Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Q1 FY2021 Earnings Presentation
32 slides from Icici Lombard General Insurance's earnings presentation, Jul 17, 2020
Slide 1: Filing cover letter to stock exchanges
Ref No.: MUM/SEC/89-07/2021 July 17, 2020 To, To, General Manager Vice President Listing Department Listing Department BSE Limited The National Stock Exchange of India Limited Phiroze Jeejeebhoy Tower, Exchange Plaza, 5th Floor, Plot C/1, Dalal Street, Fort G Block, Bandra-Kurla Complex Mumbai – 400
Slide 2: Q1 2021 Performance Review
icici €Lombard Q12021 Performance Review
Slide 3: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Update- COVID-19 • Industry Overview
Slide 4: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Update- COVID-19 • Industry Overview
Slide 5: ICICI General – Pillars of Strength
ICICI General – Pillars of Strength Consistent Market Diverse products Excellence in Risk Capital Leadership and and multi-channel Customer service Management Conservation growth distribution and Technology • Leading private sector • Comprehensive and • Profitable growth • Leveraging on Artificial n
Slide 6: Key Highlights
Key Highlights Particulars FY2019 FY2020 Q12020 Q12021 (₹ billion) Actual Actual Actual Actual Gross Written Premium 147.89 135.92 35.61 33.94 Gross Direct Premium Income (GDPI) 144.88 133.13 34.87 33.02 GDPI Growth 17.2% -8.1% -7.6% -5.3% GDPI Growth (excluding crop) 20.5% 10.5% 17.7% -6.2% Combine
Slide 7: Comprehensive Product Portfolio
Comprehensive Product Portfolio Product Mix 0% Others 8% 8% 10% 10% 4%0% 4% 0% 1% Crop 17% 4% 12% 17% 3% 26% Marine 7% 25% 20% 26% Fire 24% 23% Health, Travel* & 21% 19% 17% PA Motor TP 24% 28% 24% 18% Motor OD FY2019 FY2020 Q12020 Q12021 ⚫ Diversified product mix– motor, health, travel & personal a
Slide 8: Comprehensive Product Portfolio - Motor
Comprehensive Product Portfolio - Motor ` billion Motor GDPI Mix 73.8% 76.5% 79.5% 66.4% Type Q12020 Q12021 22.4% 5.7% 14.1% -22.4% Private car 55.4% 59.2% Motor Two Wheeler 27.3% 26.0% Commercial Vehicle 17.3% 14.8% 34.08 30.16 36.89 30.99 ⚫ Loss cost driven micro-segmentation resulting in 8.17 6.6
Slide 9: Comprehensive Product Portfolio – Health, Travel & PA
Comprehensive Product Portfolio – Health, Travel & PA ` billion Health, Travel* & PA GDPI Mix 73.5% 69.9% 68.0% 75.5% Health, Travel* Type Q12020 Q12021 19.9% 12.2% 12.5% -12.2% & PA Individual 19.5% 20.1% Group – Others 32.6% 10.8% 29.69 33.32 Group Employer-Employee 47.9% 69.1% 9.07 7.97 Mass 0.0%
Slide 10: Comprehensive Product Portfolio – P&C
Comprehensive Product Portfolio – P&C ` billion ⚫ Accretion of market share in commercial lines 67.3% 57.4% 66.9% 74.5% Property & Casualty (P&C) Market Share Property & Casualty* 20.4% 28.0% 20.5% Product Q12020 Q12021 16.9% Fire 11.0% 11.4% Engineering 13.5% 13.9% 31.83 26.44 Marine Cargo 14.8% 18
Slide 11: Digital Initiatives
Digital Initiatives Service Excellence Automation & Scale Policy Issuance Next Gen Solutions Policies sourced – 3.6 mn Cloud deployment 97.5% issued electronically Big Data & Customer experience management AI and ML Solutions Claims & Servicing 36.2%* cashless authorization Claims honored – 0.2 mn t
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 • Update- COVID-19 • Industry Overview
Slide 14: Financial performance
Financial performance ` billion Combined ratio (%)* Return on average Equity (ROAE) (%) 25.1% 23.0% 21.3% 20.8% 100.4% 100.4% 99.7% 98.8% FY2019 FY2020 Q12020 Q12021 FY2019 FY2020 Q12020 Q12021 Profit before Tax (PBT) Growth Profit after Tax (PAT) Growth 21.8% 13.8% 7.1% 28.5% 33.6% 6.2% 7.2% 11.7%
Slide 15: Robust Investment Performance
Robust Investment Performance ` billion Realised Return (%) Investment Book Investment Leverage 2 Realised Return (%) 9.4% 4.09x 4.21x 4.27x 4.23x 7.9% 263.27 281.18 222.31 237.11 1 1 2.3% 1.8% FY2019 FY2020 Q12020 Q12021 FY2019 FY2020 Q12020 Q12021 ⚫ Investment portfolio mix3 for Q12021 : Corporate
Slide 16: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Update- COVID-19 • Industry Overview
Slide 17: Safeguarding environment
Safeguarding environment An overarching Policy on Environment Management Becoming Reduce, Reuse, Saving on Protecting the energy efficient and Recycle water environment • Adapting methods to • Incorporating processes • Engaging in rainwater • Switching to bio-degradable conserve energy and that prom
Slide 18: Contributing the Social Way
Contributing the Social Way Enabling community Addressing Creating value for awareness and customer needs employees development • Providing best-in-class • Hiring from diverse skill sets • Aiming at community well-being experience with healthcare, road safety and • Building capabilities in knowledge
Slide 19: Strong Governance
Strong Governance Robust Structure Code of conduct Data privacy • Conducting business with highest • Detecting, preventing, mitigating • Optimum mix of Executive/Non- standards of compliance and cyber security issues Executive Directors as per Policy on Board Diversity ethics • Enforcing leading pra
Slide 20: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Update- COVID-19 • Industry Overview
Slide 21: Update - COVID-19
COVID 19 Update - COVID-19 ⚫ Continuous communication with customers through emails, tele-calling, SMS and Social Media Platforms undertaken to reassure ⚫ Renewal of motor & health policies Customers ⚫ Claims servicing through e-mails, scan documents etc. ⚫ Dedicated product- Covid-19 benefit and in
Slide 22: Update - COVID-19
COVID 19 Update - COVID-19 ⚫ Work from Home enabled to ensure safety and well-being of our employees across the organization, well before the lockdown ⚫ Accelerated our efforts towards upskilling our employees. Leveraged technology to provide Employees e-learning programs, self-consumption videos &
Slide 23: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Update- COVID-19 • Industry Overview
Slide 24: India Non-life Insurance Market - Large Addressable Market
India Non - life Insurance Market - Large Addressable Market Massive growth opportunity in non-life premiums Significantly underpenetrated Premium as a % of GDP (CY19) (US$) 8.51 4.95 2.67 2.31 2.31 2.01 1.78 0.97 0.94 0.58 India: US$ EAPAC*: US$ World: US$ 26.64 billion 342.02 billion 3376.33 billi
Slide 25: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion 11.7% Industry CAGR (8.1%) 55.8% IL CAGR 54.7% 1,893.02 Market Share of Private Players 1,694.48 17.2% 14.4% (4.2%) (5.3%) 16.6% 50.1% 47.2% 73.3%* 36.6% 410.72 393.29 0.1% 294.98 100.87 FY2001 FY2008 FY2019 FY2020 Q12020 Q12021 Industry GDPI Tariff era
Slide 26: Thank you
9 ICICI ELombard Thank you
Slide 27: Annexure
Annexure icici @.ombard ‘Nibhaye Vaade
Slide 28: Loss Ratio
Loss Ratio Particulars FY2019 FY2020 Q12020 Q12021 Motor OD 59.2% 68.9% 68.2% 62.9% Motor TP 90.8% 84.4% 90.9% 70.2% Health,Travel* & PA 73.5% 69.9% 68.0% 75.5% Fire 83.2% 64.0% 87.6% 94.0% Marine 84.0% 65.3% 58.8% 83.2% Engineering 37.1% 40.7% 58.0% 75.1% Other 55.2% 51.8% 63.5% 49.3% Crop 106.5% 1
Slide 29: Abbreviations
Abbreviations: AI - Artificial Intelligence IRDAI – Insurance Regulatory and Development Authority of India AY – Accident Year ML- Machine Learning CAGR – Compounded Annual Growth Rate NBFC- Non Banking Financial Company CY – Calendar Year NEP – Net Earned Premium EAPAC – Emerging Asia Pacific Marke
Slide 30: Impact of catastrophic events: Historical snapshot
Impact of catastrophic events : Historical snapshot ₹ billion Insured Our Share of Catastrophic Event Year Economic Losses losses *** Insured losses Cyclone Nisarga 2020 ^ ^ ^ Cyclone Amphan*** 2020 1,000.00 15.00 6.7% Maharashtra, Gujarat, Karnataka, Kerala & other 2019 709.70** 20.00 3.5% states F
Slide 31: Reserving Triangle Disclosure – Total
1 Reserving Triangle Disclosure – Total ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2020 Prior AY 11 AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 End of First Year 54.99 20.66 22.53 27.97 35.96 34.16 39.13 49.49 52.41 65.27 72.72 One year later 55.11
Slide 32: Reserving Triangle Disclosure – IMTPIP
Reserving Triangle Disclosure – IMTPIP ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2020 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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