Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — 9M FY2024 Earnings Presentation
31 slides from Icici Lombard General Insurance's earnings presentation, 2024
Slide 1: 9M2024 Performance Review
icici @Lombard | Nibhaye Vaat Team 9M2024 Performance Review
Slide 2: 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 fo
Slide 3: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 4: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 5: ICICI Lombard General Insurance – Pillars of Strength
ICICI Lombard General Insurance – Pillars of Strength Consistent Market Diverse products Excellence in Risk Capital Leadership and and multi- Customer service Management Conservation growth channel and Technology distribution • Leading private sector • Comprehensive and • Leveraging on Artificial •
Slide 6: Key Highlights
Key Highlights Particulars FY2022 FY2023 9M2023 9M2024 (₹ billion) Actual Actual Actual Actual Gross Written Premium 185.62 217.72 164.32 193.31 Gross Direct Premium Income (GDPI) 179.77 210.25 160.48 187.03 GDPI Growth 28.4% 17.0% 20.6%* 16.5%* Combined Ratio (CoR) 108.8% 104.5% 104.6% 103.7% Profi
Slide 7: Comprehensive Product Portfolio
Comprehensive Product Portfolio Product Mix 0% 9% 10% 10% 11% 4% Others 3% 4% 5% 6% 3% 4% 0% 3% 16% Crop 15% 15% 14% Marine 22% 27% 26% 29% Fire Health, Travel & PA 23% 21% 21% Motor TP 19% Motor OD 23% 20% 19% 18% FY2022 FY2023 9M2023 9M2024 Diversified product mix– motor, health, travel & person
Slide 8: Comprehensive Product Portfolio: Motor
Comprehensive Product Portfolio: Motor ₹ billion 70.9% 72.4% 70.4% 64.9% Motor GDPI Mix 82.80 85.82 64.00 68.55 Type 9M2023 9M2024 Motor 42.12 44.31 Private car 49.6% 51.4% 33.90 34.68 Two Wheeler 28.2% 27.8% 40.68 41.51 30.10 33.87 Commercial Vehicle 22.2% 20.8% FY2022 FY2023 9M2023 9M2024 Loss Rat
Slide 9: Comprehensive Product Portfolio: Health, Travel & PA
Comprehensive Product Portfolio: Health, Travel & PA ₹ billion 91.7% 77.3% 78.0% 80.1% Health, Travel & PA GDPI Mix Health, Travel & PA Type 9M2023 9M2024 Individual 18.8% 17.3% 40.07 55.92 41.39 53.19 Group – Others 29.0% 30.0% Group Employer-Employee 52.1% 52.6% FY2022 FY2023 9M2023 9M2024 Mass 0.
Slide 10: Comprehensive Product Portfolio: P&C
Comprehensive Product Portfolio: P&C ₹ billion Property & Casualty (P&C) Market Share 59.4% 59.7% 60.5% 71.4% Property & Casualty Product 9M2023 9M2024 Fire 12.8% 13.0% Engineering 16.3% 17.8% 50.24 59.73 46.35 53.62 Marine Cargo 18.0% 19.4% Liability 16.7% 19.1% FY2022 FY2023 9M2023 9M2024 Loss Rat
Slide 11: Digital Opportunities
Digital Opportunities Service Excellence Policy Issuance Claims & Servicing ILTakeCare App 26.2 Mn Policies sourced 2.1 Mn Claims honored 8.5 Mn+ ILTakeCare user downloads (4.6 Mn 99.3% issued electronically 64 Claims NPS in Q22024 at March 31, 2023) (72 in Q12024 ) (96.7% in FY2023) Automation and
Slide 12: Risk Management
Risk Management Underwriting Reinsurance Predictive ultimate loss model to improve risk selection Spread of risk across panel of quality re-insurers Diversified exposure across geographies and products Conservative level of catastrophe (CAT) protection Historically lower proportion of loss
Slide 13: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 14: Financial performance
Financial performance Combined ratio (CoR) (% ) Return on average Equity (ROAE) (% ) 108.8% 17.7% 18.1% ₹ billion 17.1% 14.7% 14.3% 15.3% 104.5% 104.4% 104.6%** 103.6%* 103.7% ** FY2022 FY2023 Q32023 Q32024 9M2023 9M2024 FY2022 FY2023 Q32023 Q32024 9M2023 9M2024 Profit before Tax (PBT) Growth Profit
Slide 15: Robust Investment Performance
Robust Investment Performance ₹ billion Realised Return (%) Realised Return (%) Investment Leverage 2 Realised Return (% ) Investment Book 4.23x 4.15x 4.16x 4.11x 8.45% 468.67 7.50% 431.80 414.51 1 387.86 1 5.89% 5.47% 1.88%1 1.84% 1 FY2022 FY2023 Q32023 Q32024 9M2023 9M2024 FY2022 FY2023 9M2023 9M2
Slide 16: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 17: Safeguarding environment
Safeguarding environment An overarching Policy on Environment Management Responsible Environment friendly Protecting the consumption business practices environment • Insurance • Adopting green measures for • Adapting methods to conserve natural solutions enabling transition communication across orga
Slide 18: Contributing the Social Way
Contributing the Social Way Addressing Creating value for Enabling community customer needs employees awareness and development • Aimed at community well-being in areas of skill • Providing best-in-class experience • Hiring from diverse skill sets; Employee friendly policies development, sustainable
Slide 19: Strong Governance
Strong Governance Robust Structure Code of conduct Data protection • Optimum mix of Executive/Non-Executive • Conducting business with highest • Dedicated Information Security Council Directors as per Policy on Board Diversity standards of compliance and ethics • Enforcing leading practices and cont
Slide 20: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 21: Non-life Insurance Market Large Addressable Market
Non - life Insurance Market Large Addressable Market Significantly underpenetrated 9.0 Premium as a % of GDP (CY22) 5.8 India: US$ EA*: US$ World: US$ 31.54 billion 396.14 billion 3,969.20 billion 2.4 2.3 2.2 1.9 1.9 1.0 0.6 0.5 Non-Life Insurance Density 4th largest non-life insurance market in A
Slide 22: Industry has witnessed steady growth
Industry has witnessed steady growth ₹ billion Industry CAGR 16.4% # 14.1% # IL CAGR 17.0% # 16.5% # 49.7% 51.4% 53.8% Market Share of Private Players** 51.4% 2,207.72 2,569.12 2,134.86 1,872.32 15.5% 12.9% 16.6% 73.3%* 36.6% 0.1% 294.98 100.87 FY2001 FY2008 FY2022 FY2023 9M2023 9M2024 *IL CAGR FY20
Slide 23: Thank you
2 ICICI ELombard | Nibhaye Vaac Team Thank you
Slide 24: Annexure
Annexure ( 3 L Team icici @.ombard ‘Nibhaye Vaade
Slide 25: Loss Ratio
Loss Ratio Particulars FY2022 FY2023 Q32023 Q32024 9M2023 9M2024 Motor OD 68.1% 72.6% 73.0% 64.9% 73.7% 65.3% Motor TP 74.0% 72.2% 61.9% 61.6% 67.3% 64.6% Health,Travel & PA 91.7% 77.3% 78.2% 79.2% 78.0% 80.1% Crop 107.9% 80.1% 111.8% 99.0% 89.6% 91.9% Fire 53.1% 49.3% 49.8% 68.2% 49.0% 70.6% Marine
Slide 26: Abbreviations & Glossary
Abbreviations & Glossary: IBNR – Incurred But Not Reported AI - Artificial Intelligence IL – ICICI Lombard General Insurance Company Limited App- Application ISO – International Organization for Standardization AY – Accident Year IMTPIP – Indian Third Party Insurance Pool BAGI – Bharti Axa General I
Slide 27: Impact of catastrophic events: Historical snapshot
Impact of catastrophic events: Historical snapshot ₹ billion Economic Insured Our Share of Insured Catastrophic Event Year Losses losses* losses Cyclone Michaung 2023 120.00 25.00 5.88% North India Floods# 2023 150.00 12.00 7.97% Cyclone Biparjoy1 2023 60.00-80.00 15.00 5.24% Cyclone Tauktae* 2021 1
Slide 28: Reserving Triangle Disclosure: Total
Reserving Triangle Disclosure: Total1 Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2023 Prior* AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 AY 23 End of First Year 139.78 44.87 44.37 49.39 59.24 62.46 77.00 87.33 83.76 101.17 114.84 ₹ billion One year later 138
Slide 29: Reserving Triangle Disclosure: IMTPIP
Reserving Triangle Disclosure: IMTPIP Incurred Losses and Allocated Expenses (Ultimates movement) As at March 31, 2023 AY 08 AY 09 AY 10 AY 11 AY 12 AY 13 ₹ billion End of First Year 2.71 One year later 3.85 2.72 Two years later 4.49 3.85 3.54 Three years later 5.81 4.49 5.52 3.61 Four years later 6
Slide 30: Reserving Triangle Disclosure: Motor-TP (excl. IMTPIP)
Reserving Triangle Disclosure: Motor-TP (excl. IMTPIP) Incurred Losses and Allocated Expenses (Ultimates movement) As at March 31, 2023 Prior* AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 AY 23 ₹ billion End of First Year 17.83 10.74 12.63 15.97 17.05 19.98 24.41 31.55 25.15 28.07 35.39 One
Slide 31: Reserving Triangle Disclosure: Total (excl. Motor-TP)
Reserving Triangle Disclosure: Total (excl. Motor-TP) Incurred Losses and Allocated Expenses (Ultimates movement) As at March 31, 2023 Prior* AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 AY 23 ₹ billion End of First Year 121.95 34.13 31.74 33.42 42.19 42.48 52.58 55.78 58.61 73.11 79.46 One
ICICI Lombard General Insurance Company — 9M FY2024 Earnings Presentation on 6ix