Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Edelweiss Emerging Ideas Virtual Conference 2020
28 slides from Icici Lombard General Insurance's conference presentation, Dec 10, 2020
Slide 1: Stock exchange disclosure cover letter
Ref. No.: MUM/SEC/220-12/2021 December 11, 2020 To, The Manager The Manager Listing Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot C/1 Dalal Street G Block, Bandra Kurla Complex, Mumbai-400001 Mumbai-400051
Slide 2: Driving Profitable Growth
Driving Profitable Growth December 10, 2020
Slide 3: Agenda
Agenda • Industry Overview • Company Strategy • ESG Initiatives
Slide 4: Agenda
Agenda • Industry Overview • Company Strategy • ESG Initiatives
Slide 5: 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 6: Industry has witnessed steady growth
Industry has witnessed steady growth ₹ billion Industry CAGR ^ 55.8% IL CAGR 1,893.02 Private Player Market Share ** 1.4% 16.8% 0.8% 48.6% 47.2% 12.3% 955.28 968.32 16.6% 73.3%* 36.6% 0.1% 294.98 100.87 FY2001 FY2008 FY2020 H12020 H12021 Non-Tariff era Industry GDPI Tariff era Source: IRDAI and GI C
Slide 7: Industry business overview
Industry business overview Industry Product Mix 6% 6% 19% 14% Others 3% 17% 19% 0% 6% 10% 2% 2% Crop 13% 8% 12% Marine 21% 20% 30% Fire 9% 32% 12% 16% Health, Travel & PA 23% Motor TP 18% 29% 28% Motor OD 14% 11% FY2001 FY2008 FY2020 H12021 6
Slide 8: Agenda
Agenda • Industry Overview • Company Strategy • ESG Initiatives
Slide 9: ICICI Lombard - Strategy
ICICI Lombard - Strategy Diversified Product Mix and Distribution Excellence in Customer service and Technology Robust Risk Framework Sustained Value Creation 8
Slide 10: ICICI Lombard - Strategy
ICICI Lombard - Strategy Diversified Product Mix and Distribution Excellence in Customer service and Technology Robust Risk Framework Sustained Value Creation 9
Slide 11: Diversified Product Mix and Distribution
Diversified Product Mix and Distribution Rank amongst Private Sector Multi- IL Product Mix Product insurance (GDPI basis) Others 13% 8% 10% Line of Business FY2019 FY2020 H12021 14% 0% 0% 4% 3%0% Crop 0% 7% 12% Motor OD #1 #1 #1 19% 13% Marine 40% Motor TP #1 #2 #1 25% Fire 25% 28% Health, Travel He
Slide 12: ICICI Lombard - Strategy
ICICI Lombard - Strategy Diversified Product Mix and Distribution Excellence in Customer service and Technology Robust Risk Framework Sustained Value Creation 11
Slide 13: Digital Opportunities
Digital Opportunities Service Excellence Policy Issuance Claims & Servicing Headcount Productivity 8.2 Mn Policies sourced 0.6 Mn Claims honored during 15.3% CAGR* H12021 during H12021 97.5% issued electronically 63.1% in September 2020, Motor OD claims through during H12021 (96.5% in InstaSpect (24
Slide 14: ICICI Lombard - Strategy
ICICI Lombard - Strategy Diversified Product Mix and Distribution Excellence in Customer service and Technology Robust Risk Framework Sustained Value Creation 13
Slide 15: 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 16: ICICI Lombard - Strategy
ICICI Lombard - Strategy Diversified Product Mix and Distribution Excellence in Customer service and Technology Robust Risk Framework Sustained Value Creation 15
Slide 17: Sustainable value creation (1/2)
Sustainable value creation (1/2) ` billion GDPI Policies issued (million) 133.13 26.2 Industry CAGR : 16.8% Industry CAGR : 11.4% 33.07 3.5 FY2008 FY2020 FY2008 FY2020 Profit After Tax Headcount productivity (₹ million) Industry CAGR : minus 12.2%* 11.94 12.5 2.3 1.03 FY2008 FY2020 FY2008 FY2020 S
Slide 18: Sustainable value creation (2/2)
Sustainable value creation (2/2) ` billion 1 Investment Book Investment leverage Investment Income Nifty Equity return 6.2% 2.21x 4.21x Annualised portfolio return 10.2% 2 Annualised equity return 15.9% 2 18.47 Industry CAGR : 18.0% 263.27 23.74 2.19 FY2008 FY2020 FY2008 FY2020 Investment portfoli
Slide 19: Agenda
Agenda • Industry Overview • Company Strategy • ESG Initiatives
Slide 20: 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 21: 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 22: 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 23: Thank you
9 ICICI ELombard Thank you
Slide 24: Abbreviations
Abbreviations: AI - Artificial Intelligence IMTPIP – Indian Third Party Insurance Pool AY – Accident Year IoT – Internet of Things CAGR – Compounded Annual Growth Rate IRDAI – Insurance Regulatory and Development Authority of India CY – Calendar Year ML- Machine Learning EAPAC – Emerging Asia Pacifi
Slide 25: 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 4.9% Maharashtra, Gujarat, Karnataka, Kerala & other 2019 709.70** 20.00 3.5% states Floods Cyclone Fani 2019 120.00 1
Slide 26: 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 27: 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 28: 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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