Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Investor Presentation (May 2018)
24 slides from Icici Lombard General Insurance's investor presentation, May 15, 2018
Slide 1: Corporate Presentation
Corporate Presentation Gleici ELombard “ Nibhaye Vaade
Slide 2: Agenda
Agenda Industry Overview Operating Performance Financial Performance 2
Slide 3: Agenda
Agenda Industry Overview Operating Performance Financial Performance 3
Slide 4: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion 14.1% 33.2% 37.1% 41.9% 43.4% 1507 1282 17.5% 18.2% 15.8% 16.7% 469 261 164 FY2004 FY2007 FY2011 FY2017 FY2018 GDPI Growth Mkt share of Pvt. multi product players Industry has grown at CAGR of 17% in the last 16 years Source: Latest IRDAI report 4
Slide 5: Addressable Market
India Non-life Insurance Market- Large Addressable Market Significantly underpenetrated Premium as a % of GDP (US$) (%) (CY16) 4.29 2.74 2.58 4th largest non-life insurance 2.37 World: 2.81 1.81 1.76 1.70 market in Asia 1.36 0.77 0.51 GDPI growth at CAGR of 17% from FY2001 to FY2017 Non-life I
Slide 6: Agenda
Agenda Industry Overview Operating Performance Financial Performance 6
Slide 7: Market leadership + Profitable growth
Market leadership+ Profitable growth 4th largest player* in the market with continued market leadership amongst private players Multi-Product Multi-Channel Pan-India Distribution Focused Digital Drive Robust Risk Framework Superior Investment and Financial Performance 7 *Source: IRDAI report
Slide 8: Leadership position across product segments
Leadership position across product segments Rank by GDPI among Private Sector FY2015 FY2016 FY2017 FY 2018 Multi - Product insurance Motor OD* #1 #1 #1 #1 Motor TP* #1 #1 #1 #1 Health and Personal Accident #1 #1 #1 #1 Crop #1 #1 #1 Fire #1 #1 #1 #1 Marine #2 #1 #1 #1 Engineering #1 #1 #1 #1 *Motor O
Slide 9: Comprehensive Product Portfolio
Comprehensive Product Portfolio Product Mix 9% 8% 9% 7% 4% 20% 19% Others 8% 3% 3% Crop 7% 7% 21% Marine 19% 19% Fire 20% 17% 18% Health & PA Motor TP 31% 26% 25% Motor OD FY2016 FY2017 FY2018 Diversified product mix– motor, health & personal accident, crop, fire, marine, engineering insurance P
Slide 10: Comprehensive Product Portfolio: Motor, Health & PA
Comprehensive Product Portfolio ` billion 8 0 .3% 7 8 .9% 7 7 .4% 2 1.5% 9 .4% 1 5.6% Private car, Two wheeler and Commercial Vehicle contributed 51.3%, 30.5% and 18.2% respectively of Motor GDPI for FY2018 and 49.6%, 32.3% and Motor 30.62 27.60 25.23 17.82 21.87 18.1% respectively of Motor GDPI f
Slide 11: Comprehensive Product Portfolio: Crop, Property
Comprehensive Product Portfolio 140.0% 8 4 .2% 135.0% 115.0% 263.0% 1 0.2% Diversification through strategic risk selection to mitigate region specific Crop 21.51 23.71 concentration 5.93 Covered farmers in 8 states and 71 districts FY2016 FY2017 FY2018 in Kharif and Rabi season during FY2018 Lo
Slide 12: Multi-Channel Pan India Distribution
Multi-Channel Pan India Distribution Key Distribution Channel Mix 1 ` billion Catering to customers in 638 out of 716 districts across India Direct Business 46.30 48.30 for FY2018 29.22 34.51 39.1% FY2015 FY2016 FY2017 FY2018 One of the largest direct sales Brokers force 2 32.66 41.90 19.00 26.0
Slide 13: Digital Drive: Enabling business transformation
Digital Drive :Enabling business transformation Risk selection Robotics / ChatBOTs Claims management File processing Artificial Intelligence Fraud detection Lean Innovation Operations Technology Dashboards for service & Analytics Customer portal excellence Data Driven decision Intermediary app makin
Slide 14: Risk Framework
Risk Framework Predictive ultimate loss model to improve risk selection Underwriting Diversified exposure across geographies and products Historically lower proportion of losses from catastrophic events than overall market share Spread of risk across panel of quality re-insurers Reinsurance
Slide 15: Agenda
Agenda Industry Overview Company Strategy Financial Performance 15
Slide 16: Key Highlights
Key Highlights Particu lars FY 2016 FY 2017 FY 2018 ( ` billion , except per sh are) Actu al Actu al Actu al Gross Written Premiu m 82. 96 109. 60 126. 00 Gross Direct Premiu m In come (GDPI) 80. 91 107. 25 123. 57 GDPI Grow th 21. 2% 32. 6% 15. 2% C ombin ed Ratio 106. 9% 103. 9% 100. 2% Profit aft
Slide 17: Robust Investment Performance
Robust Investment Performance 1 Realised Return Investment Book (` bn) Investment Leverage 10. 3% 10. 0% 9. 7% 3.64X 3.88X 3.90X 181.93 149.50 115.63 FY2016 FY2017 FY2018 FY2016 FY2017 FY2018 Investment portfolio mix2 at FY2018 : Corporate bonds (47.57%), G-Sec (29.94%) and equity (16.67%) Stron
Slide 18: Financial performance
Financial performance C ombined Ratios (%) Retu rn on Average Equity (%) 106. 9% 20. 3% 20. 8% 103. 9% 16. 9% 100. 2% FY 2016 FY 2017 FY 2018 FY 2016 FY 2017 FY 2018 Profit before Tax (` bn) Profit after Tax (` bn) 2.5% 28.6% 31.4% - 5.3% 38.3% 22.8% 11. 96 8. 62 9. 10 7. 02 7. 08 5. 07 FY2016 FY201
Slide 19: Thank you
Thank you 19 /q@)iciciEtombard ( J Nibhaye Vaade
Slide 20: Annexure
Annexure Icici Lombard a 1 Nibhaye Vaade
Slide 21: Loss ratio
Loss ratio Particu lars FY 2016 FY 2017 FY 2018 Motor OD 65. 6% 64. 2% 53. 7% Motor TP 97. 7% 97. 4% 107. 1% Health 84. 7% 97. 9% 77. 6% PA 64. 3% 41. 3% 23. 9% C rop 140. 0% 84. 2% 135. 0% Fire 63. 6% 68. 4% 43. 1% Marin e 97. 5% 83. 9% 54. 2% En gin eerin g 69. 4% 53. 3% 24. 0% Oth er 69. 3% 62. 1
Slide 22: Reserving Triangle Disclosure – Total
Reserving Triangle Disclosure – Total 1 Incurred Losses and Allocated Expenses (Ultimate Movement) ` billions As at March 31, 2018 Prior AY 09 AY 10 AY 11 AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 End of First Year 25.23 12.85 15.13 20.66 22.53 27.97 35.96 34.16 39.13 49.49 52.41 One year later 26.1
Slide 23: Reserving Triangle Disclosure – IMTPIP
Reserving Triangle Disclosure – IMTPIP Incurred Losses and Allocated Expenses (Ultimate Movement) ` billion As at M arch 31, 2018 AY 08 AY 09 AY 10 AY 11 AY 12 AY 13 E nd o f First Y ear 2.71 One y ear later 3.85 2.72 T wo y ears later 4.49 3.85 2.73 T hree y ears later 5.81 4.49 3.98 2.73 Fo ur y e
Slide 24: Safe harbor
Safe harbor Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', 'would', ‘indicating’, ‘expected to’ etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forwar
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