Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — FY2021 Earnings Presentation
32 slides from Icici Lombard General Insurance's earnings presentation, Apr 17, 2021
Slide 1: FY2021 Performance Review
icici €Lombard FY2021 Performance Review
Slide 2: Agenda
Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 3: Agenda
Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 4: 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 5: Key Highlights
Key Highlights Particulars FY2019 FY2020 FY2021 (` billion) Actual Actual Actual Gross Written Premium 147.89 135.92 143.20 Gross Direct Premium Income (GDPI) 144.88 133.13 140.03 GDPI Growth 17.2% -8.1% 5.2% Combined Ratio* 98.8% 100.4% 99.8% Profit after Tax 10.49 11.94 14.73 Return on Average Equ
Slide 6: Comprehensive Product Portfolio
Comprehensive Product Portfolio Product Mix0% 8% 8% 9% 4% 0% 3% 0% Others 17% 12% 0% 16% Crop 3% 7% 25% 22% Marine 20% Fire 23% 24% Health, Travel & PA 21% Motor TP 24% 28% 26% Motor OD FY2019 FY2020 FY2021 Diversified product mix– motor, health, travel & personal accident, fire, marine and others
Slide 7: Comprehensive Product Portfolio - Motor
Comprehensive Product Portfolio - Motor ` billion Motor GDPI Mix Type FY2020 FY2021 73.8% 76.5% 65.8% 22.4% 5.7% 3.4% Private car 56.7% 56.3% Two Wheeler 28.5% 27.3% Motor Commercial Vehicle 14.8% 16.4% 34.08 36.89 36.85 33.35 30.16 30.99 Loss cost driven micro-segmentation resulting in focus on r
Slide 8: Comprehensive Product Portfolio – Health, Travel & PA
Comprehensive Product Portfolio – Health, Travel & PA ` billion 73.5% 69.9% 78.0% Health, Travel & PA GDPI Mix 12.2% -9.3% Health, Travel & PA 19.9% Type FY2020 FY2021 Individual 23.6% 26.7% 33.32 Group – Others 38.8% 23.3% 29.69 30.21 Group Employer-Employee 37.5% 50.0% FY2019 FY2020 FY2021 Mass 0.
Slide 9: Comprehensive Product Portfolio – P&C
Comprehensive Product Portfolio – P&C ` billion Accretion in Market share across all commercial lines 67.3% 63.2% Property & Casualty (P&C) Market Share 57.4% Property & Casualty* 16.9% 20.4% 23.5% Product 11M2020 11M2021 Fire 10.3% 11.2% Engineering 12.4% 13.9% 39.29 Marine Cargo 15.3% 16.6% 26.4
Slide 10: Digital Opportunities
Digital Opportunities Service Excellence Policy Issuance Claims & Servicing Headcount Productivity 21.7 Mn Policies sourced 1.6 Mn Claims honored 14.8% 13 year CAGR 97.0% issued electronically 60.8% Motor OD claims through InstaSpect in March (96.5% in FY2020) 2021 (24.5% in March 2020) Automation a
Slide 11: 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 12: Agenda
Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 13: Financial performance
Financial performance ` billion Combined ratio (% ) Return on average Equity (ROAE) (% ) 20.8% 21.7% 18.8% 18.8% 101.8% 100.4% 99.8% 100.1% FY2020 FY2021 Q42020 Q42021 FY2020 FY2021 Q42020 Q42021 Profit before Tax (PBT) Growth Profit after Tax (PAT) Growth 15.1% 23.4% 14.73 19.54 11.94 22.6% 16.97 2
Slide 14: Robust Investment Performance
Robust Investment Performance ` billion Realised Return Realised (%) Return (% ) Investment Book Investment Leverage1 4.21x 4.09x 308.92 7.9% 7.8% 263.27 FY2020 FY2020 FY2021 FY2021 FY2020 FY2020 FY2021 FY2021 Investment portfolio mix2 for FY2021 : Corporate bonds 42.7%, G-Sec 38.6% and equity 12.
Slide 15: Agenda
Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 16: Update- Scheme of Arrangement
Update- Scheme of Arrangement Regulatory Filings & Approvals Filed an ‘Application for in-principle’ approval to IRDAI on August 26, 2020 Communication received from IRDAI, to approach other Regulatory agencies such as CCI, RBI and SEBI to seek necessary approval while in-principle approval under pr
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 Received in-principle approval from IRDAI on November 27, 2020 BSE Limited and NSE Limited, issued their 'No adverse observation/ No-
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 Responsible Environment friendly Protecting the consumption business practices environment • Adapting methods to conserve natural • Reducing carbon footprint by • Adopting green measures for resources and energy integrating dig
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 • Aimed at community well-being in areas of • Hiring from diverse skill sets; experience Employee friendly policies skill development, sustainable
Slide 21: Strong Governance
Strong Governance Robust Structure Code of conduct Data protection • Optimum mix of Executive/Non- • Dedicated Information Security • Conducting business with highest Executive Directors as per Policy on Council standards of compliance and Board Diversity ethics • Enforcing leading practices and • P
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 # 11.5% # 5.2% Industry CAGR ^# (8.1%) 49.4% # 5.2% 49.3% IL CAGR # 49.3% 1,987.35 1,889.17 Market Share of Private Players** 1,694.48 17.2% 14.4% 16.6% 73.3%* 36.6% 0.1% 294.98 100.87 FY2001 FY2008 FY2019 FY2020 FY2021 Tariff era Non-Tariff era Industr
Slide 25: Thank you
9 ICICI ELombard Thank you
Slide 26: Annexure
Annexure icici € Lombard Nibhaye Vaade
Slide 27: Loss Ratio
Loss Ratio Particulars FY2020 FY2021 Q42020 Q42021 Motor OD 68.9% 62.2% 66.8% 63.5% Motor TP 84.4% 69.7% 78.5% 81.3% Health,Travel & PA 69.9% 78.0% 70.8% 79.9% Crop 110.6% 111.2% 111.4% 111.4% Fire 64.0% 63.7% 55.4% 35.0% Marine 65.3% 83.3% 67.7% 92.1% Engineering 40.7% 57.7% 46.9% 34.9% Other 51.8%
Slide 28: Abbreviations
Abbreviations: AI - Artificial Intelligence IoT – Internet of Things API – Application Programming Interface IRDAI – Insurance Regulatory and Development Authority of India AY – Accident Year ML- Machine Learning BOT- Built-Operate-Transfer NCLT- National Company Law Tribunal CAGR – Compounded Annua
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 7.1% 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, 2021 Prior AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 End of First Year 75.77 22.53 27.97 35.96 34.16 39.13 49.49 52.41 65.27 72.72 70.56 One year later 76.31
Slide 31: Reserving Triangle Disclosure
Reserving Triangle Disclosure Incurred Losses and Allocated Expenses (Ultimate Movement) – IMTPIP ` billion As at March 31, 2021 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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