Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — 9M FY2020 Earnings Presentation
22 slides from Icici Lombard General Insurance's earnings presentation, 2020
Slide 1: 9M2020 Performance Review
icici €Lombard 9M2020 Performance Review
Slide 2: Agenda
Agenda • Company Strategy • Financial Performance • Industry Overview
Slide 3: Agenda
Agenda • Company Strategy • Financial Performance • Industry Overview
Slide 4: 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
Slide 5: Key Highlights
Key Highlights Particulars FY2018 FY2019 9M2019 9M2020 (` billion) Actual Actual Actual Actual Gross Written Premium 126.00 147.89 112.61 103.61 Gross Direct Premium Income (GDPI) 123.57 144.88 110.03 101.32 GDPI Growth 15.2% 17.2% 16.7% -7.9% GDPI Growth (excluding crop) 16.5% 20.5% 17.7% 13.2% Com
Slide 6: Comprehensive Product Portfolio Product Mix
Comprehensive Product Portfolio Product Mix 8% 8% 9% 9% Others 3% 1% 19% 17% 19% 12% Crop 3% 3% 3% 7% Marine 7% 8% 25% 20% 20% Fire 19% 23% Health, Travel* & PA 18% 21% 19% Motor TP 25% 24% 23% 27% Motor OD FY2018 FY2019 9M2019 9M2020 Diversified product mix– motor, health, travel* & personal acci
Slide 7: Comprehensive Product Portfolio: Motor and Health, Travel & PA
Comprehensive Product Portfolio ` billion 77.4% 73.8% 73.1% 77.9% Private car, Two wheeler and Commercial Vehicle 15.6% 22.4% 16.5% 9.5% contributed 55.9%, 29.5% and 14.6% respectively of overall Motor GDPI for 9M2020 and 50.1%, 28.9% and 21.0% Motor 34.08 respectively of overall Motor GDPI for 9M
Slide 8: Property & Casualty
Comprehensive Product Portfolio ` billion Property & Casualty* 56.1% 67.3% 70.9% 57.8% Increase in reinsurance rates for other occupancies 16.9% 17.8% 18.6% 20.0% (rates for 8 occupancies increased w.e.f. March 2019) under fire segment w.e.f. January 1, 2020 26.44 25.08 Higher retention on accou
Slide 9: 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 &
Slide 10: 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
Slide 11: Agenda
Agenda • Company Strategy • Financial Performance • Industry Overview
Slide 12: Robust Investment Performance
Robust Investment Performance ` billion Realised RealisedReturn Return(%) (%) Investment Book Investment Leverage2 9.7% 9.4% 3.90x 4.09x 3.92x 4.16x 7.3%1 6.3%1 248.45 222.31 181.93 204.45 FY2018 FY2019 9M2019 9M2020 FY2018 FY2019 9M2019 9M2020 Investment portfolio mix3 for 9M2020 : Corporate bond
Slide 13: Financial performance
Financial performance Combined ratio (% ) Return on average Equity (ROAE) (% ) 21.3% 22.7% 21.8% 100.2% 100.5% 20.8% 20.3% 98.5% 98.7% 98.7% 19.0% 95.9% FY2018 FY2019 Q32019 Q32020 9M2019 9M2020 FY2018 FY2019 Q32019 Q32020 9M2019 9M2020 ` billion ` billion Grow th Profit before Tax (PBT) Profit afte
Slide 14: Agenda
Agenda • Company Strategy • Financial Performance • Industry Overview
Slide 15: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion Growth 12.9% 1,701 15.5% 1,507 1,421 1,231 17.7% 15.5% 482 271 FY2007 FY2011 FY2018 FY2019 9M2019 9M2020 Industry has grown at CAGR of 17.0% in the last 18 years Source: Latest IRDAI and GI Council 15
Slide 16: 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
Slide 17: Thank you
9 ICICI ELombard Thank you
Slide 18: Annexure
Annexure icici @.ombard ‘Nibhaye Vaade
Slide 19: Loss Ratio
Loss Ratio Particulars FY2018 FY2019 Q32019 Q32020 9M2019 9M2020 Motor OD 53.7% 59.2% 53.0% 68.8% 58.4% 69.6% Motor TP 107.1% 90.8% 91.7% 81.8% 90.9% 86.3% Health,Travel* & PA 64.3% 73.5% 74.3% 69.6% 75.7% 69.6% Crop 135.0% 106.5% 116.3% 110.4% 116.9% 111.3% Fire 43.1% 83.2% 58.5% 50.1% 83.2% 67.8%
Slide 20: 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, Karnataka, 2019 709.70** 20.00 4.10% Kerala & other states Floods Cyclone Fani 2019 120.00 12.25 2.69% Kerala floods 2018 300.00
Slide 21: 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
Slide 22: 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
ICICI Lombard General Insurance Company — 9M FY2020 Earnings Presentation on 6ix