The segment-wise Net Retention ratios of Non-Life Insurance companies from 2014-15 to 2023-24 have consistently stayed above 35% across all categories, except for Fire, Engineering, Marine Hull, and Aviation.

Chart 5.2.1aNet Retention Ratios - Fire,Engineering and Marine Cargo

Source: Council Compilation as per source data submitted by companies

Chart 5.2.1bNet Retention Ratios - Motor OD, Motor TP

Source: Council Compilation as per source data submitted by companies

Chart 5.2.1cNet Retention Ratios - Health, Personal Accident, Liability, Other Miscellaneous

Source: Council Compilation as per source data submitted by companies

Chart 5.2.1dNet Retention % (Marine Hull and Aviation)

Source: Council Compilation as per source data submitted by companies

Prudent Capital Leverage

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.

The Non-life industry has exercised caution in its capital leverage, with the Gross Written Premium being approximately 2.88 times the Capital and Free Reserves (Net Worth). Based on Net Premium, it stands at 2.12 times the capital as of 31st March 2024.

Note: Capital employed denotes paid up capital and free reserves including carried forward losses from the financial year 2021 onwards.

Chart 5.2.2Prudent Capital Leverage (Gross and Net Premium)

Source: Council Compilation as per source data submitted by companies