Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Investor Presentation (October 2019)
23 slides from Icici Lombard General Insurance's investor presentation, October 2019
Slide 1: Corporate Presentation
icici €Lombard Corporate Presentation
Slide 2: Agenda
Agenda • Industry Overview • Company Strategy • Financial Performance
Slide 3: Agenda
Agenda • Industry Overview • Company Strategy • Financial Performance
Slide 4: India Non-life Insurance Market - Large Addressable Market
India Non - life Insurance Market - Large Addressable Market Significantly underpenetrated % Premium as a % of GDP (CY18) (US$) ⚫ 4th largest non-life insurance 5.05 4.26 market in Asia and 15th largest 2.62 2.29 2.14 1.92 1.80 globally 1.06 0.97 0.47 ⚫ Non-life Insurance penetration in India was ar
Slide 5: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion Growth 12.9% 1,701 1,507 16.7% 17.7% 955 819 15.5% 482 271 FY2007 FY2011 FY2018 FY2019 H12019 H12020 Industry has grown at CAGR of 17.0% in the last 18 years Source: Latest IRDAI and GI Council 5
Slide 6: Agenda
Agenda • Industry Overview • Company Strategy • Financial Performance
Slide 7: Strategy: Market leadership + Profitable growth
Strategy: Market leadership + Profitable growth ⚫ Leverage our strong brand, competitive advantage and broad network of Leverage and Enhance distribution partners market leadership ⚫ Expand customer base and offerings ⚫ Focus on agency channel, retail health segment, SME insurance market Enhance pro
Slide 8: Comprehensive Product Portfolio
Comprehensive Product Portfolio Product Mix 8% 8% 9% 10% Others 1% 4% 19% 17% 13% Crop 25% 3% 3% 7% Marine 7% 3% 7% 26% 20% 20% Fire 20% Health, Travel* & PA 18% 21% 21% 16% Motor TP 25% 24% 20% 25% Motor OD FY2018 FY2019 H12019 H12020 ⚫ Diversified product mix– motor, health, travel* & personal acc
Slide 9: Health, Travel & PA
Comprehensive Product Portfolio ` billion 77.4% 73.8% 74.2% 79.3% ⚫ Private car, Two wheeler and Commercial Vehicle 15.6% 22.4% 5.0% 12.5% contributed 55.0%, 29.3% and 15.7% respectively of overall Motor Motor GDPI for H12020 and 50.0%, 30.1% and 19.9% 34.08 30.62 30.16 respectively of overall Motor
Slide 10: Property & Casualty
Comprehensive Product Portfolio ` billion Property & Casualty* 56.1% 67.3% 79.3% 59.5% 20.0% 16.9% 9.9% 28.9% ⚫ Increase in reinsurance rates by GIC Re for 8 occupancies under fire segment ⚫ Higher retention on account of increase in rates 22.61 26.44 17.54 13.61 ⚫ Underwriting of small risks for po
Slide 11: Digital Drive: Enabling business transformation
Digital Drive: Enabling business transformation Risk Selection Robotics / Chat BOTs Claims management Artificial Intelligence & File processing Machine Learning Lean Innovation Fraud detection Operations Data Driven decision Technology Customer portal Dashboards making for service Intermediary app &
Slide 12: Strategy: Market leadership + Profitable growth
Strategy: Market leadership + Profitable growth ⚫ Predictive ultimate loss model to improve risk selection ⚫ Diversified exposure across geographies and products Underwriting ⚫ Historically lower proportion of losses from catastrophic events than overall market share ⚫ Spread of risk across panel of
Slide 13: Agenda
Agenda • Industry Overview • Company Strategy • Financial Performance
Slide 14: Financial performance
Financial performance Combined ratio (% ) Return on average Equity (ROAE) (% ) 23.9% 24.4% 102.6% 20.8% 21.3% 22.0% 22.3% 101.1% 101.5% 100.2% 100.1% 98.5% FY2018 FY2019 Q22019 Q22020 H12019 H12020 FY2018 FY2019 Q22019 Q22020 H12019 H12020 ` billion ` billion Profit before Tax (PBT) Grow th Profit a
Slide 15: Robust Investment Performance
Robust Investment Performance ` billion Realised RealisedReturn Return(%) (%) Investment Book Investment Leverage2 9.7% 9.4% 3.90x 4.09x 3.77x 4.09x 239.99 222.31 5.2%1 181.93 192.72 4.4%1 FY2018 FY2019 H12019 H12020 FY2018 FY2019 H12019 H12020 ⚫ Investment portfolio mix3 for H12020 : Corporate bond
Slide 16: Long term value creation (1/2)
Long term value creation (1/2) Industry CAGR 17.3% GDPI (` billion) 10.2% Policies Issued (million) 26.5 144.88 33.07 3.5 FY2008 ** FY2019 FY2008** FY2019 -12.2% Profit After Tax (` billion) Headcount Productivity* (` million) 10.49 14.2 1.03 2.3 FY2008 ** FY2019 FY2008 ** FY2019 GDPI Growth excludi
Slide 17: Long term value creation (2/2)
Long term value creation (2/2) 1 Investment leverage Investment Book (` billion) Investment Income (` billion) 4.09x 2.21x Annualised portfolio return 10.4% 2 222. 31 Annualised equity return 21.1%2 17.55 23. 74 2.19 FY2008 ** FY2019 FY2008 ** FY2019 • Investment portfolio mix3 at FY2019 : Corporate
Slide 18: Thank you
9 ICICI ELombard Thank you
Slide 19: Annexure
Annexure icici @.ombard ‘Nibhaye Vaade
Slide 20: Loss Ratio
Loss Ratio Particulars FY2018 FY2019 Q22019 Q22020 H12019 H12020 Motor OD 53.7% 59.2% 59.7% 71.8% 61.3% 70.0% Motor TP 107.1% 90.8% 90.5% 86.4% 90.5% 88.6% Health,Travel* & PA 64.3% 73.5% 76.4% 71.0% 76.4% 69.6% Crop 135.0% 106.5% 117.1% 111.6% 117.0% 111.6% Fire 43.1% 83.2% 84.6% 75.6% 96.3% 80.8%
Slide 21: Impact of catastrophic events: Historical snapshot
Impact of catastrophic events : Historical snapshot ₹ billion Catastrophic Event Economic Insured Our Share of Year Losses losses Insured losses Maharashtra, Gujarat, 2019 280.00 20.00 3.70% Karnataka, Kerala Floods Cyclone Fani 2019 120.00 12.25 2.69% Kerala floods 2018 300.00 30.00 2.37% Chennai f
Slide 22: Reserving Triangle Disclosure – Total
1 Reserving Triangle Disclosure – Total ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2019 Prior AY 10 AY 11 AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 End of First Year 39.01 15.13 20.66 22.53 27.97 35.96 34.16 39.13 49.49 52.41 65.27 One year later 39.86
Slide 23: Reserving Triangle Disclosure – IMTPIP
Reserving Triangle Disclosure – IMTPIP ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2019 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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