Reliance General Insurance Company Ltd - Unlisted Shares
Fundamentals
- Current Price
- ₹605
- Market Cap
- ₹15,815.69 Cr
- ISIN
- INE124D01014
- Face Value
- ₹10
- P/E Ratio
- 56.44
- EPS
- ₹10.72
- P/B Ratio
- 4.96
- Book Value
- ₹122.0
- Debt / Equity Ratio
- 0.07
Key Financials
Profit & Loss
| Metric | FY2024 | FY2023 | FY2022 | FY2021 |
|---|
| Net Earned Premium | 6687.24 | 6022.43 | 5133.80 | 3661.11 |
| Growth % | 11.04% | 17.31% | 40.23% | 0 |
| Expenses | 1,554.34 | 2825.24 | 2381.28 | 1986.97 |
| Growth % | -44.98% | 18.64% | 19.84% | 0 |
| Operating Profit | 5132.90 | 3197.19 | 2752.52 | 1674.15 |
| Op. Profit Margin % | 76.76% | 53.09% | 53.62% | 45.73% |
| Other Income | 1553.03 | 1675.46 | 1459.96 | 1381.69 |
| Net Incurred Claims | 5420.94 | 4649.25 | 3979.98 | 2913.43 |
| Net Commision | 863.62 | -191.78 | -148.33 | -180.13 |
| Profit Before Tax | 401.37 | 415.18 | 380.83 | 322.54 |
| Tax | 121.09 | 144.48 | 138.55 | 114.43 |
| Tax % | 30.17% | 34.80% | 36.38% | 35.48% |
| Profit After Tax | 280.28 | 270.70 | 242.28 | 208.12 |
| Growth % | 3.54% | 11.73% | 16.42% | 0 |
| PAT % | 4.19% | 4.49% | 4.72% | 5.68% |
| Diluted EPS | 10.72 | 10.72 | 9.56 | 8.22 |
Company Financials
| Metric | FY2024 | FY2023 | FY2022 | FY2021 |
|---|
| Equity Share Capital | 264.83 | 252.07 | 251.81 | 251.55 |
| Reserves | 2923.45 | 2283.76 | 2100.97 | 1807.12 |
| Total Equity | 3,188 | 2,536 | 2,353 | 2,059 |
| Borrowings | 230.00 | 230.00 | 230.00 | 230.00 |
| Total Sources of Funds | 3418.28 | 2765.83 | 2582.77 | 2288.67 |
| Investments | 20513.67 | 16935.28 | 14506.36 | 13033.35 |
| Loans | 0.00 | 0.00 | 0.00 | 0.00 |
| Fixed Assets | 121.08 | 100.77 | 93.37 | 48.58 |
| Deferred Tax Asset | 37.27 | 37.27 | 37.27 | 37.27 |
| Cash and Bank Balances | 174.91 | 238.00 | 155.17 | 199.55 |
| Other Assets | 1987.20 | 3059.67 | 2501.36 | 2166.91 |
| Sub Total (A) | 2162.11 | 3297.67 | 2656.53 | 2366.46 |
| Current Liabilities | 16775.96 | 15027.34 | 12413.93 | 11248.80 |
| Provisions | 2639.89 | 2577.82 | 2296.82 | 1948.19 |
| Sub Total (B) | 19415.85 | 17605.16 | 14710.75 | 13196.99 |
| Net Current Assets (A-B) | -17253.74 | -14307.49 | -12054.23 | -10830.53 |
| Total Application of Funds | 3418.28 | 2765.83 | 2582.77 | 2288.67 |
Shareholding Pattern
- Promoters Holding Company- Indian
- 98.67%%
- Others- Employees
- 1.33%%
Strengths & Weaknesses
Strengths
- Experienced Leadership: RGICL, established in 2000, benefits from seasoned leadership under CEO Rakesh Jain, with extensive expertise in finance, risk management, and underwriting. Supported by a skilled team, including CFO Hemant Jain and CIO K Ramkumar, the management ensures stability and continuity, with key personnel associated for over a decade.
- Strong Business Profile: With a network of 127 branches and 7,401 employees (Dec 2023), RGICL has diversified its distribution channels, sourcing 41% of business directly and 39% through brokers. The company’s focus remains on motor and crop insurance, complemented by a growing health insurance segment contributing 17% of earned premiums in FY23.
- Geographical Diversification: RGICL maintains a broad presence across India, with the top five states accounting for 56.85% of gross premiums in 9MFY23. Maharashtra leads at 27.24%, followed by Karnataka and Rajasthan, highlighting a well-distributed market footprint.
- Moderate Financial Performance: RGICL’s GWP grew by 10% to ₹10,489 crore in FY23, supported by stable motor and crop businesses. Although underwriting losses persist, strong investment income and cost management contributed to a PAT of ₹270.69 crore in FY23 and ₹221.97 crore in 9MFY24.
- Sound Investment Portfolio: With an investment portfolio of ₹18,688 crore (Dec 2023), heavily weighted towards high-quality debt securities, RGICL ensures liquidity and financial stability. Low delinquency rates and a focus on G-Secs and AAA-rated instruments further enhance resilience.
Weaknesses
- Parent’s Weak Credit Profile: The financial struggles of parent company RCL (rated CARE D) have restricted RGICL’s access to growth capital. The ongoing stake sale process is critical for future equity infusion and solvency improvements, essential for sustaining growth
- Moderate Solvency Position: RGICL’s solvency ratio remains range-bound at 1.60x–1.65x, reflecting limited capital infusion. While a ₹200 crore equity injection in Q2FY24 offered temporary support, delays in resolving the parent’s stake sale continue to hinder long-term capital adequacy.
About Reliance General Insurance Company Ltd
Reliance General Insurance Company Limited is a prominent player in the Indian insurance sector, offering a wide range of general insurance products including motor, health, travel, home, and personal accident insurance.
Board of Directors
- Mr. Rajendra Chitale - Chairman & Independent Director
- Dr. Thomas Mathew - Independent Director
- Mrs.Chhaya Virani - Independent Director
- Mr. Aman Gudral - Nominee Director
- Mr. Rakesh Jain - Executive Director & CEO
Senior Management
- Mr. Rakesh Jain - CEO
- Mr. Hemant K Jain - CFO
- Mr. Sushil Sojitra - Company Secretary
