Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Investor Presentation (September 2021)
36 slides from Icici Lombard General Insurance's investor presentation, Sep 9, 2021
Slide 1: Intimation letter to stock exchanges
Ref. No.: MUM/SEC/145-09/2022 September 9, 2021 To, The Manager The Manager Listing Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Tower Exchange Plaza, 5th Floor, Plot C/1, Dalal Street G Block, Bandra-Kurla Complex Mumbai - 400001 Mumbai - 400
Slide 2: Corporate Presentation
Corporate Presentation September 9, 2021
Slide 3: Agenda
Agenda • Industry Overview • Company Strategy • Scheme of Arrangement • ESG Initiatives
Slide 4: Agenda
Agenda • Industry Overview • Company Strategy • Scheme of Arrangement • ESG Initiatives
Slide 5: 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 (CY20) (US$) 9.00 5.20 India: US$ EAPAC*: US$ World: US$ 2.50 2.40 2.30 1.90 1.80 26.74 billion 361.80 billion 3489.61 billion 1.00 1.00 0.
Slide 6: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion # 11.5% # 5.2% Industry CAGR ^# (8.1%) 49.4% # 5.2% 49.3% IL CAGR # 49.3% 1,987.35 1,889.17 Market Share of Private Players** 1,694.48 17.2% 14.4% 16.6% 73.3%* 36.6% 0.1% 294.98 100.87 FY2001 FY2008 FY2019 FY2020 FY2021 Tariff era Non-Tariff era Industr
Slide 7: Industry business overview: Product Mix
Industry business overview Product Mix 6% 6% 14% 19% 3% 17% 16% 0% 6% 10% 2% 2% Others 13% 8% 10% Crop 21% Marine 20% Fire 30% 32% 9% Health Travel & PA 16% Motor TP 12% Motor OD 23% 21% 29% 28% 14% 13% FY2001 FY2008 FY2020 FY2021 6
Slide 8: Agenda
Agenda • Industry Overview • Company Strategy • Scheme of Arrangement • ESG Initiatives
Slide 9: ICICI Lombard - Strategy
ICICI Lombard - Strategy Diversified Product Mix and Distribution Excellence in Customer service and Technology Robust Risk Framework Financial Performance & Sustained Value Creation 8
Slide 10: ICICI Lombard - Strategy
ICICI Lombard - Strategy Diversified Product Mix and Distribution Excellence in Customer service and Technology Robust Risk Framework Financial Performance & Sustained Value Creation 9
Slide 11: Diversified Product Mix and Distribution
Diversified Product Mix and Distribution Rank amongst Private Sector Multi- Product insurance (GDPI basis) Product Mix 13% 8% 9% Line of Business FY2020 FY2021 14% 4% 0% 3% 0% 0% 0% 0% 7% 12% Others 16% Motor OD #1 #1 13% Crop 40% Marine 25% 22% Motor TP #2 #1 Fire 28% Health Travel & PA 10% Health,
Slide 12: Comprehensive Product Portfolio - Motor
Comprehensive Product Portfolio - Motor ` billion 76.5% 65.8% 5.7% 3.4% Motor GDPI Mix Type Q12021 Q12022 66.4% 69.3% Motor Private car 59.2% 51.6% 36.89 36.85 33.35 -22.4% 1.9% 30.99 Two Wheeler 26.0% 30.0% Commercial Vehicle 14.8% 18.4% 5.96 5.51 5.76 5.93 FY2020 FY2021 Q12021 Q12022 Loss cost d
Slide 13: Comprehensive Product Portfolio - Health, Travel & PA
Comprehensive Product Portfolio – Health, Travel & PA ` billion 69.9% 78.0% 12.2% Health, Travel & PA -9.3% Health, Travel & PA GDPI Mix 75.5% 153.2% -12.2% 23.9% Type Q12021 Q12022 33.32 30.21 Individual 20.1% 20.2% Group – Others 10.8% 12.5% 7.97 9.87 Group Employer-Employee 69.1% 67.2% FY2020 FY2
Slide 14: Comprehensive Product Portfolio - P&C
Comprehensive Product Portfolio – P&C ` billion 57.4% 63.2% Market share across all commercial lines Property & Casualty 20.4% 23.5% Property & Casualty (P&C) Market Share 74.5% 71.1% Product Q12021 Q12022 39.29 20.5% 18.6% Fire 11.7% 12.6% 31.83 Engineering 13.9% 16.8% 13.29 15.77 Marine Cargo 18
Slide 15: ICICI Lombard - Strategy
ICICI Lombard - Strategy Diversified Product Mix and Distribution Excellence in Customer service and Technology Robust Risk Framework Financial Performance & Sustained Value Creation 14
Slide 16: Digital Opportunities
Digital Opportunities Service Excellence Policy Issuance Claims & Servicing Headcount Productivity 4.1 Mn Policies sourced in 0.4 Mn Claims honored in 14.8% 13 year CAGR Q12022 Q12022 (FY2008 to FY2021) 97.3% issued electronically 82.1% Motor OD claims through InstaSpect in June in Q12022 (97.0% in
Slide 17: ICICI Lombard - Strategy
ICICI Lombard - Strategy Diversified Product Mix and Distribution Excellence in Customer service and Technology Robust Risk Framework Financial Performance & Sustained Value Creation 16
Slide 18: 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 19: ICICI Lombard - Strategy
ICICI Lombard - Strategy Diversified Product Mix and Distribution Excellence in Customer service and Technology Robust Risk Framework Financial Performance & Sustained Value Creation 18
Slide 20: Financial performance
Financial performance ` billion Combined ratio (% ) Return on average Equity (ROAE) (% ) 121.3% 25.1% 100.4% 99.8% 99.7% 21.7% 20.8% 8.1% FY2020 FY2021 Q12021 Q12022 FY2020 FY2021 Q12021 Q12022 Profit before Tax (PBT) Growth Profit after Tax (PAT) Growth 15.1% 23.4% 14.73 19.54 11.94 16.97 -61.9% -6
Slide 21: Sustainable value creation (1/2)
Sustainable value creation (1/2) ` billion GDPI Policies issued (millions) Industry CAGR : 15.8% Industry CAGR : xx.x% 11.4%* 140.03 21.7 33.07 3.5 FY2008 FY2021 FY2008 FY2021 PAT Headcount Productivity (₹ millions) Industry CAGR** 13.68 14.73 2.26 1.03 FY2008 FY2021 FY2008 FY2021 Solvency Ratio a
Slide 22: Sustainable value creation (2/2)
Sustainable value creation (2/2) ` billion Investment Book Investment Income 3 Investment Leverage 1 Nifty Equity return 9.9% Annualised portfolio return 10.4%3 2 Industry CAGR : 18.0% 4.09x Annualised equity return 18.7% 3 308.92 21.96 2.21x 22.74 2.19 FY2008 FY2021 FY2008 FY2021 Investment portf
Slide 23: Agenda
Agenda • Industry Overview • Company Strategy • Scheme of Arrangement • ESG Initiatives • Response to Covid-19
Slide 24: Update - Scheme of Arrangement
Update- Scheme of Arrangement Regulatory Filings & Approvals Filed an ‘Application for in-principle’ approval to IRDAI on August 26, 2020 Communication received from IRDAI, to approach other Regulatory agencies such as CCI, RBI and SEBI to seek necessary approval while in-principle approval under pr
Slide 25: Update - Scheme of Arrangement
Update- Scheme of Arrangement Regulatory Filings & Approvals BSE Limited and NSE Limited, issued their 'No adverse observation/ No-objection', on the proposed scheme on November 2, 2020 and November 3, 2020 respectively Received in-principle approval from IRDAI on November 27, 2020 Application made
Slide 26: Agenda
Agenda • Industry Overview • Company Strategy • Scheme of Arrangement • ESG Initiatives • Response to Covid-19
Slide 27: Safeguarding environment
Safeguarding environment An overarching Policy on Environment Management Responsible Environment friendly Protecting the consumption business practices environment • Adapting methods to conserve natural • Reducing carbon footprint by • Adopting green measures for resources and energy integrating dig
Slide 28: 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 • Hiring from diverse skill sets; Employee friendly policies development, sustainable livelihood
Slide 29: Strong Governance
Strong Governance Robust Structure Code of conduct Data protection • Optimum mix of Executive/Non- • Dedicated Information Security • Conducting business with highest Executive Directors as per Policy Council standards of compliance and on Board Diversity ethics • Enforcing leading practices and • P
Slide 30: Thank you
9 ICICI ELombard Thank you
Slide 31: Loss Ratio
Loss Ratio Particulars FY2020 FY2021 Q12021 Q12022 Motor OD 68.9% 62.2% 62.9% 68.1% Motor TP 84.4% 69.7% 70.2% 70.6% Health,Travel & PA 69.9% 78.0% 75.5% 153.2% Fire 64.0% 63.7% 94.0% 80.3% Marine 65.3% 83.3% 83.2% 76.8% Engineering 40.7% 57.7% 75.1% 74.3% Other 52.0% 52.7% 53.3% 54.2% Total 72.9% 6
Slide 32: Abbreviations
Abbreviations: AI - Artificial Intelligence IoT – Internet of Things API – Application Programming Interface IRDAI – Insurance Regulatory and Development Authority of India AY – Accident Year ML- Machine Learning BOT- Built-Operate-Transfer NCLT- National Company Law Tribunal CAGR – Compounded Annua
Slide 33: Impact of catastrophic events: Historical snapshot
Impact of catastrophic events : Historical snapshot ₹ billion Economic Insured Our Share of Catastrophic Event Year Losses losses* Insured losses Cyclone Amphan* 2020 1,000.00 15.00 7.1% Maharashtra, Gujarat, Karnataka, Kerala & other 2019 709.70** 20.00 3.4% states Floods Cyclone Fani 2019 120.00 1
Slide 34: Reserving Triangle Disclosure – Total
1 Reserving Triangle Disclosure – Total ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2021 Prior AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 End of First Year 75.77 22.53 27.97 35.96 34.16 39.13 49.49 52.41 65.27 72.72 70.56 One year later 76.31
Slide 35: Reserving Triangle Disclosure – IMTPIP
Reserving Triangle Disclosure Incurred Losses and Allocated Expenses (Ultimate Movement) – IMTPIP ` billion As at March 31, 2021 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
Slide 36: 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
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