Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — 9M FY2019 Earnings Presentation
22 slides from Icici Lombard General Insurance's earnings presentation, Jan 21, 2019
Slide 1: Investor Presentation cover letter to stock exchanges
lC/Cl~Lombard - G ENERAL INSURANCE - Ref. No.: MUM/SEC/201-01/2019 January 21,2019 To, The Manager The Manager Listing Department Listing Department BSE Limited The National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Tower Exchange Plaza, 51h Floor, Plot C/1, Dalal Street G Block, Bandra-Kurla
Slide 2: 9M2019 Performance Review
IcictEtombard GENERAL INSURANCE 9M2019 Performance Review
Slide 3: Agenda
Agenda • Company Strategy • Financial Performance • Industry Overview
Slide 4: Agenda
Agenda • Company Strategy • Financial Performance • Industry Overview
Slide 5: 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 and SME insurance market Enhance
Slide 6: Key Highlights
Key Highlights Particulars FY2017 FY2018 9M2018 9M2019 (` billion) Actual Actual Actual Actual Gross Written Premium 109.60 126.00 96.30 112.61 Gross Direct Premium Income (GDPI) 107.25 123.57 94.31 110.03 GDPI Growth 32.6% 15.2% 17.0% 16.7% Combined Ratio 103.9% 100.2% 100.4% 98.7% Profit after Tax
Slide 7: Comprehensive Product Portfolio: Product Mix
Comprehensive Product Portfolio Product Mix 9% 9% 9% 10% 20% 19% 20% 19% Others 3% 3% 3% 3% Crop 7% 7% 8% 8% Marine 19% 19% 18% 18% Fire 17% 18% 17% 19% Health & PA Motor TP 26% 25% 25% 23% Motor OD FY2017 FY2018 9M2018 9M2019 Diversified product mix– motor, health & personal accident, crop, fire,
Slide 8: Comprehensive Product Portfolio: Motor, Health & PA
Comprehensive Product Portfolio ` billion 7 8 .9% 7 7 .4% 7 7 .6% 7 3 .1% 9 .4% 1 5.6% 1 6.4% 1 6.5% Private car, Two wheeler and Commercial Vehicle contributed 50.1%, 28.9% and 21.0% respectively of Motor Motor GDPI for 9M2019 and 51.4%, 30.9% and 17.7% 27.6 30.6 24.8 21.9 23.2 21.2 17.8 16.3 res
Slide 9: Comprehensive Product Portfolio: Property & Casualty
Comprehensive Product Portfolio ` billion 6 7 .7% 5 1 .4% 5 8 .9% 6 5 .8% Property & Casualty 1 9 .1% 2 1 .3% 2 7 .9% 1 6 .5% Underwriting of small risks for portfolio diversification and pricing 24.3 22.5 20.1 19.3 Focus on risk mitigation through value added services FY2017 FY2018 9M2018 9M201
Slide 10: Digital Drive: Enabling business transformation
Digital Drive: Enabling business transformation Risk Selection Robotics / Chat BOTs Claims management Artificial Intelligence & File processing Machine Learning Lean Fraud detection Innovation Operations Data Driven decision Technology Customer portal Dashboards making for service Intermediary app &
Slide 11: 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 12: Agenda
Agenda • Company Strategy • Financial Performance • Industry Overview
Slide 13: Robust Investment Performance
Robust Investment Performance ` billion 1 Realised RealisedReturn Return(%) (%) Investment Book Investment Leverage 10. 0% 9. 7% 2 2 3.90x 3.92x 7. 7% 3.88x 7. 3% 204.45 181.93 149.50 FY2017 FY2018 9M2018 9M2019 FY2017 FY2018 9M2019 Investment portfolio mix3 at 9M2019 : Corporate bonds (51.0%), G-
Slide 14: Financial performance
Financial performance C ombined ratio (%) Retu rn on average Equity (ROAE) (%) 103. 9% 21. 9% 21. 5% 22. 7% 20. 3% 20. 8% 19. 0% 100. 2% 100. 4% 98. 7% 96. 0% 95. 9% FY2017 FY2018 Q32018 Q32019 9M2018 9M2019 FY2017 FY2018 Q32018 Q32019 9M2018 9M2019 ` billion ` billion Profit before Tax (PBT) Growth
Slide 15: Agenda
Agenda • Company Strategy • Financial Performance • Industry Overview
Slide 16: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion 1 ,507 Gr owth 13.1% 1 ,230 1 ,088 18.1% 15.8% 469 261 FY2007 FY2011 FY2018 9M 2018 9M 2019 Industry has grown at CAGR of 17% in the last 17 years Source: Latest IRDAI and GI Council 15
Slide 17: India Non-life Insurance Market - Large Addressable Market
India Non - life Insurance Market - Large Addressable Market Significantly underpenetrated (%) Premium as a % of GDP (CY17) (US$) 4th largest non-life insurance World: 2.80 5.00 4.28 market in Asia 2.74 2.36 2.34 1.89 1.77 1.04 0.93 Non-life Insurance penetration 0.46 in India was around 1/3rd o
Slide 18: Thank you
tcici1€ Lombard —GENERAL INSURANCE— Thank you
Slide 19: Annexure
Annexure
Slide 20: Loss Ratio
Loss Ratio Particulars FY2017 FY2018 Q32018 Q32019 9M2018 9M2019 Motor OD 64.2% 53.7% 51.1% 53.0% 55.5% 58.4% Motor TP 97.4% 107.1% 106.0% 91.7% 105.1% 90.9% Health 97.9% 77.6% 73.5% 90.4% 77.9% 87.0% PA 41.3% 23.9% 30.1% 15.4% 30.9% 38.6% Crop 84.2% 135.0% 98.1% 116.3% 110.7% 116.9% Fire 68.4% 43.1
Slide 21: Reserving Triangle Disclosure – Total
1 Reserving Triangle Disclosure – Total ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2018 Prior AY 09 AY 10 AY 11 AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 End of First Year 25.23 12.85 15.13 20.66 22.53 27.97 35.96 34.16 39.13 49.49 52.41 One year later 26.15
Slide 22: Reserving Triangle Disclosure – IMTPIP
Reserving Triangle Disclosure – IMTPIP Incurred Losses and Allocated Expenses (Ultimate Movement) ` billion As at March 31, 2018 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
ICICI Lombard General Insurance Company — 9M FY2019 Earnings Presentation on 6ix