Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI

Icici Lombard General Insurance — Investor Presentation (January 2019)

23 slides from Icici Lombard General Insurance's investor presentation, Jan 23, 2019

  1. Slide 1: Corporate Presentation

    IcictEtombard GENERAL INSURANCE Corporate Presentation

  2. Slide 2: Agenda

    Agenda • Industry Overview • Company Strategy • Financial Performance 1

  3. Slide 3: Agenda

    Agenda • Industry Overview • Corporate Strategy • Financial Performance 2

  4. Slide 4: 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 5.00 World: 2.80 4.28 market in Asia 2.74 2.36 2.34  Non-life Insurance penetration 1.89 1.77 1.04 0.93 0.46 in India was around 1/3rd o

  5. Slide 5: Industry has witnessed steady growth

    Industry has witnessed steady growth ` billion 1 ,507 Gr owth 13.1% 1 ,230 1 ,088 18.1% 15.8% 469 261 FY2007 FY2011 FY2018 9M 2018 9M 2019 Industry has grown at CAGR of 17% in the last 17 years Source: Latest IRDAI and GI Council 4

  6. Slide 6: Agenda

    Agenda • Industry Overview • Company Strategy • Financial Performance 5

  7. Slide 7: 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 and SME insurance market Enhance

  8. Slide 8: Comprehensive Product Portfolio - Product Mix

    Comprehensive Product Portfolio Product Mix 9% 9% 9% 10% 20% 19% 20% 19% Others 3% 3% 3% 3% Crop 7% 7% 8% 8% Marine 19% 19% 18% 18% Fire 17% 18% 17% 19% Health & PA Motor TP 26% 25% 25% 23% Motor OD FY2017 FY2018 9M2018 9M2019  Diversified product mix– motor, health & personal accident, crop, fire,

  9. Slide 9: Comprehensive Product Portfolio - Motor, Health & PA

    Comprehensive Product Portfolio ` billion 7 8 .9% 7 7 .4% 7 7 .6% 7 3 .1% 9 .4% 1 5.6% 1 6.4% 1 6.5%  Private car, Two wheeler and Commercial Vehicle contributed 50.1%, 28.9% and 21.0% respectively of Motor Motor GDPI for 9M2019 and 51.4%, 30.9% and 17.7% 27.6 30.6 24.8 21.9 23.2 21.2 17.8 16.3 res

  10. Slide 10: Comprehensive Product Portfolio - Property & Casualty, Crop

    Comprehensive Product Portfolio ` billion 6 7 .7% 5 1 .4% 5 8 .9% 6 5 .8% Property & Casualty 1 9 .1% 2 1 .3% 2 7 .9% 1 6 .5%  Underwriting of small risks for portfolio diversification and pricing 24.3 22.5 20.1 19.3  Focus on risk mitigation through value added services FY2017 FY2018 9M2018 9M201

  11. Slide 11: 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 &

  12. Slide 12: 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

  13. Slide 13: Agenda

    Agenda • Industry Overview • Corporate Strategy • Financial Performance 12

  14. Slide 14: Robust Investment Performance

    Robust Investment Performance ` billion 1 Realised RealisedReturn Return(%) (%) Investment Book Investment Leverage 10. 0% 9. 7% 2 2 3.90x 3.92x 7. 7% 3.88x 7. 3% 204.45 181.93 149.50 FY2017 FY2018 9M2018 9M2019 FY2017 FY2018 9M2019  Investment portfolio mix3 at 9M2019 : Corporate bonds (51.0%), G-

  15. Slide 15: Financial performance

    Financial performance C ombined ratio (%) Retu rn on average Equity (ROAE) (%) 103. 9% 21. 9% 21. 5% 22. 7% 20. 3% 20. 8% 19. 0% 100. 2% 100. 4% 98. 7% 96. 0% 95. 9% FY2017 FY2018 Q32018 Q32019 9M2018 9M2019 FY2017 FY2018 Q32018 Q32019 9M2018 9M2019 ` billion ` billion Profit before Tax (PBT) Growth

  16. Slide 16: Long term value creation (1/2)

    Long term value creation (1/2) GDPI (` billion) Policies Issued (million) 123.57 23.5 33.07 3.5 FY2008 FY2018 FY2008 FY2018 Profit After Tax (` billion) Book Value Per Share* (`) 8.62 100 28.5 1.03 FY2008 FY2018 FY2008 FY2018  GDPI Growth excluding government business (in crop and mass health segme

  17. Slide 17: Long term value creation (2/2)

    Long term value creation (2/2) 1 Investment Book (` billion) Investment Leverage Investment Incomes (` billion) 2 2.21X 3.90X 181.93 14.82 23.47 2.19 FY2008 FY2018 FY2008 FY2018 • Investment portfolio mix3 at FY2018 : Corporate bonds (47.57%), G-Sec (29.94%) and equity (16.67%) • Strong investment l

  18. Slide 18: Thank you

    tcici1€ Lombard —GENERAL INSURANCE— Thank you 17

  19. Slide 19: Annexure

    Annexure 18

  20. Slide 20: Loss Ratio

    Loss Ratio Particulars FY2017 FY2018 Q32018 Q32019 9M2018 9M2019 Motor OD 64.2% 53.7% 51.1% 53.0% 55.5% 58.4% Motor TP 97.4% 107.1% 106.0% 91.7% 105.1% 90.9% Health 97.9% 77.6% 73.5% 90.4% 77.9% 87.0% PA 41.3% 23.9% 30.1% 15.4% 30.9% 38.6% Crop 84.2% 135.0% 98.1% 116.3% 110.7% 116.9% Fire 68.4% 43.1

  21. Slide 21: Reserving Triangle Disclosure – Total

    1 Reserving Triangle Disclosure – Total ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2018 Prior AY 09 AY 10 AY 11 AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 End of First Year 25.23 12.85 15.13 20.66 22.53 27.97 35.96 34.16 39.13 49.49 52.41 One year later 26.15

  22. Slide 22: Reserving Triangle Disclosure – IMTPIP

    Reserving Triangle Disclosure – IMTPIP Incurred Losses and Allocated Expenses (Ultimate Movement) ` billion As at March 31, 2018 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

  23. Slide 23: 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 forwar

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