public Liability, Employer’s Liability, Personal Accident, Aviation, Marine and Engineering

Acquisition of Reliance Capital

Reliance General Insurance was a 100% fully owned subsidiary of Reliance Capital. Reliance Capital is a financial services holding company with a presence in various sectors like insurance, investment, and asset reconstruction. Reliance Capital was under insolvency proceedings due to 40,000Cr debt issues.

The acquisition of Reliance Capital by IndusInd International Holdings Ltd (IIHL), a part of the Hinduja Group, is still ongoing as of today, April 2024. IIHL's bid has received approval from the National Company Law Tribunal and the Competition Commission of India. IIHL's winning resolution plan involves an upfront cash payment of Rs 9,650 crore along with Reliance Capital's existing cash balance of Rs 500 crore going to the lenders. The acquisition will give IIHL control over Reliance Capital's various financial services businesses.

Reliance General Insurance Company (RGICL) will be rechristened as IndusInd General Insurance Company.

Financial Insights

In Crs

Unaudited Financial Results For The Quarter Ended 30th June 2024

Please Find Attachment of the News in Economics Times https://drive.google.com/file/d/140Qq5S9kof6tC4hjyx1rxSjVQ5z0enVq/view?usp=drivesdk

Key Metrics

• RGIC has a higher Claims Settlement Ratio indicating they settle a larger portion of claims received. This could be a positive for customers but might also suggest higher claim volumes impacting profitability
• A Combined Ratio above 100% indicates underwriting losses, meaning expenses exceed premiums collected. RGIC's higher ratio suggests a greater challenge in profitability
• Lower Retention Ratio suggest that a small portion of the premiums is kept by the insurer after reinsurance and outwards brokerage
• A high solvency ratio indicates a stronger financial position and better ability to cover future claims
• A negative ratio for RGIC suggests they might be offering higher commissions to agents to boost sales, potentially impacting their profitability
• RGIC has a high growth rate in terms of premiums collected, suggesting they are acquiring new customers at a faster pace

Growth in Net Earned Premium 

There's a noticeable upward trend in net earned premium over the years, indicating that Reliance General Insurance has been experiencing growth in its revenue stream. The significant increase from 2020-21 to 2021-22 suggests that Reliance General Insurance have implemented successful strategies to expand its market presence.

Industry Outlook

The outlook for general insurance companies in India is positive, with a projected growth rate exceeding global averages.

• The industry is projected to grow at a CAGR of 7.1% between 2024 and 2028, exceeding the global average growth rate of around 2.4%
• India's insurance penetration rate is around 4.2%. This is low compared to the global average of 6.3%, indicating significant growth potential
• As per the General Insurance Council, the general insurance industry in India registered a growth of 16.22% in premiums during 2023-24
• InsurTech adoption is streamlining processes, making insurance more accessible and affordable, particularly in rural areas

Annual Report 2023-24

IndusInd General Annual Report 2022-23

IndusInd General Annual Report 2021-22

IndusInd General Annual Report 2020-21