Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — FY2023 Earnings Presentation
36 slides from Icici Lombard General Insurance's earnings presentation, Apr 18, 2023
Slide 1: Exchange cover letter: press release and investor presentation
Ref. No.: MUM/SEC/11-04/2024 April 18, 2023 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 – 400 001 Mumbai – 400 0
Slide 2: Performance for the quarter and year ended March 31, 2023
April 18, 2023 PERFORMANCE FOR THE QUARTER AND YEAR ENDED MARCH 31, 2023 Gross Direct Premium Income (GDPI) of the Company stood at ₹ 210.25 billion in FY2023 compared to ₹ 179.77 billion in FY2022, a growth of 17.0% which was higher than the industry growth of 16.4%. o GDPI of the Company was at
Slide 3: Operating Performance Review
including proposed final dividend is ₹ 10.00 per share. Return on Average Equity (ROAE) was 17.7% in FY2023 as against 14.7% in FY2022, whereas ROAE was 17.2% in Q4 FY2023 as against 14.0% in Q4 FY2022. Solvency ratio was 2.51x as at March 31, 2023 as against 2.45x as at December 31, 2022 which
Slide 4: About ICICI Lombard General Insurance Company Limited
Net Worth = Share Capital + Reserves & Surplus About ICICI Lombard General Insurance Company Limited ICICI Lombard is the leading private general insurance company in the country. The Company offers a comprehensive and well-diversified range of products through multiple distribution channels, includ
Slide 5: Forward-looking statements
etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking st
Slide 6: FY2023 Performance Review
9 ICICI ELombard FY 2023 Performance Review
Slide 7: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 8: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 9: ICICI Lombard General Insurance – Pillars of Strength
ICICI Lombard General Insurance – 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 • Leveraging on Artificial • P
Slide 10: Key Highlights
Key Highlights F Particulars FY2021 FY2022 FY2023 Y (₹ billion) Actual Actual Actual 2 Gross Written Premium 143.20 185.62 217.72 Gross Direct Premium Income (GDPI) 140.03 179.77 210.25 GDPI Growth 5.2% 28.4% 17.0% Combined Ratio 99.8% 108.8% 104.5% Profit after Tax 14.73 12.71 17.29* Return on Aver
Slide 11: Comprehensive Product Portfolio
Comprehensive Product Portfolio Product Mix 0% 9% 9% 10% 3% 0% 4% 0% 4% Others 3% 3% 16% Crop 16% 15% Marine 22% 22% 27% Fire 24% Health, Travel & PA 23% 21% Motor TP 26% 23% Motor OD 20% FY2021 FY2022 FY2023 Diversified product mix– motor, health, travel & personal accident, fire, marine, crop an
Slide 12: Comprehensive Product Portfolio - Motor
Comprehensive Product Portfolio - Motor ₹ billion 65.8% 70.9% 72.4% Motor GDPI Mix 70.20 82.80 85.82 Type FY2022 FY2023 44.31 Private car 54.0% 49.9% 42.12 Motor 33.35 Two Wheeler 26.4% 27.8% 36.85 40.68 41.51 Commercial Vehicle 19.6% 22.3% FY2021 FY2022 FY2023 Loss Ratio Motor Total OD GDPI TP GDPI
Slide 13: Comprehensive Product Portfolio – Health, Travel & PA
Comprehensive Product Portfolio – Health, Travel & PA ₹ billion Health, Travel & PA GDPI Mix 78.0% 91.7% 77.3% Type FY2022 FY2023 Health, Travel & PA Individual 23.5% 20.0% Group – Others 23.8% 30.5% 55.92 Group Employer-Employee 52.6% 49.4% 30.21 40.07 Mass 0.1% 0.1% FY2021 FY2022 FY2023 Loss Ratio
Slide 14: Comprehensive Product Portfolio – P&C
Comprehensive Product Portfolio – P&C Market share in commercial lines ₹ billion 63.2% 59.4% 59.7% Property & Casualty (P&C) Market Share Property & Casualty Product FY2022 FY2023 Fire 12.8% 12.8% Engineering 15.2% 15.4% 39.29 50.24 59.73 Marine Cargo 17.9% 17.8% Liability 15.2% 16.6% FY2021 FY202
Slide 15: Digital Opportunities
Digital Opportunities Service Excellence Policy Issuance Claims & Servicing ILTakeCare App 32.7 Mn Policies sourced 3.6 Mn Claims honored 4.6 Mn+ ILTakeCare user downloads (1.3 Mn 65 Claims NPS in Q32023 at March 31, 2022) 96.7% issued electronically (63 in Q22023 ) (97.3% in FY2022) Automation and
Slide 16: 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 17: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 18: Financial performance
Financial performance ₹ billion Combined ratio (% ) Return on average Equity (ROAE) (% ) 108.8% 17.7% 17.2% 14.7% 14.0% 104.5% 104.2% 103.2% FY2022 FY2023 Q42022 Q42023 FY2022 FY2023 Q42022 Q42023 Profit before Tax (PBT) Growth Profit after Tax (PAT) Growth 25.5% 36.0% 21.13 17.29 * 16.84 12.71 39.5
Slide 19: Robust Investment Performance
Robust Investment Performance ₹ billion 1 Realised Return (%) Realised Return (%) Investment Leverage Realised Return (% ) Investment Book 4.23x 4.15x 8.45% 431.80 7.50% 387.86 FY2022 FY2023 FY2022 FY2023 Investment portfolio mix2 for FY2023 : Corporate bonds 35.4%, G-Sec 45.5% and equity 11.2%
Slide 20: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 21: Safeguarding Environment
Safeguarding Environment • An overarching Policy on Environment Management Impacting Environment Positively • Measuring, monitoring and reporting GHG footprint • Engaging with investee company towards No. of branches^ Litres of rain water responsible investments with LED lighting harvested • Sustain
Slide 22: Contributing the Social Way
Contributing the Social Way Promoting inclusive Development • Community Development and wellbeing initiatives like Ride to Safety, Caring hands, Niranjali, Solar Lives covered Lives covered in Lives covered in No. of transacting panel installations in schools Social sector Rural RAP/VLE** • IL TakeC
Slide 23: Strong Governance
Strong Governance • Independent board with diverse skills and expertise Board committees headed by Independent • Robust ERM framework* with integrated ESG risk Directors including chairperson of the Board 100% • Adopted leading practices in Cloud Security** and expanded the ambit of Information Secu
Slide 24: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 25: 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 9.10 Premium as a % of GDP (CY21) 5.20 India: US$ EA*: US$ World: US$ 2.20 2.20 2.20 30.30 billion 399.68 billion 3863.03 billion 1.90 1.70 1.00 0.90 0.50 Non-Li
Slide 26: Industry has witnessed steady growth
Industry has witnessed steady growth ₹ billion Industry CAGR 16.4%# IL CAGR 17.0%# Market Share of Private Players** 49.7% 51.4% 15.5% 12.9% 16.6% 2,207.72 2,569.12 73.3%* 36.6% 0.1% 100.87 294.98 FY2001 FY2008 FY2022 FY2023 Tariff era Non-Tariff era *IL CAGR FY2003 – FY2008 Industry GDPI **Excludin
Slide 27: Thank you
49 Icici ELombard Thank you
Slide 28: Annexure
Annexure icici € Lombard Nibhaye Vaade
Slide 29: Loss Ratio
Loss Ratio Particulars FY2022 FY2023 Q42022 Q42023 Motor OD 68.1% 72.6% 72.9% 69.4% Motor TP 74.0% 72.2% 78.3% 86.5% Health,Travel & PA 91.7% 77.3% 76.6% 75.5% Crop 107.9% 80.1% 125.5% -196.8% Fire 53.1% 49.3% 30.2% 50.3% Marine 77.6% 72.4% 72.8% 65.1% Engineering 69.3% 55.1% 67.4% 11.6% Other 51.3%
Slide 30: Abbreviations & Glossary
Abbreviations & Glossary: AI - Artificial Intelligence IMTPIP – Indian Third Party Insurance Pool API – Application Programming Interface InvIT- Infrastructure Investment Trust App- Application IoT – Internet of Things AY – Accident Year IRDAI – Insurance Regulatory and Development Authority of Indi
Slide 31: Impact of catastrophic events: Historical snapshot
Impact of catastrophic events : Historical snapshot ₹ billion Economic Insured Our Share of Insured Catastrophic Event Year Losses losses* losses Cyclone Tauktae* 2021 150.00 15.00 8.5%** Cyclone Yaas* 2021 200.00 7.00 0.4%** Cyclone Amphan* 2020 1,000.00 15.00 8.0%** Maharashtra, Gujarat, Karnataka
Slide 32: Reserving Triangle Disclosure – Total
Reserving Triangle Disclosure – Total1 ₹ billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2023 Prior* AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 AY 23 End of First Year 139.78 44.87 44.37 49.39 59.24 62.46 77.00 87.33 83.76 101.17 114.84 One year later 13
Slide 33: Reserving Triangle Disclosure – IMTPIP
Reserving Triangle Disclosure – IMTPIP Incurred Losses and Allocated Expenses (Ultimates movement) ₹ billion As at March 31, 2023 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 3.54 Three years later 5.81 4.49 5.52 3.61 Four years later
Slide 34: Reserving Triangle Disclosure – Motor-TP (excluding IMTPIP)
Reserving Triangle Disclosure – Motor-TP (excluding IMTPIP)₹ billion Incurred Losses and Allocated Expenses (Ultimates movement) As at March 31, 2023 Prior* AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 AY 23 End of First Year 17.83 10.74 12.63 15.97 17.05 19.98 24.41 31.55 25.15 28.07 35.39
Slide 35: Reserving Triangle Disclosure – Total (excluding Motor-TP)
Reserving Triangle Disclosure – Total (excluding Motor-TP) ₹ billion Incurred Losses and Allocated Expenses (Ultimates movement) As at March 31, 2023 Prior* AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 AY 23 End of First Year 121.95 34.13 31.74 33.42 42.19 42.48 52.58 55.78 58.61 73.11 79.4
Slide 36: 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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