Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — H1 FY2024 Earnings Presentation
36 slides from Icici Lombard General Insurance's earnings presentation, Oct 18, 2023
Slide 1: Cover letter to stock exchanges
Ref. No.: MUM/SEC/177-10/2024 October 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 – 40
Slide 2: Performance for the Quarter and Half Year Ended September 30, 2023
October 18, 2023 PERFORMANCE FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2023 Gross Direct Premium Income (GDPI) of the Company stood at ₹ 124.72 billion in H1 FY2024 compared to ₹ 105.55 billion in H1 FY2023, a growth of 18.2%, which was higher than the industry growth of 14.9%. o GDPI of t
Slide 3: Operating Performance Review
Solvency ratio was 2.59x at September 30, 2023 as against 2.53x at June 30, 2023 and higher than the minimum regulatory requirement of 1.50x. Solvency ratio was 2.51x at March 31, 2023. The Board of Directors of the company has declared interim dividend of ₹ 5.00 per share for H1 FY2024 as again
Slide 4: About ICICI Lombard General Insurance Company Limited
Notes: Combined Ratio = (Net Incurred Claims/ Net Earned Premium) + (Management Expenses – Commission on Reinsurance)/ Net Written Premium Management Expenses = Commission Paid Direct + Commission Paid on Reinsurance inward + Operating expenses related to insurance business Return on Average Equity
Slide 5: Disclaimer
For further press queries, please get in touch with Ms. Rima Mane +91 99877 87103 or send an email to corporate.communication@icicilombard.com For investor queries please get in touch with Mr. Sarvesh Agrawal +91 70450 91174 or send an email to sarvesh.agrawal@icicilombard.com / ir@icicilombard.com
Slide 6: H1 2024 Performance Review
9 ICICI ELombard H12024 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 Particulars FY2022 FY2023 H12023 H12024 (₹ billion) Actual Actual Actual Actual Gross Written Premium 185.62 217.72 108.32 128.94 Gross Direct Premium Income (GDPI) 179.77 210.25 105.55 124.72 GDPI Growth 28.4% 17.0% 22.6% 18.2% Combined Ratio (CoR) 108.8% 104.5% 104.6% 103.7%* Profit
Slide 11: Comprehensive Product Portfolio
Comprehensive Product Portfolio Product 0% Mix 9% 10% 10% 12% 4% Others 3% 4% 8% 0% 3% 8% 4% 3% Crop 16% 15% 16% 15% Marine 22% 27% Fire 27% 30% Health, Travel & PA 23% 21% Motor TP 18% 16% Motor OD 23% 20% 17% 16% FY2022 FY2023 H12023 H12024 Diversified product mix– motor, health, travel & person
Slide 12: Comprehensive Product Portfolio - Motor
Comprehensive Product Portfolio - Motor ₹ billion 70.9% 72.4% 72.0% 65.8% Motor GDPI Mix 85.82 82.80 37.09 40.13 Type H12023 H12024 42.12 44.31 Private car 49.6% 50.3% Two Wheeler 27.0% 28.1% 40.68 41.51 19.39 20.33 17.70 19.80 Commercial Vehicle 23.4% 21.6% FY2022 FY2023 H12023 H12024 Loss Ratio Mo
Slide 13: Comprehensive Product Portfolio – Health, Travel & PA
Comprehensive Product Portfolio – Health, Travel & PA ₹ billion Health, Travel & PA GDPI Mix 91.7% 77.3% 77.9% 80.6% Health, Travel & PA Type H12023 H12024 Individual 18.1% 16.6% Group – Others 26.4% 28.0% 40.07 55.92 36.94 28.34 Group Employer-Employee 55.4% 55.3% Mass 0.1% 0.1% FY2022 FY2023 H1202
Slide 14: Comprehensive Product Portfolio – P&C
Comprehensive Product Portfolio – P&C ₹ billion 59.4% 59.7% 59.6% 73.4% Property & Casualty (P&C) Market Share Property & Casualty Product H12023 H12024 50.24 59.73 37.61 Fire 12.8% 13.0% 32.13 Engineering 15.1% 17.5% Marine Cargo 18.6% 19.5% Liability 15.4% 18.2% FY2022 FY2023 H12023 H12024 Loss Ra
Slide 15: Digital Opportunities
Digital Opportunities Service Excellence Policy Issuance Claims & Servicing ILTakeCare App 15.4 Mn Policies sourced 1.3 Mn Claims honored 6.9 Mn+ ILTakeCare user downloads (4.6 Mn 72 Claims NPS in Q12024 at March 31, 2023) 99.1% issued electronically (67 in Q42023 ) (96.7% in FY2023) 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 (CoR) (% ) Return on average Equity (ROAE) (% ) 108.8% 24.5% 21.1% 19.9% 17.7% 18.0% 14.7% 105.1% 104.5% ** 104.6% 103.9% * 103.7% FY2022 FY2023 Q22023 Q22024 H12023 H12024 FY2022 FY2023 Q22023 Q22024 H12023 H12024 Profit before Tax (PBT) Growth Profit
Slide 19: Robust Investment Performance
Robust Investment Performance ₹ billion Realised Return (%) Realised Return (%) 2 Realised Return (% ) Investment Book Investment Leverage 4.23x 4.15x 4.08x 4.07x 8.45% 453.12 7.50% 431.80 387.86 400.96 1 3.52% 3.97% 1 1 1 1.83% 2.08% FY2022 FY2023 Q22023 Q22024 H12023 H12024 FY2022 FY2023 H12023 H1
Slide 20: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 21: Safeguarding environment
Safeguarding environment An overarching Policy on Environment Management Responsible Environment friendly Protecting the consumption business practices environment • Insurance solutions enabling transition • Adopting green measures for • Adapting methods to conserve natural towards low carbon econom
Slide 22: Contributing the Social Way
Contributing the Social Way Addressing Creating value for Enabling community customer needs employees awareness and development • Aimed at community well-being in areas of skill • Providing best-in-class • Hiring from diverse skill sets; Employee development, sustainable livelihood, healthcare, expe
Slide 23: Strong Governance
Strong Governance Robust Structure Code of conduct Data protection • Optimum mix of Executive/Non-Executive • Conducting business with highest • Dedicated Information Security Directors as per Policy on Board Diversity standards of compliance and ethics Council • Performance evaluation of Board, Com
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 9.0 Premium as a % of GDP (CY22) 5.8 India: US$ EA*: US$ World: US$ 2.4 2.3 2.2 31.54 billion 396.14 billion 1.9 1.9 3,969.20 billion 1.0 0.6 0.5 Non-Life Insura
Slide 26: Industry has witnessed steady growth
Industry has witnessed steady growth ₹ billion Industry CAGR 16.4%# 17.0%# IL CAGR 14.9%# 49.7% 51.4% Market Share of Private Players** 2,207.72 2,569.12 18.2%# 53.6% 50.8% 15.5% 1,438.02 1,251.96 12.9% 16.6% 73.3%* 36.6% 0.1% 294.98 100.87 FY2001 FY2008 FY2022 FY2023 H12023 H12024 Tariff era Non-Ta
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 Q22023 Q22024 H12023 H12024 Motor OD 68.1% 72.6% 74.3% 64.1% 74.0% 65.5% Motor TP 74.0% 72.2% 66.6% 60.0% 70.1% 66.1% Health,Travel & PA 91.7% 77.3% 81.8% 82.3% 77.9% 80.6% Crop 107.9% 80.1% 85.2% 89.1% 84.3% 90.1% Fire 53.1% 49.3% 40.4% 61.1% 48.5% 71.7% Marine
Slide 30: Abbreviations & Glossary
Abbreviations & Glossary: AI - Artificial Intelligence App- Application ISO – International Organization for Standardization AY – Accident Year IT – Information Technology Banca – Bancassurance IMTPIP – Indian Third Party Insurance Pool BAGI – Bharti Axa General Insurance InvIT- Infrastructure Inves
Slide 31: 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 Biparjoy1 2023 60.00-80.00 ~12.00-15.00 ~7.00% – 5.60% Cyclone Tauktae* 2021 150.00 15.00 8.49%** Cyclone Yaas* 2021 200.00 7.00 0.15%** Cyclone A
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 ₹ billion Incurred Losses and Allocated Expenses (Ultimates movement) 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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