{"id":189,"date":"2019-07-23T08:01:04","date_gmt":"2019-07-23T08:01:04","guid":{"rendered":"http:\/\/localhost\/yearbook\/?page_id=189"},"modified":"2024-01-31T16:15:37","modified_gmt":"2024-01-31T16:15:37","slug":"return-on-capital-employed-roce","status":"publish","type":"page","link":"https:\/\/www.gicouncil.in\/yearbook\/2022-23\/indian-non-life-insurance-industry-analysis\/section-03-industry-business-highlights\/return-on-capital-employed-roce\/","title":{"rendered":"3.16 &#8211; Return on Capital Employed (RoCE)"},"content":{"rendered":"\n<p>RoCE (Return on capital employed) has been fluctuating over the period 2013-2023 due to the following reasons:<br>deteriorating claims ratios in Personal lines, effect of natural disasters over the past 5-6 years, effect of accumulations in individual portfolios and effect of the covid pandemic on health insurance claims especially after the second wave in 2020-21. Despite increase in Motor TP rates and rise in shareholder investment incomes, the return on capital employed measured (by Profit after tax\/Capital &amp; Free Reserves) was \u20132.16% in 2022-23 as compared to 4.4% in 2021-22. This reflects the competitive environment in which the Indian Non-life industry operates.<\/p>\n\n\n<h3 class=\"section-title\" style=\"font-size: 17px;\"><span style=\"background: #f6a192;border-radius: 8px;color: #fff;padding: 5px;font-size: 14px; margin-right: 10px;\"> Chart 3.16.1<\/span>Return on Capital Employed - 10- Year Trend<\/h3><div id=\"Chart_57\"><\/div><script type=\"text\/javascript\">\n                    jQuery(document).ready(function () {\n                        dual_axis_column_line_chart(\"Chart_57\", {\"data\":{\"Profits after Tax\":{\"2013-14\":4645,\"2014-15\":4848,\"2015-16\":3240,\"2016-17\":792,\"2017-18\":6909,\"2018-19\":683,\"2019-20\":-1403,\"2020-21\":3869,\"2021-22\":3869,\"2022-23\":-1949},\"RoCE (%)\":{\"2013-14\":10.9,\"2014-15\":9.9,\"2015-16\":6.2,\"2016-17\":1.4,\"2017-18\":10.8,\"2018-19\":1,\"2019-20\":-1.8,\"2020-21\":4.97,\"2021-22\":4.4,\"2022-23\":-2.16}},\"Title\":\"Return on Capital Employed - 10- Year Trend\",\"xTitle\":\"Year\",\"yTitle\":\"RoCE (%)\",\"zTitle\":\"\\u20b9 In Crores\",\"xAxisData\":{\"2013-14\":\"2013-14\",\"2014-15\":\"2014-15\",\"2015-16\":\"2015-16\",\"2016-17\":\"2016-17\",\"2017-18\":\"2017-18\",\"2018-19\":\"2018-19\",\"2019-20\":\"2019-20\",\"2020-21\":\"2020-21\",\"2021-22\":\"2021-22\",\"2022-23\":\"2022-23\"},\"yAxisData\":{\"Profits after Tax\":{\"2013-14\":4645,\"2014-15\":4848,\"2015-16\":3240,\"2016-17\":792,\"2017-18\":6909,\"2018-19\":683,\"2019-20\":-1403,\"2020-21\":3869,\"2021-22\":3869,\"2022-23\":-1949}},\"zAxisData\":{\"RoCE (%)\":{\"2013-14\":10.9,\"2014-15\":9.9,\"2015-16\":6.2,\"2016-17\":1.4,\"2017-18\":10.8,\"2018-19\":1,\"2019-20\":-1.8,\"2020-21\":4.97,\"2021-22\":4.4,\"2022-23\":-2.16}},\"colorCodes\":[\"#7030a0\",\"#d766fa\"]});\n                    });\n                <\/script>\n\n\n\n<p class=\"has-text-align-right has-small-font-size\">  <em><strong>Source<\/strong>: Council Compilation<\/em> <em>as per source <\/em><br><em>data submitted by companies<\/em> <\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Note: From the FY 2020-21 onwards capital &amp; free reserves include the carry forward losses of insurance companies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>RoCE (Return on capital employed) has been fluctuating over the period 2013-2023 due to the following reasons:deteriorating claims ratios in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":529,"menu_order":16,"comment_status":"closed","ping_status":"closed","template":"page-templates\/full-width.php","meta":[],"_links":{"self":[{"href":"https:\/\/www.gicouncil.in\/yearbook\/2022-23\/wp-json\/wp\/v2\/pages\/189"}],"collection":[{"href":"https:\/\/www.gicouncil.in\/yearbook\/2022-23\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.gicouncil.in\/yearbook\/2022-23\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.gicouncil.in\/yearbook\/2022-23\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gicouncil.in\/yearbook\/2022-23\/wp-json\/wp\/v2\/comments?post=189"}],"version-history":[{"count":18,"href":"https:\/\/www.gicouncil.in\/yearbook\/2022-23\/wp-json\/wp\/v2\/pages\/189\/revisions"}],"predecessor-version":[{"id":3657,"href":"https:\/\/www.gicouncil.in\/yearbook\/2022-23\/wp-json\/wp\/v2\/pages\/189\/revisions\/3657"}],"up":[{"embeddable":true,"href":"https:\/\/www.gicouncil.in\/yearbook\/2022-23\/wp-json\/wp\/v2\/pages\/529"}],"wp:attachment":[{"href":"https:\/\/www.gicouncil.in\/yearbook\/2022-23\/wp-json\/wp\/v2\/media?parent=189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<script>
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