Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI

Icici Lombard General Insurance — CLSA 22nd India Forum 2019

24 slides from Icici Lombard General Insurance's conference presentation, November 2019

  1. Slide 1: Corporate Presentation

    icici €Lombard Corporate Presentation

  2. Slide 2: Agenda

    Agenda • Industry Overview • Company Strategy • Financial Performance

  3. Slide 3: Agenda

    Agenda • Industry Overview • Company Strategy • Financial Performance

  4. Slide 4: India Non-life Insurance Market - Large Addressable Market

    India Non - life Insurance Market - Large Addressable Market Significantly underpenetrated % Premium as a % of GDP (CY18) (US$)  4th largest non-life insurance 5.05 4.26 market in Asia and 15th largest 2.62 2.29 2.14 1.92 1.80 globally 1.06 0.97 0.47  Non-life Insurance penetration in India was ar

  5. Slide 5: Industry has witnessed steady growth

    Industry has witnessed steady growth ` billion 54.7% Industry CAGR 1,701 48.9% IL CAGR 1507 12.9% Private player market share 17.2% 17.7% 14.1% 16.6% 36.6% 73.3% 295 0.1% 101 FY2001 FY2008 FY2018 FY2019 Non-Tariff era Industry GDPI Tariff era Industry 18 years CAGR - 17.0%; IL 18 years CAGR – 14.4%

  6. Slide 6: Industry business overview

    Industry business overview Distribution Mix Product Mix FY2019 7% 7% 14% Others 19% 3% 16% Direct Business 16% 6% Crop 10% 2% 2% 35.2% 7% 7% 13% Marine 21% Brokers 20% 28% 30% Fire 24.8% 9% 16% Health & PA Corporate Agents 12% 22% 22% Motor TP 11.7% 29% 28% 18% Motor OD Individual Agents 16% 28.3% F

  7. Slide 7: Agenda

    Agenda • Industry Overview • Company Strategy • Financial Performance

  8. Slide 8: Strategy: Market leadership + Profitable growth

    Strategy: Market leadership + Profitable growth  Leverage our strong brand, competitive advantage and broad network of Leverage and Enhance distribution partners market leadership  Expand customer base and offerings  Focus on agency channel, retail health segment, SME insurance market Enhance pro

  9. Slide 9: ICICI General business overview

    ICICI General business overview Rank by GDPI among Private Sector Multi- Product insurance Product Mix LoB FY2017 FY2018 FY2019 8% 8% Others 13% 14% Motor OD #1 #1 #1 0% 7% 19% 17% Crop 13% 3% Motor TP #1 #1 #1 3% 7% 40% 7% Marine Health and PA #1 #1 #1 28% 20% 20% Fire Crop #1 #1 #1 10% 5% 11% 18%

  10. Slide 10: Comprehensive Product Portfolio: Motor and Health, Travel & PA

    Comprehensive Product Portfolio ` billion 77.4% 73.8% 74.2% 79.3%  Private car, Two wheeler and Commercial Vehicle 15.6% 22.4% 5.0% 12.5% contributed 55.0%, 29.3% and 15.7% respectively of overall Motor Motor GDPI for H12020 and 50.0%, 30.1% and 19.9% 34.08 30.62 30.16 respectively of overall Motor

  11. Slide 11: Comprehensive Product Portfolio: Property & Casualty and Crop

    Comprehensive Product Portfolio ` billion Property & Casualty* 56.1% 67.3% 79.3% 59.5% 20.0% 16.9% 9.9% 28.9%  Increase in reinsurance rates by GIC Re for 8 occupancies under fire segment  Higher retention on account of increase in rates 22.61 26.44 17.54 13.61  Underwriting of small risks for po

  12. Slide 12: Digital Drive: Enabling business transformation

    Digital Drive: Enabling business transformation Risk Selection Robotics / Chat BOTs Claims management Artificial Intelligence & File processing Machine Learning Lean Innovation Fraud detection Operations Data Driven decision Technology Customer portal Dashboards making for service Intermediary app &

  13. Slide 13: Strategy: Market leadership + Profitable growth

    Strategy: Market leadership + Profitable growth  Predictive ultimate loss model to improve risk selection  Diversified exposure across geographies and products Underwriting  Historically lower proportion of losses from catastrophic events than overall market share  Spread of risk across panel of

  14. Slide 14: Agenda

    Agenda • Industry Overview • Company Strategy • Financial Performance

  15. Slide 15: Long term value creation (1/2)

    Long term value creation (1/2) Industry CAGR 17.3% GDPI (` billion) 10.2% Policies Issued (million) 26.5 144.88 33.07 3.5 FY2008 ** FY2019 FY2008** FY2019 -12.2% Profit After Tax (` billion) Headcount Productivity* (` million) 10.49 14.2 1.03 2.3 FY2008 ** FY2019 FY2008 ** FY2019 GDPI Growth excludi

  16. Slide 16: Long term value creation (2/2)

    Long term value creation (2/2) 1 Investment leverage Investment Book (` billion) Investment Income (` billion) 4.09x 2.21x Annualised portfolio return 10.4% 2 222. 31 Annualised equity return 21.1%2 17.55 23. 74 2.19 FY2008 ** FY2019 FY2008 ** FY2019 • Investment portfolio mix3 at FY2019 : Corporate

  17. Slide 17: Financial performance

    Financial performance Combined ratio (% ) Return on average Equity (ROAE) (% ) 23.9% 24.4% 102.6% 20.8% 21.3% 22.0% 22.3% 101.1% 101.5% 100.2% 100.1% 98.5% FY2018 FY2019 Q22019 Q22020 H12019 H12020 FY2018 FY2019 Q22019 Q22020 H12019 H12020 ` billion ` billion Profit before Tax (PBT) Grow th Profit a

  18. Slide 18: Robust Investment Performance

    Robust Investment Performance ` billion Realised RealisedReturn Return(%) (%) Investment Book Investment Leverage2 9.7% 9.4% 3.90x 4.09x 3.77x 4.09x 239.99 222.31 5.2%1 181.93 192.72 4.4%1 FY2018 FY2019 H12019 H12020 FY2018 FY2019 H12019 H12020  Investment portfolio mix3 for H12020 : Corporate bond

  19. Slide 19: Thank you

    9 ICICI ELombard Thank you

  20. Slide 20: Annexure

    Annexure icici @.ombard ‘Nibhaye Vaade

  21. Slide 21: Loss Ratio

    Loss Ratio Particulars FY2018 FY2019 Q22019 Q22020 H12019 H12020 Motor OD 53.7% 59.2% 59.7% 71.8% 61.3% 70.0% Motor TP 107.1% 90.8% 90.5% 86.4% 90.5% 88.6% Health,Travel* & PA 64.3% 73.5% 76.4% 71.0% 76.4% 69.6% Crop 135.0% 106.5% 117.1% 111.6% 117.0% 111.6% Fire 43.1% 83.2% 84.6% 75.6% 96.3% 80.8%

  22. Slide 22: Impact of catastrophic events: Historical snapshot

    Impact of catastrophic events : Historical snapshot ₹ billion Catastrophic Event Economic Insured Our Share of Year Losses losses Insured losses Maharashtra, Gujarat, 2019 280.00 20.00 3.70% Karnataka, Kerala Floods Cyclone Fani 2019 120.00 12.25 2.69% Kerala floods 2018 300.00 30.00 2.37% Chennai f

  23. Slide 23: Reserving Triangle Disclosure – Total

    1 Reserving Triangle Disclosure – Total ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2019 Prior AY 10 AY 11 AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 End of First Year 39.01 15.13 20.66 22.53 27.97 35.96 34.16 39.13 49.49 52.41 65.27 One year later 39.86

  24. Slide 24: Reserving Triangle Disclosure – IMTPIP

    Reserving Triangle Disclosure – IMTPIP ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2019 AY 08 AY 09 AY 10 AY 11 AY 12 AY 13 End of First Year 2.71 One year later 3.85 2.72 Two years later 4.49 3.85 2.73 Three years later 5.81 4.49 3.98 2.73 Four years later 6

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