Highlights:

The general insurance industry performance for the last year, the industry growth has seen normalization after the initial dip. During the quarter gone by, segments such as motor insurance saw steady sales from the new motor vehicle sales due to the need for personal mobility.

However, recent lockdown in some parts of the country has adversely impacted new motor vehicle sales.

The health insurance premium continued to show reasonable growth for the industry.

As far as commercial lines are concerned, the growth in the fire segment was elevated for the first three quarters and then tapered in the last quarter due to the base impact.

Marine and Engineering lines witnessed some pickup with increased movement of goods on resumption of economic activity in the second half of FY2021.

The general insurance industry registered a growth of 5.2% in FY2021 over the last year with the Industry GDPI moving up to Rs 198700 crore in FY2021 from Rs 188900 crore in FY2020.

The combined ratio for the industry was 110.4% in the 9MFY2021 as compared to 117.9% in 9MFY2020.

Further the overall combined ratio for private multi-line general insurance was 104.6% in the 9M FY2021 as compared to 106.5% in the 9M FY2020.

The digital platforms incubated by the company over the years continue to see enhanced adoption in recent times with over 97% of the policies issued by the company in the financial year ended 2021 being in paperless form.

With a well-diversified portfolio mix positions the company is positioned uniquely to take advantage over the trends that the company is witnessing currently.

The company have entered the fiscal 2022 with a strong capital position and strengthened reserves.

The company also look forward to integration with Bharti AXA post all approvals and the synergies to start playing out towards the later half of this year and more so the next financial year.

The company will continue to drive growth ahead of competition, especially in preferred segments.

The company is also continuously focusing on evolving strategies to further consolidate position in the GI space.

The Gross Direct Premium income of the company stood at Rs 14003 crore in FY2021 as compared to Rs 13313 crore in FY2020, a growth of 5.2%. This was largely in line with the industry growth of 5.2%.

In so far as the progress in relation to the scheme of arrangement with Bharti AXA is concerned, the company awaits the NCLT and IRDAI final approval in the matter. The expenses incurred of Rs 41 crore have been absorbed in the P&L during FY2021.

The combined ratio for FY2021 stood at 99.8% compared to 100.4% in a FY2020. Combined ratio for the Q4 FY2021 stood at 101.8% compared to 100.1% in Q4 FY2020.

Investment assets rose to Rs 30892 crore at end March 2021 as compared to Rs 29892 crore at end December 2020.

Investment leverage net of borrowings was 4.09x at end March 2021 as compared to 4.05x at end December 2020.

Investment income increased to Rs 2196 crore for FY2021 as compared to Rs 1847 crore in FY2020.

ROAE was 21.7% in FY2021 as compared to 20.8% in FY2020.

The ROAE was 18.8% for both the Q4FY2021 and Q4FY2020.

The company continues to stay focused on profitable growth and sustainable value creation.

Strategy continues to revolve around those five pillars of consistency in market leadership, diversified product-mix with multi-channel distribution network, excellence in claims service and technology, robust risk selection and strong investment returns on a diversified portfolio.

The company may recalibrate, but the effort will be in terms of continuing to gain market share.

For the full year in terms of the number of covid claims that has been intimated to the company is almost close to 50,000 claims and the amount of intimations that the company has seen is about Rs 376 crore.

The company will try to continue to deliver around 20% ROE. If motor third party price increase comes by June 2021, the company will be able to deliver consistent ROE.

Inspite of second wave of COVID, the company expects industry to achieve 12% to 15% growth in FY2022.