Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — 9M FY2023 Earnings Presentation
31 slides from Icici Lombard General Insurance's earnings presentation, 2023
Slide 1: 9M2023 Performance Review
9 ICICI ELombard 9M2023 Performance Review
Slide 2: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 3: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 4: 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 5: Key Highlights
Key Highlights F Particulars FY2021 FY2022 9M2022 9M2023 Y (₹ billion) 2 Actual Actual Actual Actual Gross Written Premium 143.20 185.62 135.62 164.32 Gross Direct Premium Income (GDPI) 140.03 179.77 133.11 160.48 GDPI Growth 5.2% 28.4% 26.5% 20.6% Combined Ratio 99.8% 108.8% 111.0% 104.6% Profit af
Slide 6: Comprehensive Product Portfolio
Comprehensive Product Portfolio 0% Product Mix 9% 9% 9% 0% 10% 3% 0% 4% 5% 5% Others 3% 3% 4% 16% Crop 16% 17% 15% Marine 22% 22% 22% 26% Fire 24% Health, Travel & PA 23% 22% 21% Motor TP 26% 23% 22% Motor OD 19% FY2021 FY2022 9M2022 9M2023 Diversified product mix– motor, health, travel & personal
Slide 7: Comprehensive Product Portfolio - Motor
Comprehensive Product Portfolio - Motor ₹ billion 65.8% 70.9% 69.4% 70.4% Motor GDPI Mix 70.20 82.80 58.15 64.00 Type 9M2022 9M2023 42.12 Motor 33.35 Private car 55.4% 49.6% 29.00 33.90 40.68 Two Wheeler 27.3% 28.2% 36.85 29.15 30.10 Commercial Vehicle 17.3% 22.2% FY2021 FY2022 9M2022 9M2023 Loss Ra
Slide 8: Comprehensive Product Portfolio – Health, Travel & PA
Comprehensive Product Portfolio – Health, Travel & PA ₹ billion Health, Travel & PA GDPI Mix 78.0% 91.7% 97.3% 78.0% Health, Travel & PA Type 9M2022 9M2023 Individual 22.4% 18.8% Group – Others 22.1% 29.0% 40.07 41.39 30.21 29.07 Group Employer-Employee 55.4% 52.1% Mass 0.1% 0.1% FY2021 FY2022 9M202
Slide 9: Comprehensive Product Portfolio – P&C
Comprehensive Product Portfolio – P&C Market share in commercial lines ₹ billion 63.2% 59.4% 63.7% 60.5% Property & Casualty (P&C) Market Share Property & Casualty Product 9M2022 9M2023 Fire 13.0% 12.8% Engineering 15.9% 16.3% 39.29 50.24 39.34 46.35 Marine Cargo 18.3% 18.0% Liability 16.2% 16.7%
Slide 10: Digital Opportunities
Digital Opportunities Policy Issuance App / Platforms 23.4 Mn Policies sourced 3.7 Mn+ ILTakeCare user downloads (1.3 Mn in March 97.3% policies issued 2022) electronically in 9M2023 (97.3% in FY2022) AI & ML Solutions Claims & Servicing 66.4% of group cashless claims 2.5 Mn Claims honored approved
Slide 11: 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 12: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 13: Financial performance
Financial performance ₹ billion Combined ratio (%) Return on average Equity (ROAE) (%) 111.0% 108.8% 21.7% 18.1% 104.5% 104.4% 104.6% 14.7% 14.6% 14.3% 15.1% 99.8% FY2021 FY2022 Q32022 Q32023 9M2022 9M2023 FY2021 FY2022 Q32022 Q32023 9M2022 9M2023 Profit after Tax (PAT) Profit before Tax (PBT) -13.7
Slide 14: Robust Investment Performance
Robust Investment Performance ₹ billion Realised Return (%) Realised Return (%) Investment Leverage 2 Realised Return (%) Investment Book 4.09x 4.23x 4.23x 4.16x 8.45% 414.51 7.85% 387.86 374.54 1 6.46% 1 308.92 5.47% 1 1 1.92% 1.88% FY2021 FY2022 Q32022 Q32023 9M2022 9M2023 FY2021 FY2022 9M2022 9M2
Slide 15: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 16: Safeguarding environment
Safeguarding environment An overarching Policy on Environment Management Responsible Environment friendly Protecting the consumption business practices environment • Adopting green measures for • Adapting methods to conserve natural • Reducing carbon footprint by integrating digital communication ac
Slide 17: Contributing the Social Way
Contributing the Social Way Addressing Creating value for Enabling community customer needs employees awareness and development • Hiring from diverse skill sets; Employee • Aimed at community well-being in areas of skill • Providing best-in-class friendly policies development, sustainable livelihood
Slide 18: 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 19: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 20: 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 21: Industry has witnessed steady growth
Industry has witnessed steady growth ₹ billion Industry CAGR 11.1%# 16.2%# IL CAGR 28.4%# 20.6%# Market Share of Private Players** 49.3% 49.7% 51.4% 49.1% 15.8% 11.7% 16.6% 1,987.15 2,207.72 1,610.91 1,872.32 73.3%* 36.6% 0.1% 100.87 294.98 FY2001 FY2008 FY2021 FY2022 9M2022 9M2023 Tariff era Non-Ta
Slide 22: Thank you
49 Icici ELombard Thank you
Slide 23: Annexure
Annexure icici € Lombard Nibhaye Vaade
Slide 24: Loss Ratio
Loss Ratio Particulars FY2021 FY2022 Q32022 Q32023 9M2022 9M2023 Motor OD 62.2% 68.1% 71.8% 73.0% 66.5% 73.7% Motor TP 69.7% 74.0% 70.7% 61.9% 72.5% 67.3% Health,Travel & PA 78.0% 91.7% 75.1% 78.2% 97.3% 78.0% Crop 111.2% 107.9% 94.3% 111.8% 107.0% 89.6% Fire 63.7% 53.1% 39.7% 49.8% 61.7% 49.0% Mari
Slide 25: Abbreviations & Glossary
Abbreviations & Glossary: AI - Artificial Intelligence IoT – Internet of Things API – Application Programming Interface IRDAI – Insurance Regulatory and Development Authority of India App- Application ML- Machine Learning AY – Accident Year Motor TP – Motor Third Party Banca – Bancassurance Mn - Mil
Slide 26: 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 Tauktae* 2021 150.00 15.00 8.4%** Cyclone Yaas* 2021 200.00 7.00 0.4%** Cyclone Amphan* 2020 1,000.00 15.00 8.0%** Maharashtra, Gujarat, Karnataka
Slide 27: Reserving Triangle Disclosure – Total
Reserving Triangle Disclosure – Total1 ₹ billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2022 Prior* AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 End of First Year 105.47 34.23 44.87 44.37 49.39 59.24 62.46 77.00 87.33 83.76 101.17 One year later 105
Slide 28: Reserving Triangle Disclosure – IMTPIP
Reserving Triangle Disclosure – IMTPIP ₹ billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2022 AY08 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 6.
Slide 29: Reserving Triangle Disclosure – Motor-TP (excluding IMTPIP)
Reserving Triangle Disclosure – Motor-TP (excluding IMTPIP) Incurred Losses and Allocated Expenses (Ultimate Movement) ₹ billion As at March 31, 2022 Prior* AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 End of First Year 11.06 5.81 10.74 12.63 15.97 17.05 19.98 24.41 31.55 25.15 28.07
Slide 30: Reserving Triangle Disclosure – Others (excluding Motor-TP)
Reserving Triangle Disclosure – Others (excluding Motor-TP) Incurred Losses and Allocated Expenses (Ultimate Movement) ₹ billion As at March 31, 2022 Prior* AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 AY 22 End of First Year 94.40 28.43 34.13 31.74 33.42 42.19 42.48 52.58 55.78 58.61 73.11
Slide 31: 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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