Reliance General insurance announced its FY24 results

24 September 2024

Reliance General Insurance Company Ltd. (RGICL) has displayed robust financial performance in FY24, underpinned by solid growth in its gross written premium (GWP). The company recorded a GWP of ₹11,829.68 Cr, marking a notable increase of 12.78% compared to the previous year’s ₹10,489.23 Cr. This growth aligns with the overall expansion in India’s non-life insurance market. Furthermore, RGICL’s net earned premium rose to ₹6,687.24 Cr from ₹6,022.42 Cr in FY23. While profit after tax (PAT) grew modestly by 3.54% to ₹280.27 Cr, the company's steady profitability showcases its ability to navigate an evolving industry landscape. However, a slight dip in profit before tax (PBT) from ₹415.18 Cr to ₹401.34 Cr highlights the challenge of balancing growth with cost pressures. Despite this, RGICL's investment portfolio exhibited an impressive 21% growth, with assets under management (AUM) increasing to ₹20,514 Cr, generating healthy returns of 7%.

Operationally, RGICL has maintained a strong market presence with a 4.76% share among general insurers, aligning its 13%(y-o-y) premium growth with industry averages. Key contributors to this growth include the retail and corporate business segments. The retail business, particularly the motor insurance segment, grew by 11.3%, while the health insurance sector saw a remarkable growth of 34%, reinforcing RGICL's focus on health products as a future growth engine. The corporate business also expanded by 16.9%, driven by a hybrid model combining direct corporate relationships and broker networks. Additionally, the company’s government business, which includes crop and mass health insurance, posted a steady 12.8% growth, further diversifying its portfolio.

Looking ahead, RGICL is well-positioned to capitalize on the untapped potential in India's non-life insurance sector, where insurance penetration remains low at 1% of GDP, compared to the global average of 4%. The company aligns itself with IRDAI’s “Insurance for All by 2047” vision, aiming to increase accessibility and awareness across the country. Furthermore, its robust reinsurance strategy—balancing proportional and non-proportional treaties—ensures financial stability and minimal volatility, helping the company manage large claims effectively. RGICL’s adoption of advanced risk management tools, including Catastrophic (CAT) modeling, further strengthens its ability to mitigate risks and protect its financial position.