Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — H1 2018 Earnings Presentation
20 slides from Icici Lombard General Insurance's earnings presentation, Oct 17, 2017
Slide 1: H1 2018 Performance Review
H12018 Performance Review October 17, 2017
Slide 2: Agenda
Agenda Company Strategy Financial Performance Industry Overview 2
Slide 3: Agenda
Agenda Company Strategy Financial Performance Industry Overview 3
Slide 4: Strategy: Market leadership + Profitable growth
Strategy: Market leadership+ Profitable growth Leverage our strong brand, competitive advantage and broad Leverage and Enhance network of distribution partners market leadership Expand customer base and offerings Focus on agency channel, retail health segment and SME Enhance product offerings
Slide 5: Key Highlights
Key Highlights Particulars FY2016 FY2017 H1-2017 H1-2018 (` billion) Gross Written Premium(GWP) 82.96 109.60 57.07 66.29 Gross Direct Premium Income 80.91 107.25 55.65 64.94 (GDPI) GDPI Growth 21.2% 32.6% 39.2% 16.7% Combined ratio 106.9% 103.9% 106.0% 102.7% Profit After Tax (PAT) 5.07 7.02 3.02 4.
Slide 6: Comprehensive Product Portfolio
Comprehensive Product Portfolio 9% 7% 9% 9% Product Mix 7% 4% 20% 21% 25% oth ers 8% 3% 3% 7% 7% 3% C rop 21% 7% 20% 21% Marine 18% 20% Fire 17% 15% 16% Health & PA 31% Motor TP 26% 24% 22% Motor OD FY 16 FY 17 H1 2017 H1 2018 Diversified product mix– motor, health & personal accident, crop, fire,
Slide 7: Comprehensive Product Portfolio: Motor and Health
Comprehensive Product Portfolio ` billion 80. 2% 79. 2% 81. 4% 78. 7% 9 .4% OD TP Increasing focus on relatively profitable segments 1 6 .3% Motor 27.6 Continued growth from Long Term Two Wheeler 25.2 17.8 16.3 13.0 8.5 14.5 10.4 (LTTW) FY 16 FY 17 H1 2017 H1 2018 Loss Ratio Growth 83.2% 90.2% 9
Slide 8: Comprehensive Product Portfolio: Crop and Property
Comprehensive Product Portfolio ` billion 140. 0% 84. 2% 88. 6% 114. 1% Diversification through strategic risk 3 6 .6% selection to mitigate region specific concentration Crop 263.0% 21. 5 16. 3 11. 9 Covered farmers in 7 states and 56 5. 9 districts in Kharif season under PMFBY in FY 16 FY 17 H
Slide 9: Digital Drive: Enabling business transformation
Digital Drive :Enabling business transformation Risk selection Robotics / ChatBOTs Claims management File processing Artificial Intelligence Fraud detection Lean Innovation Operations Technology Dashboards for service & Analytics Customer portal excellence Data Driven decision Intermediary app makin
Slide 10: Risk Framework
Risk Framework Predictive ultimate loss model to improve risk selection Underwriting Diversified exposure across geographies and products Historically lower proportion of losses from catastrophic events than overall market share Recent flood claims (net) of ` 0.18 bn Spread of risk across
Slide 11: Agenda
Agenda Company Strategy Financial Performance Industry Overview 11
Slide 12: Robust Investment Performance
Robust Investment Performance In vestment Book (` bn) Realised Return 3.64X 3.88X 3.84X 3.93X 10.8% 167. 6 149. 5 135. 6 10.3% 10.3% 115. 6 10.0% FY 16 FY 17 H1 2017 H1 2018 FY16 FY17 H1 2017* H1 2018* Investment Leverage Largest investment book among private non-life Insurer Investment portfoli
Slide 13: Financial performance
Financial performance C ombined Ratios (%) Retu rn on average Equity (%) 108. 6% 20.3% 20.0% 20.2% 20.6% 106. 9% 16.9% 17.9% 106. 0% 103. 9% 102. 8% 102. 7% FY 16 FY 17 Q2 2017 Q2 2018 H1 2017 H1 2018 FY 16 FY 17 Q2 2017 Q2 2018 H1 2017 H1 2018 P r o fit After Tax S olvency 3 8.3% 218% 3 8.5% 210% 2
Slide 14: Agenda
Agenda Company Strategy Financial Performance Industry Overview 14
Slide 15: Industry has witnessed steady growth
Industry has witnessed steady growth 1,276 ` billion 581 295 164 FY2004 FY2008 FY2012 FY2017 GDPI Industry has grown at CAGR of 17% in the last 15 years Industry growth @ 32.4% for FY2017 & 19.5% for H1-2018 15 Source: IRDAI
Slide 16: India Non-life Insurance Market - Large Addressable Market
India Non-life Insurance Market- Large Addressable Market Significantly underpenetrated Premium as a % of GDP (US$) (CY16) 4th largest non-life (%) 4.29 2.74 2.58 2.37 World: 2.81 insurance market in Asia 1.81 1.76 1.70 1.36 0.77 0.51 GDPI growth at CAGR of 17% from FY 2001 to FY 2017 Non-life
Slide 17: Thank you
Thank you icici Etombard 1 Nibhaye Vaade
Slide 18: Annexure
Annexure icici Etombard 8 J Nibhaye Vaade
Slide 19: Loss ratio
Loss ratio Particu lar FY 2016 FY 2017 Q2 2017 Q2 2018 H1 2017 H1 2018 Motor OD 65. 6% 64. 2% 71. 0% 54. 0% 71. 2% 58. 0% Motor TP 97. 7% 97. 4% 92. 9% 111. 4% 94. 2% 104. 7% Health 84. 7% 97. 9% 102. 6% 75. 3% 103. 0% 80. 4% PA 64. 3% 41. 3% 55. 4% 19. 9% 54. 0% 31. 3% C rop 140. 0% 84. 2% 90. 1% 1
Slide 20: 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 forwar
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