Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Investor Presentation (November 2017)
25 slides from Icici Lombard General Insurance's investor presentation, Nov 9, 2017
Slide 1: Stock exchange disclosure cover letter
Aicici€ Lombard —GENERAL INSURANC E— Ref. No.: MUM/SEC/37-11/2017 November 9, 2017 To, The Manager The Manager Listing Department Listing Department BSE Limited The National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Tower Exchange Plaza, 5" Floor, Plot C/1, Dalal Street G Block, Bandra-Kurla C
Slide 2: Corporate Presentation
Corporate Presentation Gleici ELombard “ Nibhaye Vaade
Slide 3: Agenda
Agenda Industry Overview Company Strategy Financial Performance 2
Slide 4: Agenda: Industry Overview
Agenda Industry Overview Company Strategy Financial Performance 3
Slide 5: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion 1,276 18.1% 469 15.8% 16.7% 261 164 FY04 FY07 FY11 FY17 CAGR GDPI Industry has grown at CAGR of 17% in the last 15 years Industry growth @ 32.4% for FY2017 & 19.5% for H1 2018 Source: IRDAI 4
Slide 6: India Non-life Insurance Market- Large Addressable Market
India Non-life Insurance Market- Large Addressable Market Significantly underpenetrated Premium as a % of GDP (US$) (CY16) 4th largest non-life (%) 4.29 2.74 2.58 2.37 World: 2.81 insurance market in Asia 1.81 1.76 1.70 1.36 0.77 0.51 GDPI growth at CAGR of 17% from FY 2001 to FY 2017 Non-life
Slide 7: Industry product mix
Industry product mix ` billion GDPI 964 1,276 607 726 8% 6% 8% 7% 6% 3% 16% 16% 18% Others 2% 12% 3% 2% 10% 8% 8% Crop 28% Marine 27% 27% 27% F ire H e alth & PA 44% 39% 38% 38% Motor FY 16 FY 17 H1 2017 H1 2018 Motor ,Crop and Health contributing to growth in the industry 6 Source: IRDAI
Slide 8: Agenda: Company Strategy
Agenda Industry Overview Company Strategy Financial Performance 7
Slide 9: Strategy: Market leadership+ Profitable growth
Strategy: Market leadership+ Profitable growth Leverage our strong brand, competitive advantage and broad Leverage and Enhance network of distribution partners market leadership Expand customer base and offerings Focus on agency channel, retail health segment and SME Enhance product offerings
Slide 10: Key Highlights
Key Highlights Particulars FY2016 FY2017 H1 2017 H1 2018 (` billion) Gross Written Premium(GWP) 82.96 109.60 57.07 66.29 Gross Direct Premium Income 80.91 107.25 55.65 64.94 (GDPI) GDPI Growth 21.2% 32.6% 39.2% 16.7% Combined ratio 106.9% 103.9% 106.0% 102.7% Profit After Tax (PAT) 5.07 7.02 3.02 4.
Slide 11: Leadership position across product segments
Leadership position across product segments Rank by GDPI among Private Sector FY2015 FY2016 FY2017 H1 2018 Multi- Product insurance Motor OD* #1 #1 #1 #1 Motor TP* #1 #1 #1 #1 Health and Personal Accident #1 #1 #1 #1 Crop #1 #1 #1 Fire #1 #1 #1 #1 Marine #2 #1 #1 #1 Engineering #1 #1 #1 #1 *Motor OD
Slide 12: Comprehensive Product Portfolio
Comprehensive Product Portfolio 9% 7% 9% 9% Product Mix 7% 4% 20% 21% 25% oth ers 8% 3% 3% 7% 7% 3% C rop 21% 7% 20% 21% Marine 18% 20% Fire 17% 15% 16% Health & PA 31% Motor TP 26% 24% 22% Motor OD FY 16 FY 17 H1 2017 H1 2018 Diversified product mix– motor, health & personal accident, crop, fire,
Slide 13: Comprehensive Product Portfolio: Motor and Health
Comprehensive Product Portfolio ` billion 80. 2% 79. 2% 81. 4% 78. 7% 9 .4% OD TP Increasing focus on relatively profitable segments 1 6 .3% Motor 27.6 Continued growth from Long Term Two Wheeler 25.2 17.8 16.3 13.0 8.5 14.5 10.4 (LTTW) FY 16 FY 17 H1 2017 H1 2018 Loss Ratio Growth 83.2% 90.2% 9
Slide 14: Comprehensive Product Portfolio: Crop and Property
Comprehensive Product Portfolio ` billion 140. 0% 84. 2% 88. 6% 114. 1% Diversification through strategic risk 3 6 .6% selection to mitigate region specific concentration Crop 263.0% 21. 5 16. 3 11. 9 Covered farmers in 7 states and 56 5. 9 districts in Kharif season under PMFBY in FY 16 FY 17 H
Slide 15: Digital Drive: Enabling business transformation
Digital Drive :Enabling business transformation Risk selection Robotics / ChatBOTs Claims management File processing Artificial Intelligence Fraud detection Lean Innovation Operations Technology Dashboards for service & Analytics Customer portal excellence Data Driven decision Intermediary app makin
Slide 16: Risk Framework
Risk Framework Predictive ultimate loss model to improve risk selection Underwriting Diversified exposure across geographies and products Historically lower proportion of losses from catastrophic events than overall market share Recent flood claims (net) of ` 0.18 bn Spread of risk across
Slide 17: Agenda: Financial Performance
Agenda Industry Overview Company Strategy Financial Performance 16
Slide 18: Robust Investment Performance
Robust Investment Performance In vestment Book (` bn) Realised Return 3.64X 3.88X 3.84X 3.93X 10.8% 167. 6 149. 5 135. 6 10.3% 10.3% 115. 6 10.0% FY 16 FY 17 H1 2017 H1 2018 FY16 FY17 H1 2017* H1 2018* Investment Leverage Largest investment book among private non-life Insurer Investment portfoli
Slide 19: Financial performance
Financial performance C ombined Ratios (%) Retu rn on average Equity (%) 108. 6% 20.3% 20.0% 20.2% 20.6% 106. 9% 16.9% 17.9% 106. 0% 103. 9% 102. 8% 102. 7% FY 16 FY 17 Q2 2017 Q2 2018 H1 2017 H1 2018 FY 16 FY 17 Q2 2017 Q2 2018 H1 2017 H1 2018 P r o fit After Tax S olvency 3 8.3% 218% 3 8.5% 210% 2
Slide 20: Thank you
Thank you 19 /q@)iciciEtombard ( J Nibhaye Vaade
Slide 21: Annexure
Annexure Icici Lombard 7 1 Nibhaye Vaade
Slide 22: Loss ratio
Loss ratio Particu lars FY 2016 FY 2017 Q2 2017 Q2 2018 H1 2017 H1 2018 Motor OD 65. 6% 64. 2% 71. 0% 54. 0% 71. 2% 58. 0% Motor TP 97. 7% 97. 4% 92. 9% 111. 4% 94. 2% 104. 7% Health 84. 7% 97. 9% 102. 6% 75. 3% 103. 0% 80. 4% PA 64. 3% 41. 3% 55. 4% 19. 9% 54. 0% 31. 3% C rop 140. 0% 84. 2% 90. 1%
Slide 23: Conservative Reserving Philosophy
Conservative Reserving Philosophy Incurred Losses and Allocated Expenses (Ultimates Movement) ` billion A s at M ar c h 31, 2017 Pr i or A Y 08 A Y 09 A Y 10 A Y 11 A Y 12 A Y 13 A Y 14 A Y 15 A Y 16 A Y 17 En d of Fi r st Y ear 14.57 9.75 12.85 15.13 20.66 22.53 27.97 35.96 34.16 39.13 49.49 O n e
Slide 24: Reserving Triangle Disclosures-IMTPIP
Reserving Triangle Disclosures-IMTPIP Incurred Losses and Allocated Expenses (Ultimates Movement) ` billion A s a t M a r c h 31, 2017 A Y 08 A Y 09 A Y 10 A Y 11 A Y 12 A Y 13 En d of Fi r st Y ea r 2.71 O n e yea r l a t er 3.85 2.72 Two yea r s l a t er 4.49 3.85 2.73 Th r ee yea r s l a t er 5.8
Slide 25: 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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