K.M. Dastur Reinsurance Brokers Pvt.Ltd

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1 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, 5 th Floor, 42,Jamsetji Tata Road, Churchgate, Mumbai

2 COUNTRY REVIEW - INDIA 2

3 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: 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% ( ) A major Economic Power in terms of Purchasing Power Parity. Energy Deficit Country

4 OIL - STATISTICS Country s Barrels Daily Oil Consumption TABLE s Barrels Daily Oil Production % Production / Consumption Million Barrels Oil Proven Reserve USA 18,555 8, CHINA 10,221 4, JAPAN 4,714 Negligible Nil Negligible INDIA 3, MALAYSIA INDONESIA 1, THAILAND 1, (Source: BP Statistical Review of World Energy 2013)

5 GAS - STATISTICS TABLE 2 Country Gas Consumption 2012 Billion Cubic Feet (Trillion Cubic Feet) Gas Production % Production / Consumption Proven Reserve USA RUSSIA CHINA JAPAN INDIA INDONESIA MALAYSIA THAILAND (Source: BP - Statistical Review of World Energy 2013)

6 Physical Map of India CAIRN ENERGY (Producing) Onshore Assam / North East (Producing) Gulf of Cambay Basin Damodar Basin (Exploratory) Mahanadi Basin (Exploratory) Gulf of Kutch SBM KG Basin Producing Developing Exploratory ONGC Bombay High Cauvery Basin Producing Developing Exploratory

7 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.

8 Insurance Markets (contd.) (Million) 135 Market Capacity Market But GIC capacity on following risk:- ONGC : USD 150 Million RIL : USD 150 Million GSPC : USD 75 Million ABAN : USD 75 Million

9 Insurance Market (contd.) GIC GIC Net worth : USD 1.77 Billion Assets : USD 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)

10 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

11 Insurance Market (contd.) Current Annual Premium - Upstream Estimated at USD 175 Million Construction, $15 Million Rigs, $25 Million Operation (incl. COW), $135 Million Operation (incl COW) Rigs Construction

12 Energy Large Losses for last 5 years Underwriting Year Policy Nature of Loss 100% loss (Mn) Offshore Construction Jacket sinking Offshore Construction Toppling and Damage to Tripod Jacket Offshore Package Well Blowout Offshore Package Damage to SBM Mooring Hose Offshore Rig Rig sinking Pipe pull incident Loss of Buoyancy tanks Offshore Package Uncontrolledflow of Gas from Well Onshore Package SBM sinking 20.00

13 Oil and Gas Insurance Trend 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.

14 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.

15 Shale Gas India embarking on Shale Gas Exploration Environmental issues ONGC / Oil India only permitted now for Exploration

16 Save The Tiger

17 Save The Tiger

18 Thank You

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