Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Investor Presentation (November 2017)
25 slides from Icici Lombard General Insurance's investor presentation, Nov 15, 2017
Slide 1: Corporate Presentation
Corporate Presentation Gicici ELombard ‘ Nibhaye Vaade
Slide 2: Agenda
Agenda Industry Overview Operating Performance Financial Performance 2
Slide 3: Agenda
Agenda Industry Overview Operating Performance Financial Performance 3
Slide 4: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion 0% 33% 37% 42% 18.1% 1,276 15.8% 17.7% 469 261 98 FY01 FY07 FY11 FY17 Mkt Share of Pvt. Multi-Product Players CAGR GDPI Industry has grown at CAGR of 17% in the last 15 years Industry growth @ 32.4% for FY2017 & 19.5% for H1 2018 Source: IRDAI 4
Slide 5: India Non-life Insurance Market- Large Addressable Market
India Non-life Insurance Market- Large Addressable Market Significantly underpenetrated Premium as a % of GDP (US$) (%) (CY16) 4.29 2.74 2.58 4th largest non-life insurance 2.37 World: 2.81 1.81 1.76 1.70 market in Asia 1.36 0.77 0.51 GDPI growth at CAGR of 17% from FY01 to FY17 Non-life Insur
Slide 6: Industry product mix
Industry product mix ` billion GDPI 964 1,276 607 726 8% 6% 8% 7% 6% 3% 16% 16% 18% Others 2% 12% 3% 2% 10% 8% 8% Crop 28% Marine 27% 27% 27% F ire H e alth & PA 44% 39% 38% 38% Motor FY 16 FY 17 H1 2017 H1 2018 Motor, Crop and Health contributing to growth in the industry 6 Source: IRDAI
Slide 7: Agenda
Agenda Industry Overview Operating Performance Financial Performance 7
Slide 8: Market leadership + Profitable growth
Market leadership+ Profitable growth #1 Private Non-life Insurer across Cycles Multi-Product Multi-Channel Pan-India Distribution Focused Digital Drive Robust Risk Framework Superior Investment and Financial Performance 8
Slide 9: Leadership position across product segments
Leadership position across product segments Rank by GDPI among Private Sector FY2015 FY2016 FY2017 H1 2018 Multi- Product insurance Motor OD* #1 #1 #1 #1 Motor TP* #1 #1 #1 #1 Health and Personal Accident #1 #1 #1 #1 Crop #1 #1 #1 Fire #1 #1 #1 #1 Marine #2 #1 #1 #1 Engineering #1 #1 #1 #1 *Motor OD
Slide 10: Comprehensive Product Portfolio
Comprehensive Product Portfolio 9% 7% 9% 9% Product Mix 7% 4% 20% 21% 25% oth ers 8% 3% 3% 7% 7% 3% C rop 21% 7% 20% 21% Marine 18% 20% Fire 17% 15% 16% Health & PA 31% Motor TP 26% 24% 22% Motor OD FY 16 FY 17 H1 2017 H1 2018 Diversified product mix– motor, health & personal accident, crop, fire,
Slide 11: Comprehensive Product Portfolio: Motor and Health & PA
Comprehensive Product Portfolio ` billion 80. 2% 79. 2% 81. 4% 78. 7% 9 .4% OD TP Increasing focus on relatively profitable segments 1 6 .3% Motor 27.6 Continued growth from Long Term Two Wheeler 25.2 17.8 16.3 13.0 8.5 14.5 10.4 (LTTW) FY 16 FY 17 H1 2017 H1 2018 Loss Ratio Growth 83.2% 90.2% 9
Slide 12: Comprehensive Product Portfolio: Crop and Property
Comprehensive Product Portfolio ` billion 140. 0% 84. 2% 88. 6% 114. 1% Diversification through strategic risk 3 6 .6% selection to mitigate region specific concentration Crop 263.0% 21. 5 16. 3 11. 9 Covered farmers in 7 states and 56 5. 9 districts in Kharif season under PMFBY in FY 16 FY 17 H
Slide 13: Multi-Channel Pan India Distribution
Multi-Channel Pan India Distribution H1 2018 One of the largest direct sales force* Policies issued through Online channels 6.9% 6.4% increased by 35.8% in H12018 over Bank Partners H12017 11.1% Direct Business 0.8 million policies in H1 2018 from 0.6 million policies in H1 2017 Brokers Part
Slide 14: Digital Drive: Enabling business transformation
Digital Drive :Enabling business transformation Risk selection Robotics / ChatBOTs Claims management File processing Artificial Intelligence Fraud detection Lean Innovation Operations Technology Dashboards for service & Analytics Customer portal excellence Data Driven decision Intermediary app makin
Slide 15: Risk Framework
Risk Framework Predictive ultimate loss model to improve risk selection Underwriting Diversified exposure across geographies and products Historically lower proportion of losses from catastrophic events than overall market share Recent flood claims (net) of ` 0.18 bn Spread of risk across
Slide 16: Agenda
Agenda Industry Overview Operating Performance Financial Performance 16
Slide 17: Key Highlights
Key Highlights Particulars FY2016 FY2017 H1 2017 H1 2018 (` billion) Gross Written Premium(GWP) 82.96 109.60 57.07 66.29 Gross Direct Premium Income 80.91 107.25 55.65 64.94 (GDPI) GDPI Growth 21.2% 32.6% 39.2% 16.7% Combined ratio 106.9% 103.9% 106.0% 102.7% Profit After Tax (PAT) 5.07 7.02 3.02 4.
Slide 18: Robust Investment Performance
Robust Investment Performance Investment Book (` bn) Realised Return 3.64X 3.88X 3.84X 3.93X 10.8% 167.6 149.5 135.6 10.3% 10.3% 115.6 10.0% FY16 FY17 H1 2017 H1 2018 FY16 FY17 H1 2017* H1 2018* Investment Leverage# Largest investment book among private non-life Insurer Investment portfolio mix
Slide 19: Financial performance
Financial performance Combined Ratios (%) Return on average Equity (%) 106.9% 20.6% 20.3% 106.0% 17.9% 16.9% 103.9% 102.7% FY16 FY17 H1 2017 H1 2018 FY16 FY17 H1 2017 H1 2018 Profit After Tax Solvency ` billion 38.3% 218% 210% 38.5% 203% 7.0 5.1 4.2 182% 3.0 FY16 FY17 H1 2017 H1 2018 Growth FY16 FY1
Slide 20: Thank you
Thank you 20 /gicici Elombard \ J Nibhaye Vaade
Slide 21: Annexure
Annexure Icici Lombard 71 1 Nibhaye Vaade
Slide 22: Loss ratio
Loss ratio Particu lars FY 2016 FY 2017 H1 2017 H1 2018 Motor OD 65. 6% 64. 2% 71. 2% 58. 0% Motor TP 97. 7% 97. 4% 94. 2% 104. 7% Health 84. 7% 97. 9% 103. 0% 80. 4% PA 64. 3% 41. 3% 54. 0% 31. 3% C rop 140. 0% 84. 2% 88. 6% 114. 1% Fire 63. 6% 68. 4% 68. 1% 60. 8% Marin e 97. 5% 83. 9% 79. 6% 71.
Slide 23: Conservative Reserving Philosophy
Conservative Reserving Philosophy Incurred Losses and Allocated Expenses (Ultimates Movement) ` billion A s at M ar c h 31, 2017 Pr i or A Y 08 A Y 09 A Y 10 A Y 11 A Y 12 A Y 13 A Y 14 A Y 15 A Y 16 A Y 17 En d of Fi r st Y ear 14.57 9.75 12.85 15.13 20.66 22.53 27.97 35.96 34.16 39.13 49.49 O n e
Slide 24: Reserving Triangle Disclosures-IMTPIP
Reserving Triangle Disclosures-IMTPIP Incurred Losses and Allocated Expenses (Ultimates Movement) ` billion A s a t M a r c h 31, 2017 A Y 08 A Y 09 A Y 10 A Y 11 A Y 12 A Y 13 En d of Fi r st Y ea r 2.71 O n e yea r l a t er 3.85 2.72 Two yea r s l a t er 4.49 3.85 2.73 Th r ee yea r s l a t er 5.8
Slide 25: 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 forwar
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