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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Non Convertible Debentures (NCD) | 400.00 | ACUITE A+ | Stable | Assigned | - |
| Total Outstanding | 400.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has assigned its long-term rating of ‘ACUITE A+’ (read as ACUITE A plus) for the Rs. 400.00 Cr. Proposed Non Convertible Debentures (NCD) of Reliance General Insurance Company Limited (RGIC). The outlook is ‘Stable’.
Rationale for the rating The Rating Rationale factors in RGIC's diversified business and product profile, the new promoter group which should greatly increase access to capital markets and overall volume of business, experienced board of directors, management, and track record of operations, the company's reasonable financial performance, the stable investment portfolio, and capital injection from the new promoters. These strengths are partially offset by the company's modest solvency position, which would be a key monitorable going forward. |
| About the company |
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Maharashtra-based, Reliance General Insurance Company Limited was incorporated in 2000. The company offers a wide umbrella of insurance products in categories such as car, health, personal accident, crop, fire, engineering and marine. The company's Chairman (Designate) is Mr. Arun Tiwari. The directors of the company are Mr. Arun Tiwari, Mr. S. V. Zaregaonkar, Ms. Chhaya Virani, Dr. Thomas Mathew, Mr. Aman Gudral, and Mr. Rakesh Jain.
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| About the Group |
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Hinduja Group has its businesses in the fields of Mobility, Digital Technology, Media, Entertainment & Communications, Infrastructure Project Development, Lubricants & Specialty Chemicals, Energy, Real Estate and Healthcare. The Group strengthened its businesses first under the leadership of Ex-Chairman, Srichand Hinduja and now under Chairman, Gopichand Hinduja and ably supported by his brothers, Prakash and Ashok Hinduja.
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| Unsupported Rating |
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Not Applicable
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| Analytical Approach |
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Acuité has considered standalone business and financial risk profile of RGIC to arrive at the rating.
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| Key Rating Drivers |
| Strength |
| Experienced board of directors, management, and track record of operations
Reliance General Insurance Company Limited, established in 2000, has more than two decades of track record of operations in the general insurance space. The board of the company is chaired by Mr. Arun Tiwari (ex-CMD of Union Bank of India) who has over 40 years of experience in leadership, strategic planning, project finance, risk management, HR, IT, and credit operations. The board comprises four independent directors, one executive director, and one non-executive director. Mr. S.V. Zaregaonkar, with over 46 years of experience in the banking and financial sector, is present as an Independent Director. The daily operations of the company are headed by Mr. Rakesh Jain (Executive Director & CEO). Mr. Jain has over 25 years of work experience in financial services, of which 20+ years are in General Insurance. He is supported by an experienced team with expertise in their respective functions. The key managerial personnel of RGIC, on average, have a vintage of over a decade with the company. Diversified business and product profile For RGIC, motor insurance and crop insurance have traditionally been dominant business segments for the company. During FY25, Motor and Crop contributed 37% and 30%, respectively, of gross written premium (GWP) (FY22: 40% and 32% respectively). Over the years, the company has diversified its line of business away from motor business to health & personal accident segment (FY25: 16%, FY22: 12%) and fire segment (FY25: 10%, FY22: 11%). New promoter group should greatly increase access to capital markets and overall volume of business In March 2025, IndusInd International Holdings Limited (IIHL). acquired RGIC as part of its takeover of Reliance Capital. IIHL completed the acquisition of Reliance Capital. As of end-March 2025, IIHL held 100% stake of Reliance Capital, which in turn held 73.69% of RGIC. 24.95% of RGIC was held by Aasia Enterprises LLP which is a partnership firm in which Mr. Ashok Hinduja and his family members are partners; the remaining 1.36% was held by other shareholders (through ESOPs). The new promoter group is expected to greatly increase RGIC’s access to capital markets over the near-to-medium term. Over the intermediate-term, captive business volumes stemming from the new promoter group will likely be significant. There is also likely to be increased contribution from the retail health segment to the company’s overall business mix, led by strategic alignment with the new promoters. Furthermore, benefits are likely from synergies such as enhanced access to bancassurance channels, which could positively buttress RGIC’s business profile. Reasonable financial performance During FY25, the company’s gross written premium (GWP) grew by 7% to Rs 12,667 crore. The growth was led by motor (grew by 8%) and health & personal accident segment (grew by 9%). The company continues to have moderate financial performance with combined ratio of 117% in FY25 (FY24: 115%). The reported expenses of management (EOM) to GDP ratio stood at 27.83% during FY25 (FY24: 27.91%). Additionally, during FY25, the company’s reported investment assets improved to Rs 21,358 crore (FY24: Rs 20,514 crore) with a reported investment yield of 7.7% (FY24: 7.6%). FY25 PAT improved to Rs 315.44 Cr. (FY24: Rs 280.28 Cr). Stable Investment Portfolio As on 31st March 2025, RGIC’s investment portfolio stood at Rs 21,358 Cr. (FY24: Rs 20,514 Cr.). It largely comprised GoI G-Secs (40.07% of investment book), AAA / AA+ rated corporate bonds (47.25% of investment book) and also some AA / AA- rated corporate bonds (3.86% of investment book), fixed deposits (1.17% of investment book), a fairly small proportion (2.46%) of mutual funds / short-term instruments / CBLO / AIF / InvIT, and only 5.19% of the book in equity shares. Given the composition of the investment book, market risk is considered manageable. Capital injection from the new promoters The new promoters have injected Rs. 300 Cr. in RGIC, of which the last infusion of Rs 100 Cr. was in May 2025. That said, augmenting the solvency buffers remains crucial. |
| Weakness |
| Modest solvency position
Acuite notes that due to the constrained capital support from the previous parent, the company may require equity infusion in the near-to-medium term to cushion its solvency buffers and thus drive business growth. The solvency ratio dipped to 1.59 times as at FY25 (FY24: 1.62 times) as against the regulatory requirement of 1.50 times. The company’s solvency position has remained range-bound between 1.57 times and 1.66 times over the last five years. |
| ESG Factors Relevant for Rating |
| Not applicable |
| Rating Sensitivity |
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| All Covenants |
| Covenants are not available as the facility is proposed |
| Liquidity Position |
| Adequate |
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RGIC has an adequate liquidity profile with liquid investments (G-secs and AAA rated bonds) as at FY25 being Rs 15,219.46 Cr. [FY24: Rs 15,558 Cr.].
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| Outlook: |
| Stable |
| Other Factors affecting Rating |
| None |
| Key Financials - Standalone / Originator | ||||||||||||||||||||||||||||||||
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| Status of non-cooperation with previous CRA (if applicable): |
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None
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| Any other information |
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None
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| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Insurance Companies: https://www.acuite.in/view-rating-criteria-66.htm |
| Note on complexity levels of the rated instrument |
| Rating History : |
| Not Applicable |
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