Royal Sundaram General Insurance Co. Limited (RSGICL) was incorporated on August 22, 2000 as a joint venture between the Sundaram Finance Limited and Ageas Insurance International N.V. It is a privately-owned general insurance company whose area of operation includes general insurance services across individuals as well as corporates.
Credit Rating- Royal Sundaram General Insurance Co. Limited has been assigned rating of AA+ with stable outlook by ICRA.
Parameters(billion) | FY20 | FY21 |
Net premium | 0.38 | 0.55 |
Net profit | 0.24 | 1.58 |
Net worth | 11.7 | 13.28 |
Combined ratio | 111.10% | 110.20% |
Operating Profit Ratio | 2.90% | 7.80% |
Net earnings ratio | 1.00% | 7.40% |
Solvency ratio(regulatory) | 1.69 | 1.87 |
ROE | 2.10% | 11.80% |
Strong Parentage- RSGICL is owned by Sundaram Finance Ltd, Ageas with 50% and 40% equity each as of 30th Sep 2020. �Sundaram Finance is a leading NBFC. Ageas is one of Europe�s top 20 insurance companies servicing 37 million customers in 14 countries across two continents. Consequently, RSGICL receives support in terms of managerial, financial and operation from them.
Rise in profitability- RSGICL�s net profit rose significantly to Rs 1.58 billion in FY21 from Rs 0.24 billion in FY20 driven by mainly by fire insurance segment. Consequently, operating profit ratio rose to 7.8% in FY21 from 2.9% in FY20 and net earning ratio increased to 7.4% in FY21 from 1% in FY20. In the same line, ROE rose to 11.8% from 2.1% during the above-mentioned time period.
Stable Combined ratio- The company�s combined ratio stood at 110.2% during FY21 from 111.1% during FY20.
Adequate Solvency ratio- RSGICL has been able to maintain adequate solvency which is above regulatory requirement of 1.5 times. As of 31st March 2021, its solvency ratio stood at 1.87 from 1.69 as of 31st March 2020.