Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — FY2020 Earnings Presentation
27 slides from Icici Lombard General Insurance's earnings presentation, 2020
Slide 1: Performance Review FY2020
icici €Lombard Performance Review FY2020
Slide 2: Agenda
Agenda • Response to COVID-19 • Company Strategy • Financial Performance • Industry Overview
Slide 3: Agenda
Agenda • Response to COVID-19 • Company Strategy • Financial Performance • Industry Overview
Slide 4: Response to COVID-19
COVID 19 Response to COVID-19 ⚫ Continuous communication with customers through emails, tele-calling, SMS and Social Media Platforms undertaken to reassure ⚫ Renewal of motor & health policies Customers ⚫ Claims servicing through e-mails, scan documents etc. ⚫ Dedicated product- Covid-19 benefit cov
Slide 5: Response to COVID-19
COVID 19 Response to COVID-19 ⚫ Work from Home enabled to ensure safety and well-being of our employees across the organization, well before the lockdown ⚫ Accelerated our efforts towards upskilling our employees. Leveraged technology to provide Employees e-learning programs, self-consumption videos
Slide 6: Agenda
Agenda • Response to COVID-19 • Company Strategy • Financial Performance • Industry Overview
Slide 7: 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 • Profitable growth • Leveraging on Artificial n
Slide 8: Key Highlights
Key Highlights Particulars FY2018 FY2019 FY2020 (₹ billion) Actual Actual Actual Gross Written Premium 126.00 147.89 135.92 Gross Direct Premium Income (GDPI) 123.57 144.88 133.13 GDPI Growth 15.2% 17.2% -8.1% GDPI Growth (excluding crop) 16.5% 20.5% 10.5% Combined Ratio * 100.2% 98.8% 100.4% Profit
Slide 9: Comprehensive Product Portfolio
Comprehensive Product Portfolio Product Mix 8% 8% 8% 0% Others 4% 19% 17% 12% Crop 3% 3% 7% 7% 25% Marine 20% 20% Fire 23% 18% 21% Health, Travel* & PA Motor TP 25% 24% 28% Motor OD FY2018 FY2019 FY2020 ⚫ Diversified product mix– motor, health, travel & personal accident, fire, marine and others ⚫ S
Slide 10: Comprehensive Product Portfolio - Motor
Comprehensive Product Portfolio - Motor ` billion Motor GDPI Mix 77.4% 73.8% 76.5% Type FY2019 FY2020 15.6% 22.4% 5.7% Private car 50.0% 56.7% Motor Two-wheeler 27.2% 28.5% Commercial Vehicle 22.8% 14.8% 34.08 36.89 30.99 30.62 30.16 ⚫ Loss cost driven micro-segmentation resulting in 21.87 focus on
Slide 11: Health, Travel & PA
Comprehensive Product Portfolio – Health, Travel & PA ` billion Health, Travel* & PA GDPI Mix 64.3% 73.5% 69.9% Health, Travel* & PA Type FY2019 FY2020 15.2% 19.9% 12.2% Individual 27.2% 24.9% Group – others 34.3% 37.3% 33.32 29.69 24.75 Group Employer-Employee 38.0% 37.7% Mass 0.5% 0.1% FY2018 FY20
Slide 12: Property & Casualty and Crop
Comprehensive Product Portfolio – P&C and Crop ` billion ⚫ Accretion of market share in commercial lines 56.1% 67.3% 57.4% Property & Casualty* Property & Causality (P&C) Market Share 20.0% 16.9% 20.4% Product FY2019 FY2020 Fire 9.3% 9.8% Engineering 11.5% 11.9% 31.83 Marine Cargo 13.9% 14.9% 22.61
Slide 13: Digital Initiatives
Digital Initiatives Service Excellence Automation & Scale Policy Issuance Next Gen Solutions Policies sourced - 26.2 mn Cloud deployment 96.5% issued electronically Micro services architecture AI and ML Solutions Claims & Servicing 31%* cash less authorization Claims honored - 1.8 mn through AI 24.5
Slide 14: Risk Management
Risk Management Underwriting Reinsurance ⚫ Spread of risk across panel of quality re-insurers ⚫ Predictive ultimate loss model to improve risk selection ⚫ Current panel of reinsurers* rated ‘A-’ or above** ⚫ Diversified exposure across geographies and products ⚫ Conservative level of catastrophe (CA
Slide 15: Agenda
Agenda • Response to COVID-19 • Company Strategy • Financial Performance • Industry Overview
Slide 16: Financial performance
Financial performance ` billion Combined ratio (%)* Return on average Equity (ROAE) (%) 100.2% 100.4% 100.1% 98.8% 99.0% 20.8% 21.3% 20.8% 18.8% 17.5% FY2018 FY2019 FY2020 Q42019 Q42020 FY2018 FY2019 FY2020 Q42019 Q42020 Profit before Tax (PBT) Growth Profit after Tax (PAT) Growth 6.2% 21.8% 13.8% 2
Slide 17: Robust Investment Performance
Robust Investment Performance ` billion Realised Return (%) Investment Book Investment Leverage 2 Realised Return (%) 9.7% 9.4% 3.90x 4.09x 4.21x 7.9% 1 263.27 222.31 181.93 FY2018 FY2019 FY2020 FY2018 FY2019 FY2020 ⚫ Investment portfolio mix3 for FY2020 : Corporate bonds 50.3%, G-Sec 32.9% and equi
Slide 18: Agenda
Agenda • Response to COVID-19 • Company Strategy • Financial Performance • Industry Overview
Slide 19: 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 (CY18) (US$) 5.05 4.26 2.62 2.29 2.14 1.92 1.80 India: US$ EAPAC*: US$ World: US$ 1.06 0.97 26.10 billion 0.47 311.60 billion 2,373.05 bi
Slide 20: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion Industry CAGR 11.7% 55.8% IL CAGR 54.7% (8.1%) 1,893.02 Private player market share 1,694.48 17.2% 14.4% 16.6% 73.3%* 36.6% 0.1% 294.98 100.87 FY2001 FY2008 FY2019 FY2020 Non-Tariff era Industry GDPI Tariff era 12 years CAGR : Industry - 16.8%; IL - 12.
Slide 21: Thank you
9 ICICI ELombard Thank you
Slide 22: Annexure
Annexure icici @.ombard ‘Nibhaye Vaade
Slide 23: Loss Ratio
Loss Ratio Particulars FY2018 FY2019 FY2020 Q42019 Q42020 Motor OD 53.7% 59.2% 68.9% 61.5% 66.8% Motor TP 107.1% 90.8% 84.4% 90.5% 78.5% Health,Travel* & PA 64.3% 73.5% 69.9% 67.0% 70.8% Fire 43.1% 83.2% 64.0% 83.1% 55.4% Marine 54.2% 84.0% 65.3% 74.1% 67.7% Engineering 24.0% 37.1% 40.7% 26.0% 46.9%
Slide 24: Abbreviations
Abbreviations: AI - Artificial Intelligence IRDAI – Insurance Regulatory and Development Authority of India AY – Accident Year ML- Machine Learning CAGR – Compounded Annual Growth Rate NBFC- Non Banking Financial Company CY – Calendar Year NEP – Net Earned Premium EAPAC – Emerging Asia Pacific Marke
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# Maharashtra, Gujarat, Karnataka, Kerala 2019 709.70** 20.00 3.5% & other states Floods Cyclone Fani 2019 120.00 12.25 2.5% Kerala floods 2018 300.00 30.0
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
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