Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Investor Presentation (November 2022)
35 slides from Icici Lombard General Insurance's investor presentation, Nov 29, 2022
Slide 1: Exchange filing cover letter: Corporate presentation
Ref. No.: MUM/SEC/163-11/2023 November 29, 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, Bandra Kurla Complex, Mumbai – 400 001 Mumbai – 4
Slide 2: Corporate Presentation
icici €Lombard Corporate Presentation
Slide 3: Agenda
Agenda • Industry Overview • Company Strategy • ESG Initiatives
Slide 4: Agenda: Industry Overview
Agenda • Industry Overview • Company Strategy • 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 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 3,863.03 billion 1.90 1.70 1.00 0.90 0.50 Non-L
Slide 6: Industry has witnessed steady growth
Industry has witnessed steady growth Industry CAGR ₹ billion IL CAGR #11.1% 49.3% 49.7% ** Market Share of Private Players #28.4% 1,987.15 2,207.72 15.8% 11.7% 16.6% 36.6% 0.1% 73.3%* 294.98 100.87 FY2001 FY2008 FY2021 FY2022 Tariff era Non-Tariff era *IL CAGR FY2003 – FY2008 Industry GDPI **Excludi
Slide 7: Industry business overview
Industry business overview Product Mix 6% 7% 14% 19% 3% 16% 13% 0% 6% 2% 2% Others 10% 10% 10% 13% Crop Marine 21% 20% Fire 32% 36% 9% Health Travel & PA 16% Motor TP 12% Motor OD 21% 20% 29% 28% 13% 12% FY2001 FY2008 FY2021 FY2022 6
Slide 8: Agenda: Company Strategy
Agenda • Industry Overview • Company Strategy • 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 Mix Product insurance (GDPI basis) 9% 9% Line of Business FY2021 FY2022 13% 14% 3% 0% 4% 0% 0% 0% 3% 7% Others Motor OD #1 #1 16% 16% 13% Crop 40% Marine Motor TP #1 #1 22% 22% 28% Fire Health, Travel & PA #1 #2 Heal
Slide 12: 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 11
Slide 13: Comprehensive Product Portfolio - Motor
Comprehensive Product Portfolio - Motor ₹ billion 65.8% 70.9% 68.4% 72.0% 70.20 82.80 32.46 37.09 Motor GDPI Mix 42.12 Type H12022 H12023 Motor 33.35 Private car 56.5% 49.6% 36.85 40.68 15.82 19.39 16.64 17.70 Two Wheeler 26.5% 27.0% FY2021 FY2022 H12022 H12023 Commercial Vehicle 17.0% 23.4% Loss Ra
Slide 14: Comprehensive Product Portfolio - Health, Travel & PA
Comprehensive Product Portfolio – Health, Travel & PA ₹ billion Health, Travel & PA GDPI Mix 78.0% 91.7% 109.3% 77.9% Health, Travel & PA -9.3% 32.6% 26.3% 40.6% Type H12022 H12023 Individual 21.6% 18.1% Group – Others 19.1% 26.4% 40.07 30.21 28.34 Group Employer-Employee 59.1% 55.4% 20.15 Mass 0.2%
Slide 15: Comprehensive Product Portfolio - P&C
Comprehensive Product Portfolio – P&C Market share in commercial lines ₹ billion 63.2% 59.4% 72.8% 59.6% Property & Casualty (P&C) Market Share Property & Casualty 23.5% 27.8% 31.1% 16.0% Product H12022 H12023 Fire 13.2% 12.8% Engineering 15.7% 15.1% 39.29 50.24 32.13 27.69 Marine Cargo 18.4% 18.6
Slide 16: Digital Opportunities
Digital Opportunities Cloud Adoption Policy Issuance First large insurer to move all 12.8 Mn Policies sourced in core applications to the Cloud H12023 Improved agility, increased reliability and continuous 96.8% policies issued innovation electronically in H12023 (97.3% in FY2022) Claims & Servicing
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) (% ) 114.3% 24.5% 21.7% 21.0% 108.8% 19.9% 105.3% 105.1% 104.6% 14.7% 15.2% 99.8% # # FY2021 FY2022 Q22022 Q22023 H12022 H12023 FY2021 FY2022 Q22022 Q22023 H12022 H12023 Profit before Tax (PBT) Profit after Tax (PAT)
Slide 21: Sustainable value creation (1/2)
Sustainable value creation (1/2) GDPI (₹ billion) Policies issued (million) Industry CAGR : 15.5% Industry CAGR : 10.5%* 179.77 29.31 33.07 3.5 FY2008 FY2022 FY2008 FY2022 PAT (₹ billion) Headcount Productivity (₹ million) Industry CAGR : -# 12.71 14.10 2.26 1.03 FY2008 FY2022 FY2008 FY2022 Solven
Slide 22: Sustainable value creation (2/2)
Sustainable value creation (2/2) ₹ billion 3 Investment Book Investment Income Nifty Equity return 10.50% Investment Leverage 1 2 3 Industry CAGR : 18.1% Annualised portfolio return 10.10% 3 4.23x Annualised equity return 17.88% 387.86 30.00 2.21x 23.74 2.19 FY2008 FY2022 FY2008 FY2022 Investment
Slide 23: Agenda: ESG Initiatives
Agenda • Industry Overview • Company Strategy • ESG Initiatives
Slide 24: 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 25: 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 26: 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 27: Thank you
9 ICICI ELombard Thank you
Slide 28: Loss Ratio
Loss Ratio Particulars FY2021 FY2022 Q22022 Q22023 H12022 H12023 Motor OD 62.2% 68.1% 62.8% 74.3% 64.0% 74.0% Motor TP 69.7% 74.0% 74.6% 66.6% 73.4% 70.1% Health,Travel & PA 78.0% 91.7% 71.4% 81.8% 109.3% 77.9% Crop 111.2% 107.9% 126.5% 85.2% 125.2% 84.3% Fire 63.7% 53.1% 64.6% 40.4% 75.1% 48.5% Mar
Slide 29: 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 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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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