Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Q1 FY2020 Earnings Presentation
22 slides from Icici Lombard General Insurance's earnings presentation, Jul 20, 2019
Slide 1: Cover letter to stock exchanges: Investor Presentation
IC/CI fJ Lombard - GENERAL INSURANCE - Ref. No.: MUM/SEC/105-07/2020 July 19, 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: Q1 2020 Performance Review
icici €Lombard Q12020 Performance Review
Slide 3: Agenda
Agenda • Company Strategy • Financial Performance • Industry Overview
Slide 4: Agenda: Company Strategy
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, SME insurance market Enhance pro
Slide 6: Key Highlights
Key Highlights Particulars FY2018 FY2019 Q12019 Q12020 (` billion) Actual Actual Actual Actual Gross Written Premium 126.00 147.89 38.56 35.61 Gross Direct Premium Income (GDPI) 123.57 144.88 37.74 34.87 GDPI Growth 15.2% 17.2% 13.7% -7.6% GDPI Growth (excluding crop) 16.5% 20.5% 14.1% 17.7% Combine
Slide 7: Comprehensive Product Portfolio: Product Mix
Comprehensive Product Portfolio Product Mix 8% 8% 10% 10% Others 4% 19% 17% 21% 17% Crop 3% 3% 7% 4% 7% Marine 9% 20% 26% 20% Fire 21% 18% 21% 19% Health* & PA 15% Motor TP 25% 24% 20% 24% Motor OD FY2018 FY2019 Q12019 Q12020 Diversified product mix– motor, health* & personal accident, fire, marin
Slide 8: Comprehensive Product Portfolio: Motor and Health & PA
Comprehensive Product Portfolio ` billion 77.4% 73.8% 75.1% 79.5% Private car, Two wheeler and Commercial Vehicle 15.6% 22.4% 6.8% 14.1% contributed 55.4%, 27.3% and 17.3% respectively of overall Motor Motor GDPI for Q12020 and 50.0%, 32.7% and 17.3% 34.08 30.62 30.16 respectively of overall Motor
Slide 9: Comprehensive Product Portfolio: Property & Casualty and Crop
Comprehensive Product Portfolio ` billion Property & Casualty* 56.1% 67.3% 78.4% 66.9% 20.0% 16.9% 18.1% 28.0% Underwriting of small risks for portfolio diversification and pricing 26.44 Focus on risk mitigation through value added services 22.61 8.62 11.03 FY2018 FY2019 Q12019 Q12020 Loss Ratio
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 Innovation Fraud detection 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: Financial Performance
Agenda • Company Strategy • Financial Performance • Industry Overview
Slide 13: Robust Investment Performance
Robust Investment Performance ` billion Investment Book Investment Leverage2 Realised RealisedReturn Return(%) (%) 9.7% 9.4% 3.90x 4.09x 4.01x 4.27x 3 222.31 237.11 181.93 198.73 2.7%1 2.3%1 FY2018 FY2019 Q12019 Q12020 FY2018 FY2019 Q12019 Q12020 Investment portfolio mix4 for Q12020 : Corporate bo
Slide 14: Financial performance
Financial performance Combined ratio (% ) Return on average Equity (ROAE) (% ) 24.7% 23.0% 20.8% 21.3% 100.2% 100.4% 98.5% 98.8% FY2018 FY2019 Q12018 Q12020 FY2018 FY2019 Q12019 Q12020 ` billion ` billion Profit before Tax (PBT) Grow th Profit after Tax (PAT) Grow th 22.8% 21.8% 35.1% 7.1% 31.4% 33.
Slide 15: Agenda: Industry Overview
Agenda • Company Strategy • Financial Performance • Industry Overview
Slide 16: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion Growth 12.9% 1,701 1,507 17.7% 9.9% 15.5% 482 374 411 271 FY2007 FY2011 FY2018 FY2019 Q12019 Q12020 Industry has grown at CAGR of 17.0% in the last 18 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 (CY18) (US$) 4th largest non-life insurance 5.05 4.26 market in Asia and 15th largest 2.62 2.29 2.14 1.92 1.80 globally 1.06 0.97 0.47 Non-life Insurance penetration in India was ar
Slide 18: Thank you
9 ICICI ELombard Thank you
Slide 19: Annexure
Annexure icici @.ombard ‘Nibhaye Vaade
Slide 20: Loss Ratio
Loss Ratio Particulars FY2018 FY2019 Q12019 Q12020 Motor OD 53.7% 59.2% 62.9% 68.2% Motor TP 107.1% 90.8% 90.6% 90.9% Health* 71.7% 80.7% 80.2% 76.2% PA 23.9% 35.8% 56.5% 31.1% Crop 135.0% 106.5% 116.8% 110.7% Fire 43.1% 83.2% 115.2% 87.6% Marine 54.2% 84.0% 81.1% 58.8% Engineering 24.0% 37.1% 44.9%
Slide 21: Reserving Triangle Disclosure - Total
1 Reserving Triangle Disclosure – Total Incurred Losses and Allocated Expenses (Ultimate Movement) ` billion As at March 31, 2019 Prior AY 10 AY 11 AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 End of First Year 39.01 15.13 20.66 22.53 27.97 35.96 34.16 39.13 49.49 52.41 65.27 One year later 39.86
Slide 22: Reserving Triangle Disclosure - IMTPIP
Reserving Triangle Disclosure – IMTPIP ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2019 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
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