Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — 9M FY2021 Earnings Presentation
32 slides from Icici Lombard General Insurance's earnings presentation, Jan 19, 2021
Slide 1: Exchange filing cover letter: Investor Presentation
Ref No.: MUM/SEC/241-01/2021 January 19, 2020 To, To, General Manager Vice President Listing Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Tower, Exchange Plaza, 5th Floor, Plot C/1, Dalal Street, Fort G Block, Bandra-Kurla Complex Mumbai – 400
Slide 2: 9M2021 Performance Review
Icici€Lombard 9M2021 Performance Review
Slide 3: Agenda
Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 4: Agenda
Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 5: ICICI General – Pillars of Strength
ICICI General – 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 • Profitable growth •
Slide 6: Key Highlights
Key Highlights Particulars FY2019 FY2020 9M2020 9M2021 (` billion) Actual Actual Actual Actual Gross Written Premium 147.89 135.92 103.61 107.60 Gross Direct Premium Income (GDPI) 144.88 133.13 101.32 105.25 GDPI Growth 17.2% -8.1% -7.9% 3.9% GDPI Growth (excluding crop) 20.5% 10.5% 13.2% 4.3% Combi
Slide 7: Comprehensive Product Portfolio
Comprehensive Product Portfolio Product Mix 0% 8% 8% 9% 9% 4% 0% 0% 3% 0% Others 4% 17% 12% 0% 12% 17% Crop 3% 7% 25% 25% Marine 22% 20% Fire 23% 23% 23% Health, Travel & PA 21% Motor TP 24% 28% 27% 26% Motor OD FY2019 FY2020 9M2020 9M2021 Diversified product mix– motor, health, travel & personal
Slide 8: Comprehensive Product Portfolio - Motor
Comprehensive Product Portfolio - Motor ` billion Motor GDPI Mix 73.8% 76.5% 77.9% 63.6% Type 9M2020 9M2021 22.4% 5.7% 9.5% 2.1% Private car 55.9% 57.4% Two Wheeler 29.6% 27.3% Motor Commercial Vehicle 14.5% 15.3% 34.08 30.16 36.89 30.99 27.33 27.34 24.13 23.08 Loss cost driven micro-segmentation
Slide 9: Comprehensive Product Portfolio – Health, Travel & PA
Comprehensive Product Portfolio – Health, Travel & PÀ billion 73.5% 69.9% 69.6% 77.3% Health, Travel & PA GDPI Mix 19.9% 12.2% 23.7% -8.9% Health, Travel & PA Type 9M2020 9M2021 Individual 22.5% 24.9% 29.69 33.32 25.08 22.84 Group – Others 40.0% 23.2% Group Employer-Employee 37.4% 51.9% FY2019 FY20
Slide 10: Property & Casualty
Comprehensive Product Portfolio – P&C ` billion Market share in commercial lines 67.3% 57.4% 57.8% 66.4% Property & Casualty (P&C) Market Share Property & Casualty* 16.9% 20.4% 11.4% 22.0% Product 9M2020 9M2021 Fire 10.0% 11.0% Engineering 12.4% 13.6% 26.44 31.83 30.61 25.08 Marine Cargo 15.3% 16.
Slide 11: Digital Opportunities
Digital Opportunities Service Excellence Policy Issuance Claims & Servicing Headcount Productivity 15.7 Mn Policies sourced 1.1 Mn Claims honored 15.3% 12 year CAGR 41.0% in December 2020, 97.5% issued electronically Motor OD claims through (96.5% in FY2020) InstaSpect (24.5% in March 2020) Automati
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 • Update- Scheme of Arrangement • ESG Initiatives • Update- COVID-19 • Industry Overview
Slide 14: Financial performance
Financial performance ` billion Combined ratio* (% ) Return on average Equity (ROAE) (% ) 100.5% 21.3% 21.8% 22.4% 100.4% 20.8% 20.3% 98.8% 98.7% 99.1% 17.6% 97.9% FY2019 FY2020 Q32020 Q32021 9MFY2020 9MFY2021 FY2019 FY2020 Q32020 Q32021 9MFY2020 9MFY2021 Profit before Tax (PBT) Growth Profit after
Slide 15: Robust Investment Performance
Robust Investment Performance ` billion Realised Return Realised (%) Return (% ) Investment Book Investment Leverage2 9.4% 7.9% 4.09x 4.21x 4.09x 4.13x 4.16x 4.05x 1 6.3% 5.9% 1 291.62 298.92 263.27 248.45 239.99 222.31 1 1 1.8% 2.0% FY2019 FY2020 Q32020 Q32021 9M2020 9M2021 FY2019 FY2020 H12020 H12
Slide 16: Agenda
Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 17: Update- Scheme of Arrangement
Update- Scheme of Arrangement Regulatory Filings & Approvals CCI approved the combination under sub section (1) section 31 of Competition Act 2002 on November 2, 2020 BSE Limited and NSE Limited, issued their 'No adverse observation/ No-objection', on the proposed scheme on November 2, 2020 and Nove
Slide 18: Agenda
Agenda • Company Strategy • Financial Performance • Update - Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 19: Safeguarding environment
Safeguarding environment An overarching Policy on Environment Management Becoming Reduce, Reuse, Saving on Protecting the energy efficient and Recycle water environment • Adapting methods to • Incorporating processes • Engaging in rainwater • Switching to bio-degradable conserve energy and that prom
Slide 20: Contributing the Social Way
Contributing the Social Way Enabling community Addressing Creating value for awareness and customer needs employees development • Providing best-in-class • Hiring from diverse skill sets • Aiming at community well-being experience with healthcare, road safety and • Building capabilities in knowledge
Slide 21: Strong Governance
Strong Governance Robust Structure Code of conduct Data privacy • Conducting business with highest • Detecting, preventing, mitigating • Optimum mix of Executive/Non- standards of compliance and cyber security issues Executive Directors as per Policy on Board Diversity ethics • Enforcing leading pra
Slide 22: Agenda
Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 23: 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 Premium as a % of GDP (CY19) (US$) 8.51 4.95 2.67 2.31 2.31 2.01 1.78 0.97 0.94 0.58 India: US$ EAPAC*: US$ World: US$ 26.64 billion 342.02 billion 3376.33 billi
Slide 24: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion # 11.7% Industry CAGR (8.1%) ^# 2.5%# 55.8% IL CAGR 54.7% 1,893.02 3.9%# Market Share of Private Players** 1,694.48 50.0% 49.6% 1,420.85 1,456.79 17.2% 14.4% 16.6% 73.3%* 36.6% 0.1% 294.98 100.87 FY2001 FY2008 FY2019 FY2020 9M2020 9M2021 Tariff era Non-
Slide 25: Thank you
9 ICICI ELombard Thank you
Slide 26: Annexure
Annexure icici €Lombard Nibhaye Vaade
Slide 27: Loss Ratio
Loss Ratio Particulars FY2019 FY2020 Q32020 Q32021 9M2020 9M2021 Motor OD 59.2% 68.9% 68.8% 63.2% 69.6% 61.7% Motor TP 90.8% 84.4% 81.8% 65.5% 86.3% 65.7% Health,Travel & PA 73.5% 69.9% 69.6% 74.6% 69.6% 77.3% Crop 106.5% 110.6% 110.4% 112.5% 111.3% 111.2% Fire 83.2% 64.0% 50.1% 56.5% 67.8% 73.9% Ma
Slide 28: Abbreviations
Abbreviations: AI - Artificial Intelligence IRDAI – Insurance Regulatory and Development Authority of India AY – Accident Year ML- Machine Learning CAGR – Compounded Annual Growth Rate NCLT- National Company Law Tribunal CCI – Competition Commission of India NEP – Net Earned Premium CY – Calendar Ye
Slide 29: 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 Amphan* 2020 1,000.00 15.00 4.8% Maharashtra, Gujarat, Karnataka, Kerala & other 2019 709.70** 20.00 3.4% states Floods Cyclone Fani 2019 120.00 1
Slide 30: Reserving Triangle Disclosure – Total
1 Reserving Triangle Disclosure – Total ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2020 Prior AY 11 AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 End of First Year 54.99 20.66 22.53 27.97 35.96 34.16 39.13 49.49 52.41 65.27 72.72 One year later 55.11
Slide 31: Reserving Triangle Disclosure – IMTPIP
Reserving Triangle Disclosure – IMTPIP ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2020 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
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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