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Your Partner In Risk

Global Reinsurance SolutionsGlobal Reinsurance Solutions

GIC Re

General Insurance corporation of India

2

Vision & Mission

To be a Leading Global Reinsurance and Risk Solution Provider

Vision

Mission

Building long-term mutually beneficial relationship with business partnersPracticing fair business ethics and valuesApplying ‘state-of-the-art’ technology, processes including enterprise risk management and innovative solutionsDeveloping and retaining highly motivated professional team of employeesEnhancing profitability and financial strength befitting the global position

33

Core Values

Trust and mutual respect

Professional excellence

Integrity and transparency

Commitment

Responsive service

44

Global Reinsurance Solutions

Value Added Services

Help in designing reinsurance programme of insurance companies in India, SAARC Region & Africa

Emphasis on Customer Relationship Management• Offer Risk Rating Services• Conduct Training Programme for Indian & Foreign

Clients on Reinsurance, Risk Management & other Technical topics such as Aviation, Oil & Energy etc.

• EQ Modeling

55

Global reinsurer for Non Life and Life BusinessObligatory cessions from Indian General Insurers Retakaful business operations under guidance of the TASIS-Sharia Advisory Institution in India and a Sharia BoardLead / Participate in Excess of Loss programmes and proportional treaties of Indian Insurers as also international insurers/ ReinsurersFacultative support for traditional as well as new productsProviding substantial support to various Agricultural insurance Programmes of companies including weather based schemes Managing pools for Marine Hull, Terrorism and Motor Third Party Commercial VehiclesFounder Manager for FAIR Nat Cat PoolSetting up the Indian Nuclear Pool

Business Profile

6

Credit Rating

A – (Excellent) Financial Strength Rating by A M Best & Co.

AAA (In) Claims Paying Ability Rating by CARE

Ranked 14th among International Reinsurersby S & P

Ranked 16th among International Reinsurersby AM Best

Ranking

7

Accolade - Marine Insurance Award

8

Accolade – IT Initiative Award

9

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Overseas Branch Operations

Dubai London Kuala Lumpur

Operational from 1st

Jan, 2007Caters to the Middle East & North Africa

(MENA Region)

Operational from 1st

Jan, 2008Caters to UK, EU,

Caribbean and South America

Operational from 1st

Jan, 2011Caters to the ASEAN

Region

Experienced team in place to handle the operationsIntegrated operations with real time access into the centralized repository

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Overseas Operations

Moscow Office

A Representative Office

Tapping business from Russia and Former Soviet Union countries

Brazil

Holding ‘Eventual Reinsurer’ status in Brazil

Plans to upgrade to ‘Admitted Reinsurer’ Status

South Africa

Plans to establish presence in South Africa

Project “eThru”

Aimed at removing inefficiencies and inaccuracies in manual/ batch mode transactions between GIC Re and Business Associates, eThru was commissioned on 20.09.2011Two major intermediaries already using eThru platform and others are readying to join inWould reduce paper based transactions and enable seamless integration across the supply chainWould help to improve underwriting and claim decision making, speedy realisation of receivables and claim settlements

New Initiatives

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Greater emphasis on Training

Induction of specialist talent – Actuarial/ Engineering/

Legal

Performance Management System for all officers &

continued updation to bring in efficiency

New Pension Scheme implementation

Performance Linked Incentive Scheme

New Initiatives

HR

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New Initiatives

Develop a robust and dynamic risk governance structure including roles and responsibilities at various levelsUnderstand GIC Re’s risk profile, define the risk appetite, tolerance and limitsTo apportion risk appetite to business units to monitor and control riskEmbedding risk management in strategic/ business decisionsImprove compliance with corporate governance guidelines, practices and laws & regulationsProviding up-to-date information to the Board / Management level Enterprise Risk Management Committee (ERMC)

14

ERM

1515

Underwriting Guidelines and Philosophy

Fac business accepted giving due consideration to the Risk Profile, Price, Deductible, Capacity, Claims Experience and Accumulation

Conservative approach while writing business from Latin America, Caribbean & CAT Exposed countries

Purchased adequate area specific protection

Protections placed mostly with A rated securities (as against the requirement of BBB & above rated securities as per IRDA regulations)

16

The RMS Risk Linked Software is used for monitoring earthquake exposures in IndiaOverseas branch offices also utilised similar tools for Earthquake mapping Cresta zone-wiseIndian non-life insurance companies provide their aggregate exposures data vis-à-vis catastrophe risks to GIC Re. This is generated from their software systems developed and implemented to capture the exposure data On the basis of information received from all insurance companies, GIC Re evaluates its Catastrophe AccumulationAn MOU has been entered into with AIR Worldwide, a leading CAT modeling software provider, to analyze GIC Re’s domestic exposures due to cyclones

Underwriting Guidelines and Philosophy

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Business Performance – 2010-11

ROE:2009-10 : 1 US$ = ` 44.802010-11 : 1 US$ = ` 44.52

US$ Mln2009-10 2010-11

Gross Premium 2,173 2,624

Net Premium 1,959 2,361

Incurred Claims 1,530 1,938

% of Net Premium 78.12% 82.05%

PAT 396 232

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Total(Domestic & Foreign)

Net Premium 2010-11

Domestic Foreign

1919

Financials

US$ MlnUS$ Mln

2020

Premium

US$ MlnUS$ Mln

Net Earned Premium (Domestic + Foreign) Class Wise 2010-11

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2222

Financials as at 31.03.2011

Capital Adequacy & Optimisation

ROE:2009-10: 1 US$ = ` 44.802010-11: 1 US$ = ` 44.52

Heads 2009-10 2010-11 2009-10 2010-11

INR MlnGrowth

US$ Mln

Paid up Capital 4,300 4,300 - 96 97

Free Reserves 85,966 93,902 9.23% 1,919 2,109

Net worth 91,333 99,260 8.68% 2,039 2,230

Tech. Reserves 137,526 166,370 20.97% 3,070 3,737

Investments 335,739 366,925 9.29% 7,494 8,242

Total Assets 438,421 497,286 13.43% 9,786 11,170

2323

Global Solvency Margin and Ratio as on 31.03.2011

As against the mandatory solvency margin of 1.5 times GIC Re has 3.35 times

GIC Re is adequately capitalized

Item Description 2008-09 2009-10 2010-11

1 Total Balance Available in Shareholders` fund 1368.58 1807.25 2013.21

2 Required Solvency Margin 372.40 486.58 600.99

3 Solvency Ratio 3.67 3.71 3.35

US$ MlnUS$ Mln

2424

GOI, the owners, have mandated a Dividend Payout policy of 20% of PAT or 20% of Share Capital whichever is higher

GIC Re aims to maintain 20% dividend payout on PAT and increase the reserve strength to support future growth plans

Dividend paid during last five years are as follows :

Capitalization Review & Dividend Policy

2006-07 2007-08 2008-09 2009-10 2010-11Share Capital (INR Mln) 4,300 4,300 4,300 4,300 4,300

Share Capital (US$ Mln) 100 108 84 96 97

Dividend % 72 46 65 82 48

Productivity & Per Employee Profit

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2009-10 2010-11 30.09.2011 (Annualised)

Productivity per Employee 4.34 5.94 6.44

Profitability per Employee 0.58 0.60 0.61

US$ MlnUS$ Mln

GIC Re’s Business with Lloyds - 2010-11

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Inward Premium form Lloyds

Retro Premium to Lloyds Net Premium

24.45 53.87 -29.32

US$ MlnUS$ Mln

Business Partners- Lloyds: 2010-11

Sr. No. Name of Syndicate Sr. No. Name of Syndicate1 A Taylor Esq Synd No 51 19 Lloyds Syndicate - Cathedral2 Advent Syndicate 780 20 Lloyds Syndicate - 22433 Aegis Syndicate 1225 21 Lloyds Syndicate 10364 Antares Syndicate 1274 22 Lloyds Syndicate 1084 - Chaucer5 Ark Syndicate 4020 23 Lloyds Syndicate 1183 6 Asia Marine Syndicate 1965 24 Lloyds Syndicate 1209 Xl7 Atrium Syndicate No 609 25 Lloyds Syndicate 1221 S L Thomas8 Barbican Syndicate 1955 26 Lloyds Syndicate 1861 Cgu 9 D E Hope Synd 1009 27 Lloyds Syndicate 1910-Arrow Synd.

10 Ed Syndicate 5555 28 Lloyds Syndicate 33 Hiscox11 Faraday 435 29 Lloyds Syndicate 566 Stn12 Hiscox Syndicates Limited 30 Lloyds Syndicate 9236/Atr Atrium13 J.H. Philips & Ors. Lloyds Syndicat 31 Lloyds Syndicate 994 Sim14 Kiln Catastrophe Syndicate No. 557 32 Lloyds Syndicate Aml 200115 Kiln Mathers Syndicate No. 807 33 Lloyds Syndicate Canopius 444416 Liberty Syndicate 4472 34 Lloyds Syndicate Cvs 191917 Lloyd Tunisien 35 Lloyds Syndicate Hdu 382018 Lloyds Synd. 5151 36 Lloyds Syndicate Hgj 0205

Sr. No. Name of Syndicate Sr. No. Name of Syndicate37 Lloyds Syndicate Hyl 2121 55 Lloyds Syndicate Pwh 382 38 Lloyds Syndicate Irk 0626 56 Lloyds Syndicate Sam 072739 Lloyds Syndicate Kcs 0557 57 Lloyds Syndicate Sam 0807 40 Lloyds Syndicate Kln 0510 58 Lloyds Syndicate Sjc 200341 Lloyds Syndicate Msp 0318 59 Lloyds Syndicate Wel No.202042 Lloyds Syndicate No 1206 Sagicor 60 Lloyds U/W Syndicat 1036 43 Lloyds Syndicate No 1400 61 Lloyds U/W Syndicate 570 44 Lloyds Syndicate No 2003 Catlin 62 Lloyds Underwriter Syndicate No 60945 Lloyds Syndicate No 2623 63 Lloyds-Cathedral Mmx 201046 Lloyds Syndicate No 2987 64 M S F Pritchars Lloyds Syd No.31847 Lloyds Syndicate No Aes 1225 65 Millennium Cons 9129 48 Lloyds Syndicate No. 2003 66 Omega Syndicate 95849 Lloyds Syndicate No. 1183 67 Pembroke Lloyds 400050 Lloyds Syndicate No. 1414 68 Qbe Re (Europe) Syndicate 56651 Lloyds Syndicate No. 2147 69 R.J. Merritt Syndicate Lloyds 52 Lloyds Syndicate No. 457 70 R.J.Kiln Synd 51053 Lloyds Syndicate No. 623 71 Rfh Wilshaw Synd 807 / Sd Mathers54 Lloyds Syndicate No. 2003 72 Travellers 5000, Lloyds Syndicate

Business Partners- Lloyds: 2010-11