AmnËH$mbo a{jî`m{_ GIC Re VISION To be a leading global reinsurance and risk solution provider MISSION To achieve our Vision by u Building long-term mutually beneficial relationship with business partners u Practicing fair business ethics and values u Applying “state-of-the-art” technology, processes including enterprise risk management and innovative solutions u Developing and retaining highly motivated professional team of employees u Enhancing profitability and financial strength befitting the global position CORE VALUES u Trust and mutual respect u Professional excellence u Integrity and transparency u Commitment u Responsive service AmnËH$mbo a{jî`m{_ GIC Re G CONTENTS ^ E m a N V E r ` R g A m L Y Corporate Information...................................................................................................................... 2 I m N a U S U ~ R r _ Board of Directors ............................................................................................................................ 3 A m N { C Z J E _ Management .................................................................................................................................... 6 C O R P O Notice ............................................................................................................................................... 7 R A T I O N Directors’ Report .............................................................................................................................. 8 O F I N D I Management Discussion & Analysis Report ................................................................................. 18 A Management Report ...................................................................................................................... 24 Comments by C AG ....................................................................................................................... 26 Auditors’ Report ............................................................................................................................. 27 Addendum to Directors Report..................................................................................................... 30 Revenue Accounts ......................................................................................................................... 31 Profit and Loss Account ................................................................................................................. 35 Balance Sheet ............................................................................................................................... 36 Schedule Forming Part of Financial Statements ........................................................................... 37 Significant Accounting Policies and Notes forming part of the Accounts ...................................... 56 Summary of Financial Statement................................................................................................. 71 Ratio for Non-Life Companeis ....................................................................................................... 73 Cash Flow Statement..................................................................................................................... 76 Balance Sheet Abstract and Company’s Business Profile ............................................................ 78 2 0 Performance Highlights ................................................................................................................ 79 0 8 - 0 Note: Key to Indian Numbering System 10 Lakhs = 1 Million; 1 Crore = 10 Millions. 9 1 BOARD OF DIRECTORS AmnËH$mbo a{jî`m{_ GIC Re G ^ E m a N V E r ` R g A m L Y I m N a U S U BOARD OF DIRECTORS ~ R r _ A m N { C Z J E _ C O R P O R A T I O N O F I N D I A Left to Right : Shri M. Ramadoss, Shri Rajeev Gowda, Shri Yogesh Lohiya (Chairman-cum- Managing Director), Shri Tarun Bajaj, Shri O. P. Bhatt, Shri Kamlesh Shivji Vikamsey 2 0 0 8 - 0 9 3 BOARD OF DIRECTORS AmnËH$mbo a{jî`m{_ GIC Re G ^ E m a N V E r ` R Mr. Yogesh Lohiya, Chairman-cum-Managing Director started his career in the g A m L Insurance Industry in 1977 as a direct recruit officer in The Oriental Insurance Company Y I m N a Ltd. Mr. Lohiya is a mechanical engineering graduate and an Associate of the Insurance U S U ~ Institute of India. He also holds a post-graduate diploma in management. R r _ A m N { C Z Mr. Lohiya is a Director on the Board of Life Insurance Corporation of India (LIC) and J E _ Registrar of Shipping. Mr. Lohiya is Chairman of GIC Housing Finance Co. Ltd and GIC C O Asset Management Co. Ltd. He is also a Director on the Boards of East Africa R P Reinsurance Co., Kenya and Kenindia Assurance Co. Ltd., Kenya and also a Council O R Member of Asian Reinsurance Company, Thailand & a Member of their Management A T I Board. Mr. Lohiya is Executive member of various committees of Federation of Afro Asian O N Insurers and Reinsurers (FAIR) and also member on various committees of trade/ commerce Associations as O well as of Insurance Regulatory & Development Authority & Tariff Advisory Committee. F I N D I Mr. Lohiya is also a visiting faculty at several institutes of higher learning and has also authored several books on A issues related to the Insurance sector. Shri Tarun Bajaj (IAS) Joint Secretary in the Department of Financial Services in the Ministry of Finance, is an IAS officer of the 1988 batch of Haryana cadre. A post- graduate in Management from IIM Ahmedabad, he is also a Chartered Financial Analyst. Mr. Bajaj also holds a post graduate degree from the London School of Economics and Political Science. Mr. Bajaj is also a Director on the Boards of New India Assurance Co. Ltd. , Agriculture Insurance Company of India Limited, Bank of India, Irrigation & Water Resources Finance Corporation Ltd. Mr. O. P Bhatt is the Chairman of State Bank of India, a Fortune 500 company and the largest Public Sector Bank in the country. He also heads the State Bank Group. Mr. Bhatt has been conferred with the CNN- IBN Indian of the Year (Business) in 2007 and Business Standard Banker of the Year award in 2008. He has been awarded the “ Best Executive of the Year Award – 2008 ” by Asia Money and “ The Best Banker of the Year – 2008” by the Financial Express Group. Shri M. Ramadoss Chairman and Managing Director of The Oriental Insurance Company Limited and Chairman of General Insurers Public Sector Association (GIPSA), is a Chartered Accountant. He is also a Fellow of Insurance Institute of India and an 2 Associate of Chartered Insurance Institute of UK. He is the Chairman of Insurance and 0 Pension Committee of ASSOCHAM. He is a Director on the Board of Deposit Insurance 0 and Credit Guarantee Corporation, GIC Housing Finance Limited and India International Insurance Pte. Ltd., Singapore. 8 - 0 9 4 AmnËH$mbo a{jî`m{_ GIC Re G ^ E m a N V E r ` R g A m L Y Shri T.S. Vijayan Chairman of Life Insurance Corporation of India has had a I m N a U distinguished career in the Corporation. He is a science graduate with a diploma in S U ~ Management and was the Managing Director of the Corporation before his current R r _ A m posting. He is also the Chairman of LIC Housing Finance Limited. N { C Z J E _ Under the stewardship of Mr. Vijayan, LIC has achieved many successes in the areas of C O IT and IT Enabled Services. R P O R A T I O N O Mr. T S Narayanasami a distinguished banker and Chairman & Managing Director of F I Bank of India started his banking career as a Probationary Officer in Union Bank of India N D in 1969. In April 2004 Mr. Narayanasami was elevated as Chairman and Managing I A Director of Andhra Bank, a position he held till May 2005. In June 2005 he was appointed as Chairman and Managing Director of Indian Overseas Bank. Subsequently he took over the reins of Bank of India in June 2007. Mr. Kamlesh Vikamsey, a Chartered Accountant by profession, is the Senior Partner of M/s. Khimji Kunverji & Co., Chartered Accountants. Mr. Vikamsey is the President of Confederation of Asian and Pacific Accountants (CAPA). He was a part-time Member of Insurance Regulatory and Development Authority (IRDA) - 2005-2006 and has been a member of several committees constituted by various bodies and agencies of the Government of India. Mr. Vikamsey was also a Member of Steering Committee of United Nations for independent external evaluation and comprehensive review of governance and oversight of its funds, programme & specialized agencies. Mr. Vikamsey was the President of The Institute of Chartered Accountants of India (ICAI) New Delhi in the year 2005-06. Mr. Vikamsey is currently a Director on the Board of several organisations. Dr. M V Rajeev Gowda is a Professor of Economics & Social Sciences at the Indian Institute of Management, Bangalore. An Economics graduate from Bangalore University, Dr. Gowda did his Masters in Economics from Fordham University and Doctorate in Public Policy & Management from the Wharton School, University of Pennsylvania, USA. He was also a Post-doctoral Fellow in Law and Economics at the University of California, Berkeley, USA. Dr. Gowda 2 has co-edited two books, Judgements, Decisions, and Public Policy (2002) and 0 Integrating Insurance and Risk Management for Hazardous Wastes (1990). Dr. Gowda 0 has also served as Consultant for Pricewaterhouse Coopers on Electricity Sector Reforms in Karnataka He has also been actively involved in social and community activities. 8 - 0 9 5 MANAGEMENT AmnËH$mbo a{jî`m{_ GIC Re G ^ MANAGEMENT E m a N V E r ` R g A m L Y I m