{"id":2454,"date":"2022-01-23T14:04:45","date_gmt":"2022-01-23T14:04:45","guid":{"rendered":"http:\/\/20.204.15.179\/yearbook\/?page_id=2454"},"modified":"2022-02-18T02:32:56","modified_gmt":"2022-02-18T02:32:56","slug":"net-retention-ratios-and-capital-leverage","status":"publish","type":"page","link":"https:\/\/www.gicouncil.in\/yearbook\/2020-21\/indian-non-life-insurance-industry-analysis\/reinsurance\/net-retention-ratios-and-capital-leverage\/","title":{"rendered":"Net Retention Ratios and Capital Leverage"},"content":{"rendered":"\n

<\/p>\n\n\n\n

The segment wise Net Retention ratios of Non-Life Insurance companies during the period 2011-12 to 2020-21 have consistently remained above 45% for all classes other than Marine Hull, Aviation and Other Miscellaneous<\/strong><\/p>\n\n\n\n

Chart 6.2.1a<\/span>Net Retention Ratios – \nFire, Engineering and Marine Cargo<\/h3>\n\n\n\n
\"\"<\/figure>\n\n\n\n

Source<\/strong>: Council Compilation<\/em><\/p>\n\n\n\n

<\/p>

<\/cite><\/blockquote>\n\n\n\n

Chart 6.2.1b<\/span>Net Retention Ratios – Motor OD, Motor TP<\/h3>\n\n\n\n
\"\"<\/figure>\n\n\n\n

Source<\/strong>: Council Compilation<\/em><\/p>\n\n\n\n

<\/p>

<\/cite><\/blockquote>\n\n\n\n

Chart 6.2.1c<\/span>Net Retention Ratios – Health, Personal Accident, Liability, Other Miscellaneous<\/h3>\n\n\n\n
\"\"<\/figure>\n\n\n\n

Source<\/strong>: Council Compilation<\/em><\/p>\n\n\n\n

<\/p>

<\/cite><\/blockquote>\n\n\n\n

Chart 6.2.1d<\/span>Net Retention % (Marine Hull and Aviation)<\/h3>\n\n\n\n
\"\"<\/figure>\n\n\n\n

Source<\/strong>: Council Compilation<\/em><\/p>\n\n\n\n

<\/p>

<\/cite><\/blockquote>\n\n\n\n

Prudent Capital Leverage<\/h4>\n\n\n\n

<\/p>\n\n\n\n

The Capital Leverage ratio indicates the extent to which the Capital Employed(defined as equity and free reserves) is leveraged for domestic insurance business. The Capital Leverage ratio is calculated for both the Gross Premium (GWP\/Capital employed) and Net Premium(NWP\/Capital employed)levels.<\/p>\n\n\n\n

The Non-life industry has been prudent in its Capital Leverage as Gross Written Premium is almost 2.32 times the Capital and Free Reserves (Net Worth). On Net Premium basis , it is 1.65 times the capitalas on March 2021.<\/p>\n\n\n\n

Note: <\/strong>Capital employed denotes paid up capital and free reserves.<\/p>\n\n\n\n

Chart 6.2.2<\/span>Prudent Capital Leverage (Gross and Net Premium)<\/h3>\n\n\n\n
\"\"<\/figure>\n\n\n\n

Source<\/strong>: Council Compilation<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The segment wise Net Retention ratios of Non-Life Insurance companies during the period 2011-12 to 2020-21 have consistently remained above […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":296,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/www.gicouncil.in\/yearbook\/2020-21\/wp-json\/wp\/v2\/pages\/2454"}],"collection":[{"href":"https:\/\/www.gicouncil.in\/yearbook\/2020-21\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.gicouncil.in\/yearbook\/2020-21\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.gicouncil.in\/yearbook\/2020-21\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gicouncil.in\/yearbook\/2020-21\/wp-json\/wp\/v2\/comments?post=2454"}],"version-history":[{"count":21,"href":"https:\/\/www.gicouncil.in\/yearbook\/2020-21\/wp-json\/wp\/v2\/pages\/2454\/revisions"}],"predecessor-version":[{"id":2741,"href":"https:\/\/www.gicouncil.in\/yearbook\/2020-21\/wp-json\/wp\/v2\/pages\/2454\/revisions\/2741"}],"up":[{"embeddable":true,"href":"https:\/\/www.gicouncil.in\/yearbook\/2020-21\/wp-json\/wp\/v2\/pages\/296"}],"wp:attachment":[{"href":"https:\/\/www.gicouncil.in\/yearbook\/2020-21\/wp-json\/wp\/v2\/media?parent=2454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}