Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Investor Presentation (May 2020)
23 slides from Icici Lombard General Insurance's investor presentation, May 2020
Slide 1: Corporate Presentation
icici €Lombard Corporate Presentation
Slide 2: Agenda
Agenda • Industry Overview • Company Strategy
Slide 3: Agenda
Agenda • Industry Overview • Company Strategy
Slide 4: 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 % Premium as a % of GDP (CY18) (US$) 5.05 4.26 2.62 2.29 2.14 1.92 1.80 India: US$ EAPAC*: US$ World: US$ 1.06 0.97 26.10 billion 0.47 311.60 billion 2,373.05 bi
Slide 5: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion Industry CAGR 11.7% 55.8% IL CAGR 54.7% (8.1%) 1,893.02 Private player market share 1,694.48 17.2% 14.4% 16.6% 73.3%* 36.6% 0.1% 294.98 100.87 FY2001 FY2008 FY2019 FY2020 Non-Tariff era Industry GDPI Tariff era 12 years CAGR : Industry - 16.8%; IL - 12.
Slide 6: Industry business overview
Industry business overview Product Mix 7% 6% 14% Others 19% 3% 16% 17% 6% Crop 10% 2% 2% 13% 7% 8% Marine 21% 20% 30% Fire 30% 9% Health, Travel* & PA 12% 16% 22% 23% Motor TP 29% 29% Motor OD 16% 14% FY2001 FY2008 FY2019 FY2020 * Basis IRDAI circular dated May 20, 2019, Travel included as a part of
Slide 7: Agenda
Agenda • Industry Overview • Company Strategy
Slide 8: ICICI Lombard - Strategy
ICICI Lombard - Strategy Multi-Product Multi-Channel Pan-India Distribution 9 Excellence in Customer service and Technology 13 Robust Risk Framework 14 Sustained Value Creation 15 8
Slide 9: Multi-Product Multi-Channel Pan-India Distribution
Multi-Product Multi-Channel Pan-India Distribution Product Mix Rank by GDPI among Private Sector Multi- Product insurance 8% 9% Others 13% 14% 0% 0% 4% LoB FY2018 FY2019 FY2020 7% 17% 12% Crop 3% Motor OD #1 #1 #1 13% 7% Marine 40% 25% Motor TP #1 #1 #2 28% 20% Fire Health and PA #1 #1 #1 10% 23% He
Slide 10: Comprehensive Product Portfolio - Motor
Comprehensive Product Portfolio - Motor ` billion Motor GDPI Mix 77.4% 73.8% 76.5% Type FY2019 FY2020 15.6% 22.4% 5.7% Private car 50.0% 56.7% Motor Two-wheeler 27.2% 28.5% Commercial Vehicle 22.8% 14.8% 34.08 36.89 30.99 30.62 30.16 Loss cost driven micro-segmentation resulting in 21.87 focus on
Slide 11: Comprehensive Product Portfolio - Health, Travel & PA
Comprehensive Product Portfolio – Health, Travel & PA ` billion Health, Travel* & PA GDPI Mix 64.3% 73.5% 69.9% Health, Travel* & PA Type FY2019 FY2020 15.2% 19.9% 12.2% Individual 27.2% 24.9% Group – others 34.3% 37.3% 33.32 29.69 24.75 Group Employer-Employee 38.0% 37.7% Mass 0.5% 0.1% FY2018 FY20
Slide 12: Comprehensive Product Portfolio - P&C and Crop
Comprehensive Product Portfolio – P&C and Crop ` billion Accretion of market share in commercial lines 56.1% 67.3% 57.4% Property & Casualty* Property & Causality (P&C) Market Share 20.0% 16.9% 20.4% Product FY2019 FY2020 Fire 9.3% 9.8% Engineering 11.5% 11.9% 31.83 Marine Cargo 13.9% 14.9% 22.61
Slide 13: Digital Initiatives
Digital Initiatives Service Excellence Automation & Scale Policy Issuance Next Gen Solutions Policies sourced - 26.2 mn Cloud deployment 96.5% issued electronically Micro services architecture AI and ML Solutions Claims & Servicing 31%* cash less authorization Claims honored - 1.8 mn through AI 24.5
Slide 14: Robust Risk Framework
Robust Risk Framework Underwriting Reinsurance Spread of risk across panel of quality re-insurers Predictive ultimate loss model to improve risk selection Current panel of reinsurers* rated ‘A-’ or above** Diversified exposure across geographies and products Conservative level of catastrop
Slide 15: Sustained value creation (1/2)
Sustained value creation (1/2) Industry CAGR GDPI (` billion) Policies Issued (million) 16.8% 133.13 10.2%* 26.2 33.07 3.5 FY2008 ** FY2020 FY2008 ** FY2020 Profit After Tax (` billion) Headcount Productivity (` million) -12.2%* 11.94 12.5 2.3 1.03 ** ** FY2008 FY2020 FY2008 FY2020 * 11 years CAGR (
Slide 16: Sustained value creation (2/2)
Sustained value creation (2/2) ` billion 1 Investment Book Investment leverage Investment Income 6.3% Nifty equity return 2.21x 4.21x 2 Annualised portfolio return 10.3% Annualised equity return 15.9% 2 18.47 263.27 23.74 2.19 FY2008 ** FY2020 FY2008 ** FY2020 • Investment portfolio mix3 for FY2020
Slide 17: Thank you
9 ICICI ELombard Thank you
Slide 18: Loss Ratio
Loss Ratio Particulars FY2018 FY2019 FY2020 Q42019 Q42020 Motor OD 53.7% 59.2% 68.9% 61.5% 66.8% Motor TP 107.1% 90.8% 84.4% 90.5% 78.5% Health,Travel* & PA 64.3% 73.5% 69.9% 67.0% 70.8% Fire 43.1% 83.2% 64.0% 83.1% 55.4% Marine 54.2% 84.0% 65.3% 74.1% 67.7% Engineering 24.0% 37.1% 40.7% 26.0% 46.9%
Slide 19: ICICI General – Shareholding pattern
ICICI General – Shareholding pattern As at March 31, 2019 As at March 31, 2020 7.07% 7.46% 7.95% 0.11% 13.18% 15.87% 55.87% 55.86% 23.39% 13.24% 19
Slide 20: Abbreviations
Abbreviations: AI - Artificial Intelligence IMTPIP – Indian Third Party Insurance Pool AY – Accident Year IoT – Internet of Things CAGR – Compounded Annual Growth Rate IRDAI – Insurance Regulatory and Development Authority of India CY – Calendar Year LoB – Line of Business EAPAC – Emerging Asia Paci
Slide 21: 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# Maharashtra, Gujarat, Karnataka, Kerala 2019 709.70** 20.00 3.5% & other states Floods Cyclone Fani 2019 120.00 12.25 2.5% Kerala floods 2018 300.00 30.0
Slide 22: Reserving Triangle Disclosure – Total
1 Reserving Triangle Disclosure – Total ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2020 Prior AY 11 AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 End of First Year 54.99 20.66 22.53 27.97 35.96 34.16 39.13 49.49 52.41 65.27 72.72 One year later 55.11
Slide 23: Reserving Triangle Disclosure – IMTPIP
Reserving Triangle Disclosure – IMTPIP ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2020 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
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