NIA Accounting Ratio

8/8/2019 NIA Accounting Ratio

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Accounting Ratios

New India Insurance


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Brief History

Incorporated on July 23rd, 1919 Founded by the Houseof Tata Founder member - Sir Dorab Tata.

Nationalised in 1973 with merger of Indian companies

New India is a pioneer among the Indian Companies onvarious fronts, right from insuring the first domesticairlines in 1946 to satellite insurance in 1980

The latest addition to the list of firsts is the insuranceof the INSAT-2E

With a wide range of policies New India has becomeone of the largest non-life insurance companies, notonly in India, but also in the Afro-Asian region

Overseas operations commenced in 1920.


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Present Position

Gross Premium (in India) of Rs. 5017.20 crores in the year 2006-2007, as against

Rs. 4791.49crores in the year2005-2006

Assets Rs. 27444.57crores as on 31st March 2007

26 Regional Offices, 393 Divisional Offices, 614 Branches and 34 Direct Agent

Branches Rank No. 1 in the Indian market

First Indian non-life company to cross Rs. 5000 crores Gross Premium

Over-seas presence in countries like Japan, U.K, Middle East, Fiji and Australia

Operations in 24 countries in the year 2004-05

Network of 19 Branches, 12 Agencies, 2 Associate companies and 2 Subsidiary

companies in the year 2004-05

Overseas Premium of Rs. 892.35 crores in the year 2004-05, which accounts for

more than 80% of total overseas premium in India


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Strengths

Largest number of Offices - In India and Abroad Trained and technically qualified staff

1068 fully computerised offices across India

"A-" (Excellent) rating by A.M. Best & Co (Europe)

First domestic company to be rated by an International Rating Agency Rating based upon following

factors

Superior capital position Strong operating performance

Strong market position

Only company to develop significant International operations, long record of successful trading

outside India

First company to set up an Aviation Insurance Department in 1946.

First company to handle the Hull Insurance requirements of the Indian Shipping Fleet.

First company to establish its own Training School.

First company to introduce the concept of 'Model Office Training'.

First company to create department in Engineering insurance.

Pioneer in Satellite insurance


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Mapping Categories OfProducts With Customer

Segments In New India Assurance

Customer

segments

Personal Business Industrial Liability Social

Categories

of

Products

Accident

House

holders

Motor policyMoney

insurance

Road Safety

TV/VCR/VCP

Mobile

Jewellers

Shop

Marine

Aviation

Fire

Machine

breakdown

Burglary

Electronic

equipment

Public

liability policy

Products

Directors& Officers

Employers

Rural

Student

safety

Womenwelfare

Child welfare


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Segment 2008-2009

(In Crore)

2007-

2008

(In Crore)

2006-

2007

(In Crore)

2008-

2009

(In %)

2007-

2008

(In %)

2006-2007

(In %)

Total 6455.78 6151.45 5936.78 4.95 3.62 4.60

Marine 511.58 494.82 370.48 3.39 33.56 6.05

Fire 998.38 981.39 1164.57 1.73 -15.73 5.54

Motor 2425.36 2363.79 2369 2.6 -0.24 -4.32

Gross Premium Growth Rate:

((Gross Premium for the current year-Gross Premium for previous year)/Gross

Premium for the previous year )*100


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2.Gross Premium to Shareholder Fund Ratio:

(Gross Premium for current year/(Paid up capital + Free Reserve))

Particulars 2008-2009

(In Crore)

2007-2008

(In Crore)

2006-2007

(In Crore)

2008-

2009

(In %)

2007-

2008

(In %)

2006-

2007

(In %)

Gross

Premium

6455.78 6151.45 5936.78

0.93 1.03 1.26Share

Holders

Fund(begin

ning of the

year)

6972.80 5972.55 4706.87


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3.Growth Rate of Shareholders Fund:

(Shareholders fund at the current balance sheet/Shareholders fund at the

previous balance sheet)

Segment 2008-2009

(In Crore)

2007-2008

(In Crore)

2006-2007

(In Crore)

2008-

2009

(In %)

2007-

2008

(In %)

2006-

2007

(In %)

Total 7328 6972.80 5972.55 5.09 16.75 26.89


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4.Net Retention Ratio:

(Net Premium(previous Year)/Gross Premium(current year))

Segment 2008-2009

(In Crore)

2007-2008

(In Crore)

2006-2007

(In Crore)

2008-

2009

(In %)

2007-

2008

(In %)

2006-

2007

(In %)

Gross

Premium

6455.78 6151.45 4914.27 85.20 79.89 80.04

Net

Premium -

5500.31 4914.27

Marine Data to be Compared from Financial

Reports

46.46 46.84 50.90

Fire 103.98 90.45 90.41

Motor 86.98 81.87 82.14


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5)

Net Commission Ratio:(Commission net of Reinsurance for a class of business / Net Premium )

Segment 2008-2009

(In Crore)

2007-2008

(In Crore)

2006-2007

(In Crore)

2008-

2009

(In %)

2007-

2008

(In %)

2006-

2007

(In %)

Commissio

n Net

560.82 459.23 390.89 10.20 9.34 8.23

Premium

Net -

5500.31 4914.27

Marine 6.12 11.52 7.54

Fire 13.20 11.29 7.53

Motor 7.94 6.31 6.41


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Expenses of Management to

Gross Premium RatioParticulars 2008-2009

(In Crore)

2007-2008

(In Crore)

2006-2007

(In Crore)

2008-

2009

(In %)

2007-

2008

(In %)

2006-

2007

(In %)

Expense 1455.01 1019 1152 22.54 16.57 19.41

Gross

Premium

6455.78 6151.45 5936.78


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Claim Settlement Ratio

=No. of claims settled in the year/(outstanding claims + New Claims)


(In Crore)

2007-2008

(In Crore)

2006-2007

(In Crore)

2008-

2009

(In %)

2007-

2008

(In %)

2006-

2007

(In %)

Number of

Claims

Outstandin

g

367980 396249 384241

73.21 72.44 70.14Number of

Claims

Intimated

1028343 938923 942598

Number of

Claims

Settled

1022193 967192 930590


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Combined Ratio Particulars

=Total /Net Premium


(In Crore)

2007-2008

(In Crore)

2006-2007

(In Crore)

2008-

2009

(In %)

2007-

2008

(In %)

2006-

2007

(In %)

Claims 4671.87 4177.47 3643.61 121.59 115.09 109.14

Expense 1455.01 1019.10 1152.59

Commissio

n

560.83 459.23 390.89

Sub total 6687.71 5655.80 5186.5

Net

Premium

5500.31 4914.27 4751.77


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OperatingProfit Ratio


(In Crore)

2007-2008

(In Crore)

2006-2007

(In Crore)

2008-

2009

(In %)

2007-

2008

(In %)

2006-

2007

(In %)

Underwriti

ng Result

-1439.84 -844.39 -653.27 5.40 30.96 33.96

Investment

Income

1686.82 2344.62 2251.35

Others 50.24 21.23 15.85

Total 297.22 1521.46 1613.93

Net

Premium

5500.31 4914.28 4751.77


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Reinsurance Ratio

Par

ticular

sParticular 2008-2009

(In Crore)

2007-2008

(In Crore)

2006-2007

(In Crore)

2008-

2009

(In %)

2007-

2008

(In %)

2006-

2007

(In %)

Risk

Insured

(Premium)

2113.61 2098.95 1653.54 32.74 34.12 27.85

Gross

Premium

6455.78 6151.45 5936.78


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Solvency Margin-The amount of fund kept aside as ascertained by actuarial valuation .Therefore

Investment in Asset =Estimated Actuarial Liability Underwritten.

2008-09 2007-08 2006-07

Required solvency margin under IRDA Regulations (Global) 1491.65 1300.88 1327.70

Available Solvency margin (Global) 5083.48 5000.34 4735.68

Required solvency margin under IRDA Regulations (Indian) 1268.15 1106.26 1116.73

Available solvency margin (Indian) 5569.09 4425.25 5173.32

Solvency RatioAvailiable Solvency Margin/Required Solvency Margin

Particulars 2008-2009 2007-2008 2006-2007

Solvency

Ratio(Global)

3.41 3.84 3.57

Solvency

Ratio(India)

4.39 4.0018 4.63


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Schedule III-B

DETERMINATION OF SOLVENCY MARGINS

GENERAL INSURERS (Form KG)

Item

No

Description (Class

of business)

Gross

Premiums

Net

Premiums

Gross

Incurred

claims

Net

Incurred

Claims

RSM-1 RSM-2 RSM

1 Fire

Marine:

2 Marine Cargo

3 Marine Hull:

Miscellaneous:

4 Motor

5 Engineering

6 Aviation

7 Liability

8 Rural Insurance

12 TOTAL


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Solvency Margin

RSM-1 in the above table means Required

Solvency Margin based on net premiums, and shall

be determined as twenty per cent. of the amount

which is the higher of the Gross Premiums

multiplied by a Factor A as specified in the table

and the Net Premiums.

RSM-2 in the above table means Required

Solvency Margin based on net incurred claims, and

shall be determined as thirty per cent. of the

amount which is the higher of the Gross Net

Incurred Claims multiplied by a Factor B as

specified in the table and Net Incurred Claims.

Item

No

Description (Class of

business)

Factor

A

Factor

B

1 Fire 0.5 0.5

Marine:

2 Marine Cargo 0.7 0.7

3 Marine Hull: 0.5 0.5

Miscellaneous:

4 Motor 0.9 0.85

5 Engineering

0.5 0.5

6 Aviation 0.9 0.9

7 Liability 0.9 0.85

8 Rural Insurance 0.5 0.5

9 Others 0.7 0.7

10 Health 0.9 0.85


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PARAMETER THAT HELP COMPARE TWO COMPANIES

PERFORMANCE

There are two important parameters to give a relative

performance of one company with respect to the

other.


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Net Earning Ratio


(In Crore)

2007-2008

(In Crore)

2006-2007

(In Crore)

2008-

2009

(In %)

2007-

2008

(In %)

2006-

2007

(In %)

PAT 224.15 1401.13 1459.95 4.08 28.51 30.72

Net

Premium

5500.31 4914.28 4751.77


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Liquid Assets to Liabilities Ratio

Par

ticular

sParticulars 2008-2009

(In Crore)

2007-2008

(In Crore)

2006-2007

(In Crore)

2008-

2009

(In %)

2007-

2008

(In %)

2006-

2007

(In %)

Liquid

Asset

6455.78 6151.45 5408.24 86.99 74.92 65.72

Policy

Holders

Liability

9642.48 8712.89 8229.39

Documents

NIA Accounting Ratio