{"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":"2025-01-30T09:34:57","modified_gmt":"2025-01-30T09:34:57","slug":"net-retention-ratios-and-capital-leverage","status":"publish","type":"page","link":"https:\/\/yearbook.websitestage.org\/?page_id=2454","title":{"rendered":"Net Retention Ratios and Capital Leverage"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>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.<\/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 5.2.1a<\/span>Net Retention Ratios - Fire,Engineering and Marine Cargo<\/h3><div id=\"Chart_310\"><\/div><script type=\"text\/javascript\">\n                    jQuery(document).ready(function () {\n                        basic_column_chart(\"Chart_310\", {\"orientation\":\"false\",\"unit\":\"\",\"data\":{\"2014-15\":{\"Fire\":48.5,\"Engineering\":48.1,\"Marine Cargo\":73.6},\"2015-16\":{\"Fire\":49.3,\"Engineering\":48.3,\"Marine Cargo\":73.2},\"2016-17\":{\"Fire\":44.9,\"Engineering\":47.2,\"Marine Cargo\":70.9},\"2017-18\":{\"Fire\":38.5,\"Engineering\":49.2,\"Marine Cargo\":69.3},\"2018-19\":{\"Fire\":39.3,\"Engineering\":46.5,\"Marine Cargo\":67.9},\"2019-20\":{\"Fire\":36.7,\"Engineering\":43.5,\"Marine Cargo\":62.9},\"2020-21\":{\"Fire\":36.3,\"Engineering\":40.8,\"Marine Cargo\":67.4},\"2021-22\":{\"Fire\":34.8,\"Engineering\":38.5,\"Marine Cargo\":68.3},\"2022-23\":{\"Fire\":32.5,\"Engineering\":38.2,\"Marine Cargo\":64.5},\"2023-24\":{\"Fire\":29.6,\"Engineering\":32.8,\"Marine Cargo\":69.1}},\"Title\":\"Net Retention Ratios - Fire,Engineering and Marine Cargo\",\"xTitle\":\"Line of Business\",\"yTitle\":\"Net Retention (%)\",\"yAxisData\":{\"Fire\":\"Fire\",\"Engineering\":\"Engineering\",\"Marine Cargo\":\"Marine Cargo\"},\"colorCodes\":[\"#321547\",\"#2f0365\",\" #410a70\",\" #4e1270\",\" #7030a0\",\" #b10bf3\",\" #c240f6\",\"#cd81eb\",\"#de9efa\",\"#f5a0fe\"]});\n                    });\n                <\/script>\n\n\n\n<p class=\"has-text-align-right has-small-font-size\"> <em><strong>Source<\/strong>: <em>Council Compilation as per source data submitted by companies<\/em><\/em><\/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 5.2.1b<\/span>Net Retention Ratios - Motor OD, Motor TP<\/h3><div id=\"Chart_311\"><\/div><script type=\"text\/javascript\">\n                    jQuery(document).ready(function () {\n                        basic_column_chart(\"Chart_311\", {\"orientation\":\"false\",\"unit\":\"\",\"data\":{\"2014-15\":{\"Motor OD\":90.4,\"Motor TP\":91.8},\"2015-16\":{\"Motor OD\":90.1,\"Motor TP\":92.4},\"2016-17\":{\"Motor OD\":86.8,\"Motor TP\":89.7},\"2017-18\":{\"Motor OD\":87.6,\"Motor TP\":87.6},\"2018-19\":{\"Motor OD\":84.7,\"Motor TP\":90.3},\"2019-20\":{\"Motor OD\":81.9,\"Motor TP\":88.7},\"2020-21\":{\"Motor OD\":86.1,\"Motor TP\":88.4},\"2021-22\":{\"Motor OD\":84.5,\"Motor TP\":90.1},\"2022-23\":{\"Motor OD\":82.6,\"Motor TP\":90},\"2023-24\":{\"Motor OD\":83,\"Motor TP\":90.6}},\"Title\":\"Net Retention Ratios - Motor OD, Motor TP\",\"xTitle\":\"Line of Business\",\"yTitle\":\"Net Retention (%)\",\"yAxisData\":{\"Motor OD\":\"Motor OD\",\"Motor TP\":\"Motor TP\"},\"colorCodes\":[\"#570705\",\" #631209\",\" #760000\",\" #a1190b\",\" #ac1f10\",\" #bf260d\",\" #ea2d00\",\" #f14e3d\",\" #f86a4e\",\" #fa8c76\"]});\n                    });\n                <\/script>\n\n\n\n<p class=\"has-text-align-right has-small-font-size\"> <em><strong>Source<\/strong>: <em>Council Compilation as per source data submitted by companies<\/em><\/em><\/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 5.2.1c<\/span>Net Retention Ratios - Health, Personal Accident, Liability, Other Miscellaneous<\/h3><div id=\"Chart_312\"><\/div><script type=\"text\/javascript\">\n                    jQuery(document).ready(function () {\n                        basic_column_chart(\"Chart_312\", {\"orientation\":\"false\",\"unit\":\"\",\"data\":{\"2014-15\":{\"Health\":90.8,\"Personal accident\":86.9,\"Liability\":69.8,\"Other Misc\":57.5},\"2015-16\":{\"Health\":89.6,\"Personal accident\":84.1,\"Liability\":63.7,\"Other Misc\":59.4},\"2016-17\":{\"Health\":85.2,\"Personal accident\":83.4,\"Liability\":62.8,\"Other Misc\":32.3},\"2017-18\":{\"Health\":79.8,\"Personal accident\":83.8,\"Liability\":62.5,\"Other Misc\":32.8},\"2018-19\":{\"Health\":79.8,\"Personal accident\":82,\"Liability\":59.6,\"Other Misc\":30.3},\"2019-20\":{\"Health\":80.1,\"Personal accident\":83.9,\"Liability\":57,\"Other Misc\":28.7},\"2020-21\":{\"Health\":85.2,\"Personal accident\":80.5,\"Liability\":54.7,\"Other Misc\":45.1},\"2021-22\":{\"Health\":86.2,\"Personal accident\":73.9,\"Liability\":55.6,\"Other Misc\":45.3},\"2022-23\":{\"Health\":87.9,\"Personal accident\":78.9,\"Liability\":52.1,\"Other Misc\":42.5},\"2023-24\":{\"Health\":85.3,\"Personal accident\":75.9,\"Liability\":48.2,\"Other Misc\":53}},\"Title\":\"Net Retention Ratios - Health, Personal Accident, Liability, Other Miscellaneous\",\"xTitle\":\"Line of Business\",\"yTitle\":\"Net Retention (%)\",\"yAxisData\":{\"Health\":\"Health\",\"Personal accident\":\"Personal accident\",\"Liability\":\"Liability\",\"Other Misc\":\"Other Misc\"},\"colorCodes\":[\"#EFD0FC\",\"#E1A4FA\",\"#D19EFC\",\"#A885EF\",\"#AA7DF3\",\"#7454DA\",\"#9843E5\",\"#7030A0\",\"#3F0E5A\",\"#002060\"]});\n                    });\n                <\/script>\n\n\n\n<p class=\"has-text-align-right has-small-font-size\"> <em><strong>Source<\/strong>: <em>Council Compilation as per source data submitted by companies<\/em><\/em><\/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 5.2.1d<\/span>Net Retention % (Marine Hull and Aviation)<\/h3><div id=\"Chart_313\" class=\"chart-div\"><\/div><script type=\"text\/javascript\">\n                    jQuery(document).ready(function () {\n                        multiline_chart(\"Chart_313\", {\"unit\":\"\",\"data\":{\"Marine Hull\":{\"2014-15\":\"31.0\",\"2015-16\":\"25.9\",\"2016-17\":\"16.7\",\"2017-18\":\"25.1\",\"2018-19\":\"23.2\",\"2019-20\":\"26.0\",\"2020-21\":\"24.0\",\"2021-22\":\"27.4\",\"2022-23\":\"31.2\",\"2023-24\":\"30.2\"},\"Aviation\":{\"2014-15\":\"24.3\",\"2015-16\":\"23.6\",\"2016-17\":\"57.4\",\"2017-18\":\"31.0\",\"2018-19\":\"31.1\",\"2019-20\":\"42.0\",\"2020-21\":\"35.0\",\"2021-22\":\"30.3\",\"2022-23\":\"29.7\",\"2023-24\":\"28.2\"}},\"Title\":\"Net Retention % (Marine Hull and Aviation)\",\"xTitle\":\"Year\",\"yTitle\":\"Net Retention (%)\",\"yAxisData\":{\"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\",\"2023-24\":\"2023-24\"},\"colorCodes\":[\"#7e8ac5\",\"#002060\"]});\n                    });\n                <\/script>\n\n\n\n<p class=\"has-text-align-right has-small-font-size\"> <em><strong>Source<\/strong>: <em>Council Compilation as per source data submitted by companies<\/em><\/em><\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p><\/p>\n<cite><br><br><\/cite><\/blockquote>\n\n\n\n<h4 class=\"wp-block-heading\">Prudent Capital Leverage<\/h4>\n\n\n\n<p><\/p>\n\n\n\n<p>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<p>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.<\/p>\n\n\n\n<p>Note:<strong> <\/strong>Capital employed denotes paid up capital and free reserves including carried forward losses from the financial year 2021 onwards.<\/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 5.2.2<\/span>Prudent Capital Leverage (Gross and Net Premium)<\/h3><div id=\"Chart_315\"><\/div><script type=\"text\/javascript\">\n                    jQuery(document).ready(function () {\n                        dual_axis_combine_column_line_chart(\"Chart_315\", {\"data\":{\"Capital Employed\":{\"2014-15\":48774,\"2015-16\":52579,\"2016-17\":55167,\"2017-18\":63959,\"2018-19\":68196,\"2019-20\":77420,\"2020-21\":77895,\"2021-22\":88020,\"2022-23\":90133,\"2023-24\":104279}},\"Title\":\"Prudent Capital Leverage (Gross and Net Premium)\",\"xTitle\":\"Year\",\"yTitle\":\"\\u20b9 In Crores\",\"zTitle\":\"GWP\\\/CAP and NWP\\\/CAP\",\"xAxisData\":{\"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\",\"2023-24\":\"2023-24\"},\"lineData\":{\"GWP\\\/CAP\":{\"2014-15\":1.85,\"2015-16\":1.95,\"2016-17\":2.43,\"2017-18\":2.45,\"2018-19\":2.58,\"2019-20\":2.52,\"2020-21\":2.66,\"2021-22\":2.61,\"2022-23\":2.96,\"2023-24\":2.88},\"NWP\\\/CAP\":{\"2014-15\":1.46,\"2015-16\":1.55,\"2016-17\":1.71,\"2017-18\":1.68,\"2018-19\":1.77,\"2019-20\":1.68,\"2020-21\":1.89,\"2021-22\":1.88,\"2022-23\":2.14,\"2023-24\":2.12}},\"colorCodes\":[\"#7e8ac5\",\"#002060\",\"#0070c0\"],\"colorLine\":[\"#002060\",\"#0070c0\"]});\n                    });\n                <\/script>\n\n\n\n<p class=\"has-text-align-right has-small-font-size\"> <em><strong>Source<\/strong>: <em>Council Compilation as per source data submitted by companies<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The segment-wise Net Retention ratios of Non-Life Insurance companies from 2014-15 to 2023-24 have consistently stayed above 35% across all [&hellip;]<\/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:\/\/yearbook.websitestage.org\/index.php?rest_route=\/wp\/v2\/pages\/2454"}],"collection":[{"href":"https:\/\/yearbook.websitestage.org\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/yearbook.websitestage.org\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/yearbook.websitestage.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yearbook.websitestage.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2454"}],"version-history":[{"count":49,"href":"https:\/\/yearbook.websitestage.org\/index.php?rest_route=\/wp\/v2\/pages\/2454\/revisions"}],"predecessor-version":[{"id":4144,"href":"https:\/\/yearbook.websitestage.org\/index.php?rest_route=\/wp\/v2\/pages\/2454\/revisions\/4144"}],"up":[{"embeddable":true,"href":"https:\/\/yearbook.websitestage.org\/index.php?rest_route=\/wp\/v2\/pages\/296"}],"wp:attachment":[{"href":"https:\/\/yearbook.websitestage.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}