Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Q1 FY2023 Earnings Presentation
32 slides from Icici Lombard General Insurance's earnings presentation, Jul 19, 2022
Slide 1: Cover letter to stock exchanges: Investor Presentation Q1 FY2023
ICIClfJ Lombard - G E NERAL INSURA N C E - Ref. No.: MUM/SEC/63-07/2023 July 19, 2022 To, The Manager The Manager Listing Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot C/1 Dalal Street G Block, Sandra Kurl
Slide 2: Q1 2023 Performance Review
icici €Lombard Q12023 Performance Review
Slide 3: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 4: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 5: ICICI Lombard General Insurance – Pillars of Strength
ICICI Lombard General Insurance – 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 • Leveraging on Artificial • P
Slide 6: Key Highlights
Key Highlights F Particulars FY2021 FY2022 Q12022 Q12023 Y (₹ billion) Actual Actual Actual Actual 2 Gross Written Premium 143.20 185.62 42.67 55.30 Gross Direct Premium Income (GDPI) 140.03 179.77 41.88 53.70 GDPI Growth 5.2% 28.4% 26.8% 28.2% Combined Ratio 99.8% 108.8% 123.5% 104.1% Profit after
Slide 7: Comprehensive Product Portfolio
Comprehensive Product Portfolio Product Mix 0% 9% 9% 10% 10% 3% 0% 4% Others 3% 5% 0% 5% 3% 0% 16% Crop 16% 25% 21% Marine 22% 22% Fire 26% 28% 24% Health, Travel & PA 23% 17% 17% Motor TP 26% 23% Motor OD 17% 16% FY2021 FY2022 Q12022 Q12023 Diversified product mix– motor, health, travel & persona
Slide 8: Comprehensive Product Portfolio - Motor
Comprehensive Product Portfolio - Motor ₹ billion 65.8% 70.9% 70.20 82.80 Motor GDPI Mix 68.5% 73.8% Type Q12022 Q12023 Motor 14.01 17.82 40.68 42.12 36.85 33.35 Private car 55.8% 47.7% 8.48 9.34 Two Wheeler 27.6% 27.7% 7.06 6.95 FY2021 FY2022 Q12022 Q12023 Commercial Vehicle 16.6% 24.6% Loss Ratio
Slide 9: Comprehensive Product Portfolio – Health, Travel & PA
Comprehensive Product Portfolio – Health, Travel & PA ₹ billion Health, Travel & PA GDPI Mix 78.0% 91.7% Health, Travel & PA -9.3% 32.6% Type Q12022 Q12023 Individual 19.0% 15.9% 148.4% 73.7% Group – Others 14.7% 22.9% 40.07 35.4% 38.5% 30.21 Group Employer-Employee 66.1% 61.2% 14.95 10.79 Mass 0.2%
Slide 10: Comprehensive Product Portfolio – P&C
Comprehensive Product Portfolio – P&C ₹ billion Market share in commercial lines 63.2% 59.4% Property & Casualty (P&C) Market Share Property & Casualty 27.8% Product Q12022 Q12023 23.5% Fire 13.7% 13.4% 77.5% 60.3% Engineering 17.8% 16.0% 50.24 28.6% 14.3% 39.29 Marine Cargo 20.1% 19.7% 19.54 Liab
Slide 11: Digital Opportunities
Digital Opportunities Cloud Adoption Policy Issuance First large insurer to move all core applications to the Cloud 6.2 Mn Policies sourced Improved agility, increased reliability and continuous 97.1% policies issued innovation electronically in Q12023 (97.3% in FY2022) Claims & Servicing AI & ML So
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 • Industry Overview
Slide 14: Financial performance
Financial performance ₹ billion Combined ratio (% ) Return on average Equity (ROAE) (% ) 123.5% 21.7% 108.8% 104.1% 99.8% 14.7% 15.0% 9.4% FY2021 FY2022 Q12022 Q12023 FY2021 FY2022 Q12022 Q12023 Profit before Tax (PBT) Profit after Tax (PAT) -13.8% -13.7% 14.73 19.54 12.71 16.84 80.1% 79.6% 4.65 3.4
Slide 15: Robust Investment Performance
Robust Investment Performance ₹ billion Realised Return (%) Realised Return (%)Book Investment Investment Leverage 2 Realised Return (% ) 4.09x 4.23x 4.34x 4.18x 8.45% 387.86 398.34 7.85% 371.07 308.92 1 2.46% 1 1.66% FY2021 FY2022 Q12022 Q12023 FY2021 FY2022 Q12022 Q12023 Investment portfolio mix
Slide 16: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 17: Safeguarding environment
Safeguarding environment An overarching Policy on Environment Management Responsible Environment friendly Protecting the consumption business practices environment • Adopting green measures for • Adapting methods to conserve natural • Reducing carbon footprint by integrating digital communication ac
Slide 18: Contributing the Social Way
Contributing the Social Way Addressing Creating value for Enabling community customer needs employees awareness and development • Hiring from diverse skill sets; Employee • Aimed at community well-being in areas of skill • Providing best-in-class friendly policies development, sustainable livelihood
Slide 19: Strong Governance
Strong Governance Robust Structure Code of conduct Data protection • Optimum mix of Executive/Non-Executive • Conducting business with highest • Dedicated Information Security Directors as per Policy on Board Diversity standards of compliance and ethics Council • Performance evaluation of Board, Com
Slide 20: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 21: 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 9.10 Premium as a % of GDP (CY21) 5.20 India: US$ EA*: US$ World: US$ 2.20 2.20 2.20 30.30 billion 399.68 billion 3863.03 billion 1.90 1.70 1.00 0.90 0.50 Non-Li
Slide 22: Industry has witnessed steady growth
Industry has witnessed steady growth ₹ billion Industry CAGR 11.1%# IL CAGR 28.4%# 49.3% 49.7% Market Share of Private Players** 1,987.15 2,207.72 15.8% 11.7% 23.0%# 16.6% 28.2%# 73.3%* 51.8% 47.6% 36.6% 544.91 443.04 0.1% 294.98 100.87 FY2001 FY2008 FY2021 FY2022 Q12022 Q12023 Tariff era Non-Tariff
Slide 23: Thank you
9 ICICI ELombard Thank you
Slide 24: Annexure
Annexure icici € Lombard Nibhaye Vaade
Slide 25: Loss Ratio
Loss Ratio Particulars FY2021 FY2022 Q12022 Q12023 Motor OD 62.2% 68.1% 65.3% 73.6% Motor TP 69.7% 74.0% 72.1% 73.9% Health,Travel & PA 78.0% 91.7% 148.4% 73.7% Crop 111.2% 107.9% 110.4% 63.4% Fire 63.7% 53.1% 86.5% 57.7% Marine 83.3% 77.6% 83.6% 67.0% Engineering 57.7% 69.3% 76.1% 62.2% Other 52.7%
Slide 26: Abbreviations & Glossary
Abbreviations & Glossary: AI - Artificial Intelligence ML- Machine Learning API – Application Programming Interface Motor TP – Motor Third Party AY – Accident Year Mn - Million Banca – Bancassurance NEP – Net Earned Premium BRSR – Business Responsibility and Sustainability Reporting NWP – Net Writte
Slide 27: 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 Tauktae* 2021 150.00 15.00 10.2%** Cyclone Yaas* 2021 200.00 7.00 0.4%** Cyclone Amphan* 2020 1,000.00 15.00 8.0%** Maharashtra, Gujarat, Karnatak
Slide 28: Reserving Triangle Disclosure – Total
Reserving Triangle Disclosure – Total1 ₹ billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2022 Prior* AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 End of First Year 105.47 34.23 44.87 44.37 49.39 59.24 62.46 77.00 87.33 83.76 101.17 One year later 105
Slide 29: Reserving Triangle Disclosure – IMTPIP
Reserving Triangle Disclosure – IMTPIP ₹ billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2022 AY08 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 3.54 Three years later 5.81 4.49 5.52 3.61 Four years later 6.
Slide 30: Reserving Triangle Disclosure – Motor-TP (excluding IMTPIP)
Reserving Triangle Disclosure – Motor-TP (excluding IMTPIP) Incurred Losses and Allocated Expenses (Ultimate Movement) ₹ billion As at March 31, 2022 Prior* AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 End of First Year 11.06 5.81 10.74 12.63 15.97 17.05 19.98 24.41 31.55 25.15 28.07
Slide 31: Reserving Triangle Disclosure – Others (excluding Motor-TP)
Reserving Triangle Disclosure – Others (excluding Motor-TP) Incurred Losses and Allocated Expenses (Ultimate Movement) ₹ billion As at March 31, 2022 Prior* AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 End of First Year 94.40 28.43 34.13 31.74 33.42 42.19 42.48 52.58 55.78 58.61 73.11
Slide 32: 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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