Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — FY2019 Earnings Presentation
22 slides from Icici Lombard General Insurance's earnings presentation, Apr 19, 2019
Slide 1: Regulation 30 disclosure cover letter to exchanges
ICIClfJ Lombard -GENERAL INSURANCE - Ref. No.: MUM/SEC/11-04/2020 April 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 Co
Slide 2: FY2019 Performance Review
IcictEtombard GENERAL INSURANCE FY2019 Performance Review
Slide 3: Agenda
Agenda • Company Strategy • Financial Performance • Industry Overview
Slide 4: Agenda
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 and Enhance
Slide 6: Key Highlights
Key Highlights Particulars FY2017 FY2018 FY2019 (` billion) Actual Actual Actual Gross Written Premium 109.60 126.00 147.89 Gross Direct Premium Income (GDPI) 107.25 123.57 144.88 GDPI Growth 32.6% 15.2% 17.2% Combined Ratio 103.9% 100.2% 98.5% Profit after Tax 7.02 8.62 10.49 Return on Average Equi
Slide 7: Comprehensive Product Portfolio: Product Mix
Comprehensive Product Portfolio Product Mix 9% 9% 9% 20% 19% 17% Others 3% 3% 3% Crop 7% 7% 7% Marine 19% 19% 19% Fire 17% 18% 21% Health & PA Motor TP 25% 25% 24% Motor OD FY2017 FY2018 FY2019 Diversified product mix– motor, health & personal accident, crop, fire, marine insurance SME business
Slide 8: Comprehensive Product Portfolio: Motor, Health & PA
Comprehensive Product Portfolio ` billion 7 8 .9% 7 7 .4% 7 3 .8% 9 .4% 1 5.6% 2 2.4% Private car, Two wheeler and Commercial Vehicle contributed 50.0%, 27.2% and 22.8% respectively of Motor Motor GDPI for FY2019 and 51.3%, 30.5% and 18.2% 30.6 34.1 30.2 27.6 21.9 respectively of Motor GDPI for FY
Slide 9: Comprehensive Product Portfolio: Property & Casualty, Crop
Comprehensive Product Portfolio ` billion 6 7 .7% 5 1 .4% 6 2 .5% Property & Casualty 1 9 .1% 2 1 .3% 1 5 .7% Underwriting of small risks for portfolio diversification and pricing 28.2 24.3 Focus on risk mitigation through value added services 20.1 FY2017 FY2018 FY2019 Loss Ratio Growth 8 4 .2%
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 Fraud detection Innovation 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
Agenda • Company Strategy • Financial Performance • Industry Overview
Slide 13: Robust Investment Performance
Robust Investment Performance ` billion 1 Realised RealisedReturn Return(%) (%) In vestment Book Investment Leverage 10. 0% 9. 7% 9. 4% 3.88x 3.90x 4.09x 222. 31 181. 93 149. 50 FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 Investment portfolio mix2 at FY2019 : Corporate bonds (52.1%), G-Sec (30.3%) a
Slide 14: Financial performance
Financial performance C ombined ratio (%) Retu rn on average Equity (ROAE) (%) 20. 3% 20. 8% 21. 3% 103. 9% 19. 1% 17. 5% 100. 2% 99. 5% 98. 5% 98. 0% FY2017 FY2018 FY2019 Q42018 Q42019 FY2017 FY2018 FY2019 Q42018 Q42019 ` billion ` billion Profit before Tax (PBT) Growth Profit after Tax (PAT) Growt
Slide 15: Agenda
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% 15.5% 482 271 FY2007 FY2011 FY2018 FY2019 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 (CY17) (US$) 4th largest non-life insurance World: 2.80 5.00 4.28 market in Asia 2.74 2.36 2.34 1.89 1.77 1.04 0.93 Non-life Insurance penetration 0.46 in India was around 1/3rd o
Slide 18: Thank you
tcici1€ Lombard —GENERAL INSURANCE— Thank you
Slide 19: Annexure
Annexure
Slide 20: Loss Ratio
Loss Ratio Particulars FY2017 FY2018 FY2019 Q42018 Q42019 Motor OD 64.2% 53.7% 59.2% 48.7% 61.5% Motor TP 97.4% 107.1% 90.8% 112.6% 90.5% Health 97.9% 77.6% 85.0% 76.7% 79.2% PA 41.3% 23.9% 35.8% 4.0% 28.3% Crop 84.2% 135.0% 106.5% 211.4% 69.6% Fire 68.4% 43.1% 83.2% -6.5% 83.1% Marine 83.9% 54.2% 8
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 Incurred Losses and Allocated Expenses (Ultimate Movement) ` billion 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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