Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — 9M FY2024 Earnings Presentation
36 slides from Icici Lombard General Insurance's earnings presentation, Jan 16, 2024
Slide 1: Exchange filing cover letter
Ref. No.: MUM/SEC/472-01/2024 January 16, 2024 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 nine months ended December 31, 2023
January 16, 2024 PERFORMANCE FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2023 Gross Direct Premium Income (GDPI) of the Company stood at ₹ 187.03 billion in 9M FY2024 compared to ₹ 160.48 billion in 9M FY2023, a growth of 16.5%, which was higher than the industry growth of 14.0%. Excluding
Slide 3: Operating Performance Review
o PAT grew by 22.4% to ₹ 4.31 billion in Q3 FY2024 from ₹ 3.53 billion in Q3 FY2023. Return on Average Equity (ROAE) was 17.1% in 9M FY2024 compared to 18.1% in 9M FY2023 while ROAE was 15.3% in Q3 FY2024 compared to 14.3% in Q3 FY2023. Solvency ratio was 2.57x at December 31, 2023 as against 2.
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 rima.mane@icicilombard.com / 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@icicilomba
Slide 6: 9M2024 Performance Review
icici @Lombard | Nibhaye Vaat Team 9M2024 Performance Review
Slide 7: 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
Slide 8: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 9: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 10: 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- Customer service Management Conservation growth channel and Technology distribution • Leading private sector • Comprehensive and • Leveraging on Artificial •
Slide 11: Key Highlights
Key Highlights Particulars FY2022 FY2023 9M2023 9M2024 (₹ billion) Actual Actual Actual Actual Gross Written Premium 185.62 217.72 164.32 193.31 Gross Direct Premium Income (GDPI) 179.77 210.25 160.48 187.03 GDPI Growth 28.4% 17.0% 20.6%* 16.5%* Combined Ratio (CoR) 108.8% 104.5% 104.6% 103.7% Profi
Slide 12: Comprehensive Product Portfolio
Comprehensive Product Portfolio Product Mix 0% 9% 10% 10% 11% 4% Others 3% 4% 5% 6% 3% 4% 0% 3% 16% Crop 15% 15% 14% Marine 22% 27% 26% 29% Fire Health, Travel & PA 23% 21% 21% Motor TP 19% Motor OD 23% 20% 19% 18% FY2022 FY2023 9M2023 9M2024 Diversified product mix– motor, health, travel & person
Slide 13: Comprehensive Product Portfolio: Motor
Comprehensive Product Portfolio: Motor ₹ billion 70.9% 72.4% 70.4% 64.9% Motor GDPI Mix 82.80 85.82 64.00 68.55 Type 9M2023 9M2024 Motor 42.12 44.31 Private car 49.6% 51.4% 33.90 34.68 Two Wheeler 28.2% 27.8% 40.68 41.51 30.10 33.87 Commercial Vehicle 22.2% 20.8% FY2022 FY2023 9M2023 9M2024 Loss Rat
Slide 14: Comprehensive Product Portfolio: Health, Travel & PA
Comprehensive Product Portfolio: Health, Travel & PA ₹ billion 91.7% 77.3% 78.0% 80.1% Health, Travel & PA GDPI Mix Health, Travel & PA Type 9M2023 9M2024 Individual 18.8% 17.3% 40.07 55.92 41.39 53.19 Group – Others 29.0% 30.0% Group Employer-Employee 52.1% 52.6% FY2022 FY2023 9M2023 9M2024 Mass 0.
Slide 15: Comprehensive Product Portfolio: P&C
Comprehensive Product Portfolio: P&C ₹ billion Property & Casualty (P&C) Market Share 59.4% 59.7% 60.5% 71.4% Property & Casualty Product 9M2023 9M2024 Fire 12.8% 13.0% Engineering 16.3% 17.8% 50.24 59.73 46.35 53.62 Marine Cargo 18.0% 19.4% Liability 16.7% 19.1% FY2022 FY2023 9M2023 9M2024 Loss Rat
Slide 16: Digital Opportunities
Digital Opportunities Service Excellence Policy Issuance Claims & Servicing ILTakeCare App 26.2 Mn Policies sourced 2.1 Mn Claims honored 8.5 Mn+ ILTakeCare user downloads (4.6 Mn 99.3% issued electronically 64 Claims NPS in Q22024 at March 31, 2023) (72 in Q12024 ) (96.7% in FY2023) Automation and
Slide 17: 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 18: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 19: Financial performance
Financial performance Combined ratio (CoR) (% ) Return on average Equity (ROAE) (% ) 108.8% 17.7% 18.1% ₹ billion 17.1% 14.7% 14.3% 15.3% 104.5% 104.4% 104.6%** 103.6%* 103.7% ** FY2022 FY2023 Q32023 Q32024 9M2023 9M2024 FY2022 FY2023 Q32023 Q32024 9M2023 9M2024 Profit before Tax (PBT) Growth Profit
Slide 20: Robust Investment Performance
Robust Investment Performance ₹ billion Realised Return (%) Realised Return (%) Investment Leverage 2 Realised Return (% ) Investment Book 4.23x 4.15x 4.16x 4.11x 8.45% 468.67 7.50% 431.80 414.51 1 387.86 1 5.89% 5.47% 1.88%1 1.84% 1 FY2022 FY2023 Q32023 Q32024 9M2023 9M2024 FY2022 FY2023 9M2023 9M2
Slide 21: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 22: Safeguarding environment
Safeguarding environment An overarching Policy on Environment Management Responsible Environment friendly Protecting the consumption business practices environment • Insurance • Adopting green measures for • Adapting methods to conserve natural solutions enabling transition communication across orga
Slide 23: 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 experience • Hiring from diverse skill sets; Employee friendly policies development, sustainable
Slide 24: Strong Governance
Strong Governance Robust Structure Code of conduct Data protection • Optimum mix of Executive/Non-Executive • Conducting business with highest • Dedicated Information Security Council Directors as per Policy on Board Diversity standards of compliance and ethics • Enforcing leading practices and cont
Slide 25: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 26: Non-life Insurance Market Large Addressable Market
Non - life Insurance Market Large Addressable Market Significantly underpenetrated 9.0 Premium as a % of GDP (CY22) 5.8 India: US$ EA*: US$ World: US$ 31.54 billion 396.14 billion 3,969.20 billion 2.4 2.3 2.2 1.9 1.9 1.0 0.6 0.5 Non-Life Insurance Density 4th largest non-life insurance market in A
Slide 27: Industry has witnessed steady growth
Industry has witnessed steady growth ₹ billion Industry CAGR 16.4% # 14.1% # IL CAGR 17.0% # 16.5% # 49.7% 51.4% 53.8% Market Share of Private Players** 51.4% 2,207.72 2,569.12 2,134.86 1,872.32 15.5% 12.9% 16.6% 73.3%* 36.6% 0.1% 294.98 100.87 FY2001 FY2008 FY2022 FY2023 9M2023 9M2024 *IL CAGR FY20
Slide 28: Thank you
2 ICICI ELombard | Nibhaye Vaac Team Thank you
Slide 29: Annexure
Annexure ( 3 L Team icici @.ombard ‘Nibhaye Vaade
Slide 30: Loss Ratio
Loss Ratio Particulars FY2022 FY2023 Q32023 Q32024 9M2023 9M2024 Motor OD 68.1% 72.6% 73.0% 64.9% 73.7% 65.3% Motor TP 74.0% 72.2% 61.9% 61.6% 67.3% 64.6% Health,Travel & PA 91.7% 77.3% 78.2% 79.2% 78.0% 80.1% Crop 107.9% 80.1% 111.8% 99.0% 89.6% 91.9% Fire 53.1% 49.3% 49.8% 68.2% 49.0% 70.6% Marine
Slide 31: Abbreviations & Glossary
Abbreviations & Glossary: IBNR – Incurred But Not Reported AI - Artificial Intelligence IL – ICICI Lombard General Insurance Company Limited App- Application ISO – International Organization for Standardization AY – Accident Year IMTPIP – Indian Third Party Insurance Pool BAGI – Bharti Axa General I
Slide 32: 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 Michaung 2023 120.00 25.00 5.88% North India Floods# 2023 150.00 12.00 7.97% Cyclone Biparjoy1 2023 60.00-80.00 15.00 5.24% Cyclone Tauktae* 2021 1
Slide 33: Reserving Triangle Disclosure: Total
Reserving Triangle Disclosure: Total1 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 ₹ billion One year later 138
Slide 34: Reserving Triangle Disclosure: IMTPIP
Reserving Triangle Disclosure: IMTPIP Incurred Losses and Allocated Expenses (Ultimates movement) As at March 31, 2023 AY 08 AY 09 AY 10 AY 11 AY 12 AY 13 ₹ billion 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 6
Slide 35: Reserving Triangle Disclosure: Motor-TP (excl. IMTPIP)
Reserving Triangle Disclosure: Motor-TP (excl. IMTPIP) 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 ₹ billion 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 One
Slide 36: Reserving Triangle Disclosure: Total (excl. Motor-TP)
Reserving Triangle Disclosure: Total (excl. Motor-TP) 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 ₹ billion End of First Year 121.95 34.13 31.74 33.42 42.19 42.48 52.58 55.78 58.61 73.11 79.46 One
ICICI Lombard General Insurance Company — 9M FY2024 Earnings Presentation on 6ix