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

Icici Lombard General Insurance — Investor Presentation (May 2019)

23 slides from Icici Lombard General Insurance's investor presentation, May 22, 2019

  1. Slide 1: Corporate Presentation

    IcictEtombard GENERAL INSURANCE Corporate Presentation

  2. Slide 2: Agenda

    Agenda • Industry Overview • Company Strategy • Financial Performance

  3. Slide 3: Agenda

    Agenda • Industry Overview • Company Strategy • Financial Performance

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

  5. Slide 5: Industry has witnessed steady growth

    Industry has witnessed steady growth ` billion Growth 12.9% 1,701 1,507 17.7% 15.5% 482 271 FY2007 FY2011 FY2018 FY2019 Industry has grown at CAGR of 17.0% in the last 18 years Source: Latest IRDAI and GI Council 5

  6. Slide 6: Agenda

    Agenda • Industry Overview • Company Strategy • Financial Performance

  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, SME insurance market and Enhance

  8. Slide 8: Comprehensive Product Portfolio Product Mix

    Comprehensive Product Portfolio Product Mix 9% 9% 9% 20% 19% 17% Others 3% 3% 3% Crop 7% 7% 7% Marine 19% 19% 19% Fire 17% 18% 21% Health & PA Motor TP 25% 25% 24% Motor OD FY2017 FY2018 FY2019  Diversified product mix– motor, health & personal accident, crop, fire, marine insurance  SME business

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

    Comprehensive Product Portfolio ` billion 7 8 .9% 7 7 .4% 7 3 .8% 9 .4% 1 5.6% 2 2.4%  Private car, Two wheeler and Commercial Vehicle contributed 50.0%, 27.2% and 22.8% respectively of Motor Motor GDPI for FY2019 and 51.3%, 30.5% and 18.2% 30.6 34.1 30.2 27.6 21.9 respectively of Motor GDPI for FY

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

    Comprehensive Product Portfolio ` billion 6 7 .7% 5 1 .4% 6 2 .5% Property & Casualty 1 9 .1% 2 1 .3% 1 5 .7%  Underwriting of small risks for portfolio diversification and pricing 28.2 24.3  Focus on risk mitigation through value added services 20.1 FY2017 FY2018 FY2019 Loss Ratio Growth 8 4 .2%

  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 • Company Strategy • Financial Performance

  14. Slide 14: Robust Investment Performance

    Robust Investment Performance ` billion 1 Realised RealisedReturn Return(%) (%) In vestment Book Investment Leverage 10. 0% 9. 7% 9. 4% 3.88x 3.90x 4.09x 222. 31 181. 93 149. 50 FY2017 FY2018 FY2019 FY2017 FY2018 FY2019  Investment portfolio mix2 at FY2019 : Corporate bonds (52.1%), G-Sec (30.3%) a

  15. Slide 15: Financial performance

    Financial performance C ombined ratio (%) Retu rn on average Equity (ROAE) (%) 20. 3% 20. 8% 21. 3% 103. 9% 19. 1% 17. 5% 100. 2% 99. 5% 98. 5% 98. 0% FY2017 FY2018 FY2019 Q42018 Q42019 FY2017 FY2018 FY2019 Q42018 Q42019 ` billion ` billion Profit before Tax (PBT) Growth Profit after Tax (PAT) Growt

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

    Long term value creation (1/2) GDPI (` billion) Policies Issued (million) 26. 5 144. 88 33. 07 3. 5 FY2008 FY2019 FY2008 FY2019 Profit After Tax (` billion) Book Value Per Share* (`) 10. 49 117. 11 28. 51 1. 03 FY2008 FY2019 FY2008 FY2019  GDPI Growth excluding crop segment was 20.5% for FY2019 16

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

    Long term value creation (2/2) 1 Investment leverage Investment Book (` billion) Investment Income (` billion) 4.09x 2 2.21x Annualised portfolio return 10.4% 222. 31 Annualised equity return 21.1% 17. 55 23. 74 2. 19 FY2008 FY2019 FY2008 FY2019 • Investment portfolio mix3 at FY2019 : Corporate bond

  18. Slide 18: Thank you

    tcici1€ Lombard —GENERAL INSURANCE— Thank you

  19. Slide 19: Annexure

    Annexure

  20. Slide 20: Loss Ratio

    Loss Ratio Particulars FY2017 FY2018 FY2019 Q42018 Q42019 Motor OD 64.2% 53.7% 59.2% 48.7% 61.5% Motor TP 97.4% 107.1% 90.8% 112.6% 90.5% Health 97.9% 77.6% 85.0% 76.7% 79.2% PA 41.3% 23.9% 35.8% 4.0% 28.3% Crop 84.2% 135.0% 106.5% 211.4% 69.6% Fire 68.4% 43.1% 83.2% -6.5% 83.1% Marine 83.9% 54.2% 8

  21. Slide 21: Reserving Triangle Disclosure – Total

    1 Reserving Triangle Disclosure – Total Incurred Losses and Allocated Expenses (Ultimate Movement) ` billion As at March 31, 2019 Prior AY 10 AY 11 AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 End of First Year 39.01 15.13 20.66 22.53 27.97 35.96 34.16 39.13 49.49 52.41 65.27 One year later 39.86

  22. Slide 22: Reserving Triangle Disclosure – IMTPIP

    Reserving Triangle Disclosure – IMTPIP Incurred Losses and Allocated Expenses (Ultimate Movement) ` billion As at March 31, 2019 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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