Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI

Icici Lombard General Insurance — Investor Presentation (October 2018)

23 slides from Icici Lombard General Insurance's investor presentation, October 2018

  1. Slide 1: Corporate Presentation

    tcici@Lombard —GENERAL INSURANCE— Corporate Presentation

  2. Slide 2: Agenda

    Agenda • Industry Overview • Company Strategy • Financial Performance 1

  3. Slide 3: Agenda

    Agenda • Industry Overview • Corporate Strategy • Financial Performance 2

  4. 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 (CY17) (US$)  4th largest non-life insurance 5.00 World: 2.80 4.28 market in Asia 2.74 2.36 2.34  Non-life Insurance penetration 1.89 1.77 1.04 0.93 0.46 in India was around 1/3rd o

  5. Slide 5: Industry has witnessed steady growth

    Industry has witnessed steady growth 1 , 507 billion Gr owth 12.8% 18.1% 818 725 15.8% 469 261 FY2007 FY2011 FY2018 H12018 H12019 Industry has grown at CAGR of 17% in the last 17 years 4

  6. Slide 6: Agenda

    Agenda • Industry Overview • Company Strategy • Financial Performance 5

  7. 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 and SME insurance market Enhance

  8. Slide 8: Comprehensive Product Portfolio: Product Mix

    Comprehensive Product Portfolio Product Mix 9% 9% 9% 10% 20% 19% Others 25% 25% 3% 3% Crop 7% 7% 3% 3% 7% 7% Marine 19% 19% 18% 19% Fire 17% 18% Health & PA 16% 16% Motor TP 26% 25% 22% 20% Motor OD FY2017 FY2018 H12018 H12019  Diversified product mix– motor, health & personal accident, crop, fire,

  9. Slide 9: Comprehensive Product Portfolio: Motor, Health & PA

    Comprehensive Product Portfolio billion 7 8 .9% 7 7 .4% 7 8 .7% 7 4 .2%  Private car, Two wheeler and Commercial Vehicle 9 .4% 1 5.6% 1 6.2% 5 .0% contributed 50.0%, 30.1% and 19.9% respectively of Motor Motor GDPI for H12019 and 50.8%, 30.8% and 18.4% 30. 6 27. 6 respectively of Motor GDPI for H12

  10. Slide 10: Comprehensive Product Portfolio: Crop, Property & Casualty

    Comprehensive Product Portfolio billion 8 4 .2% 135.0% 114.1% 117.0% 263.0% 1 0.2% 3 6 .6% 1 1 .1%  Covered farmers in 4 states and 30 districts in Kharif Crop 23.7 21.5 season H12019 compared to 7 states and 56 districts 16.3 18.1 in Kharif H12018 FY2017 FY2018 H12018 H12019 Loss Ratio Growth 67.7

  11. 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 Fraud detection Innovation Operations Data Driven decision Technology Customer portal Dashboards making for service Intermediary app &

  12. 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

  13. Slide 13: Agenda

    Agenda • Industry Overview • Corporate Strategy • Financial Performance 12

  14. Slide 14: Financial performance (1/2)

    Financial performance (1/2) C ombined ratio (%) Retu rn on average Equity (%) 103. 9% 23. 9% 24. 4% 102. 9% 20. 3% 20. 8% 20. 3% 21. 3% 102. 7% 101. 1% 100. 2% 100. 1% FY2017 FY2018 Q22018 Q22019 H12018 H12019 FY2017 FY2018 Q22018 Q22019 H12018 H12019 illion illion Profit before Tax (PBT) Growth Pro

  15. Slide 15: Financial Performance (2/2)

    Financial Performance (2/2) illion 1 Realised RealisedReturn Return(%) (%) Investment Book Investment Leverage 10. 0% 9. 7% 3.88X 3.90X 3.77X 5. 1% 5. 2% 181.93 192.72 149.50 FY2017 FY2018 H12018 H12019 FY2017 FY2018 H12019  Investment portfolio mix2 at H12019 : Corporate bonds (49.0%), G-Sec (31.2

  16. Slide 16: Long term value creation (1/2)

    Long term value creation (1/2) GDPI ( billion) Policies Issued (million) 123.57 23.5 33.07 3.5 FY2008 FY2018 FY2008 FY2018 Profit After Tax ( billion) Book Value Per Share* ( ) 8.62 100 28.5 1.03 FY2008 FY2018 FY2008 FY2018  GDPI Growth excluding government business (in crop and mass health segment

  17. Slide 17: Long term value creation (2/2)

    Long term value creation (2/2) 1 Investment Book ( billion) Investment Leverage Investment Incomes ( billion) 2 2.21X 3.90X 181.93 14.82 23.47 2.19 FY2008 FY2018 FY2008 FY2018 • Investment portfolio mix3 at FY2018 : Corporate bonds (47.57%), G-Sec (29.94%) and equity (16.67%) • Strong investment lev

  18. Slide 18: Thank you

    tcici1@Lombard —GENERAL INSURANCE— Thank you 17

  19. Slide 19: Annexure

    Annexure 18

  20. Slide 20: Loss Ratio

    Loss Ratio Particulars FY2017 FY2018 Q22018 Q22019 H12018 H12019 Motor OD 64.2% 53.7% 54.0% 59.7% 58.0% 61.3% Motor TP 97.4% 107.1% 111.4% 90.5% 104.7% 90.5% Health 97.9% 77.6% 75.3% 84.9% 80.4% 85.2% PA 41.3% 23.9% 19.9% 46.3% 31.3% 51.2% Crop 84.2% 135.0% 106.3% 117.1% 114.1% 117.0% Fire 68.4% 43.

  21. Slide 21: Reserving Triangle Disclosure – Total

    1 Reserving Triangle Disclosure – Total illion 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 13

  22. Slide 22: Reserving Triangle Disclosure – IMTPIP

    Reserving Triangle Disclosure – IMTPIP illion Incurred Losses and Allocated Expenses (Ultimate Movement) 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 6.16

  23. Slide 23: 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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