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K.M. Dastur Reinsurance Brokers Pvt.Ltd

The only Insurance Brokers in India to be ISO 9001/2000 certified BY TUV Germany

K.M. Dastur Reinsurance Brokers Pvt.Ltd, Cambata Building, 5th Floor, 42,Jamsetji Tata Road, Churchgate, Mumbai 400020

COUNTRY REVIEW -

INDIA

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KMD

INDIA – A SNAPSHOT

� Sovereign Democratic Republic

� 29 states

� 22 scheduled Languages / 2000 listed Dialects

� World’s Seventh Largest country - area wise

� World’s Second largest Population (count: 1.237

Billion) – 51 Birth a minute

� Young Population – 50% of Population below 25

year

� Birthplace of several Religion

� GDP Growth : Current 4.2%

Highest 9.2% (2006-2007)

� A major Economic Power in terms of Purchasing Power Parity.

� Energy Deficit Country

KMD

OIL - STATISTICS

TABLE – 1

CountryOil

Consumption

Oil

Production

%

Production /

Consumption

Oil Proven

Reserve

USA 18,555 8,905 48 35

CHINA 10,221 4,155 41 17.3

JAPAN 4,714 Negligible Nil Negligible

INDIA 3,652 894 24 5.7

MALAYSIA 697 657 94 3.7

INDONESIA 1,565 918 59 3.7

THAILAND 1,212 440 36 0.4

(Source: BP – Statistical Review of World Energy 2013)

2012

‘000’ Million Barrels

2012

000’s Barrels Daily

2012

000’s Barrels Daily

KMD

GAS - STATISTICS

TABLE – 2

CountryGas

Consumption

Gas

Production

%

Production /

Consumption

Proven Reserve

USA 69.7 65.7 94 300

RUSSIA 40.2 57.1 142 1162.5

CHINA 13.9 10.3 74 109.3

JAPAN 11.3 - - -

INDIA 5.3 3.9 74 47

INDONESIA 3.5 6.9 197 103.3

MALAYSIA 3.2 6.3 197 46.8

THAILAND 4.9 4.0 82 10.1

(Source: BP - Statistical Review of World Energy 2013)

2012 – Billion Cubic Feet (Trillion Cubic Feet)

KMD

Physical Map of India

ONGC

Bombay High

Onshore Assam /

North East

(Producing)

Damodar Basin

(Exploratory)

Mahanadi Basin

(Exploratory)

KG Basin

• Producing

• Developing

• Exploratory

Cauvery Basin

• Producing

• Developing

• Exploratory

Gulf of Cambay

Basin

CAIRN ENERGY

(Producing)

Gulf of Kutch

SBM

KMD

Insurance Market

� Total number of Non Life Insurance Companies

� Public Sector : 4

� Private Sector : 23

� One Reinsurance Company – GIC Re

� Public Sector companies active in Oil and Energy Insurance. Only certain

Private Sector Companies are active in Oil and Energy.

� Insurance capacity ramped up from 2004.

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Insurance Markets (contd.)

But GIC capacity on following risk:-

ONGC : USD 150 Million

RIL : USD 150 Million

GSPC : USD 75 Million

ABAN : USD 75 Million

Market Capacity(Million)

2.5

27.5 27.532.5

32.5

47.5

62.5

102.5 102.5

117.5

0

15

30

45

60

75

90

105

120

135

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Market

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Insurance Market (contd.)

GIC

� Net worth : USD 1.77 Billion

� Assets : USD 11.04 Billion

� Premium : USD 34 Million (Oil and Gas)

� Fac Capacity : USD 20 Million (Foreign)

USD 50 Million ( Domestic)

� Security : A- (AM Best)

New India

� Net worth : USD 1.28 Billion

� Assets : USD 5.25 Billion

� Premium : USD 25 Million (Oil and Gas)

� Fac Capacity : USD 40 Million (Foreign)

USD 40 Million (Domestic)

� Security : A- (AM Best)

New India

GIC

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Insurance Market (contd.)

� United India writing ONGC Package for nearly 30 years now.

� National / ICICI have capacity of USD 10 Million.

� All Treaties led by Hannover Re except ICICI led by XL Re.

� Other Insurers also looking to avail Treaty Facility.

� Major Reinsurers

Operation

• ACE

• AIG

• Zurich

• Lloyds

• GIC

• Trust Re

Construction

• Lloyds

• GIC

• Trust Re

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Insurance Market (contd.)

Current Annual Premium - Upstream Estimated at USD 175 Million

Operation

(incl. COW),

$135 Million

Rigs, $25 Million

Construction,

$15 Million

Operation (incl COW)

Rigs

Construction

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Energy Large Losses for last 5 years

Underwriting

Year

Policy Nature of Loss 100% loss

(Mn)

2008-09 Offshore Construction Jacket sinking 25.30

2009-10 Offshore Construction Toppling and Damage to

Tripod Jacket

20.00

2009-10 Offshore Package Well Blowout 65.5

2010-11 Offshore Package Damage to SBM Mooring

Hose

21.0

2010-11 Offshore Rig Rig sinking 235.0

2010-11 Pipe pull incident Loss of Buoyancy tanks 30.5

2012-13 Offshore Package Uncontrolled flow of Gas from

Well

115.00

2013-14 Onshore Package SBM sinking 20.00

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Oil and Gas Insurance

� Indian Oil Companies looking to buy

Assets Overseas (Mozambique / Brazil).

ONGC Videsh Ltd (OVL) major buyer of

Assets worldwide. Investment (nearly

USD 10 Billion) in the field.

� ONGC conversion of Rigs to MOPU

(Three conversions underway – more

expected)

� Looking to develop Deep Water

Technology.

� East Coast – growth dependent on

progress in Technology / Price of Gas.

Trend

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Oil and Gas Insurance....contd.

� Construction : ECV USD 1 Billion

annually

� 5 Rigs under Construction in yards in

India.

� Market expected to grow by 10% -

15% mainly due to increase in

construction activities.

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Shale Gas

� India embarking on Shale Gas

Exploration

� Environmental issues

� ONGC / Oil India only permitted now for

Exploration

KMD

Save The Tiger

KMD

Save The Tiger

KMD

Thank You