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

Icici Lombard General Insurance — 9M FY2020 Earnings Presentation

23 slides from Icici Lombard General Insurance's earnings presentation, Jan 17, 2020

  1. Slide 1: Cover letter to stock exchanges: Investor Presentation

    /CIC/~ Lombard GENERAL INSURANCE - Ref. No.: MUM/SEC/249-01/2020 January 17, 2020 To, The Manager The Manager Listing Department Listing Department BSE Limited The National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Tower Exchange Plaza, 5th Floor, Plot C/1, Dalal Street G Block, Bandra-Kurla C

  2. Slide 2: 9M2020 Performance Review

    icici €Lombard 9M2020 Performance Review

  3. Slide 3: Agenda

    Agenda • Company Strategy • Financial Performance • Industry Overview

  4. Slide 4: Agenda

    Agenda • Company Strategy • Financial Performance • Industry Overview

  5. Slide 5: 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 Enhance pro

  6. Slide 6: Key Highlights

    Key Highlights Particulars FY2018 FY2019 9M2019 9M2020 (` billion) Actual Actual Actual Actual Gross Written Premium 126.00 147.89 112.61 103.61 Gross Direct Premium Income (GDPI) 123.57 144.88 110.03 101.32 GDPI Growth 15.2% 17.2% 16.7% -7.9% GDPI Growth (excluding crop) 16.5% 20.5% 17.7% 13.2% Com

  7. Slide 7: Comprehensive Product Portfolio: Product Mix

    Comprehensive Product Portfolio Product Mix 8% 8% 9% 9% Others 3% 1% 19% 17% 19% 12% Crop 3% 3% 3% 7% Marine 7% 8% 25% 20% 20% Fire 19% 23% Health, Travel* & PA 18% 21% 19% Motor TP 25% 24% 23% 27% Motor OD FY2018 FY2019 9M2019 9M2020  Diversified product mix– motor, health, travel* & personal acci

  8. Slide 8: Comprehensive Product Portfolio: Motor and Health, Travel & PA

    Comprehensive Product Portfolio ` billion 77.4% 73.8% 73.1% 77.9%  Private car, Two wheeler and Commercial Vehicle 15.6% 22.4% 16.5% 9.5% contributed 55.9%, 29.5% and 14.6% respectively of overall Motor GDPI for 9M2020 and 50.1%, 28.9% and 21.0% Motor 34.08 respectively of overall Motor GDPI for 9M

  9. Slide 9: Comprehensive Product Portfolio: Property & Casualty and Crop

    Comprehensive Product Portfolio ` billion Property & Casualty* 56.1% 67.3% 70.9% 57.8%  Increase in reinsurance rates for other occupancies 16.9% 17.8% 18.6% 20.0% (rates for 8 occupancies increased w.e.f. March 2019) under fire segment w.e.f. January 1, 2020 26.44 25.08  Higher retention on accou

  10. Slide 10: Digital Drive: Enabling business transformation

    Digital Drive: Enabling business transformation Risk Selection Robotics / Chat BOTs Claims management Artificial Intelligence & File processing Machine Learning Lean Innovation Fraud detection Operations Data Driven decision Technology Customer portal Dashboards making for service Intermediary app &

  11. Slide 11: 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

  12. Slide 12: Agenda

    Agenda • Company Strategy • Financial Performance • Industry Overview

  13. Slide 13: Robust Investment Performance

    Robust Investment Performance ` billion Realised RealisedReturn Return(%) (%) Investment Book Investment Leverage2 9.7% 9.4% 3.90x 4.09x 3.92x 4.16x 7.3%1 6.3%1 248.45 222.31 181.93 204.45 FY2018 FY2019 9M2019 9M2020 FY2018 FY2019 9M2019 9M2020  Investment portfolio mix3 for 9M2020 : Corporate bond

  14. Slide 14: Financial performance

    Financial performance Combined ratio (% ) Return on average Equity (ROAE) (% ) 21.3% 22.7% 21.8% 100.2% 100.5% 20.8% 20.3% 98.5% 98.7% 98.7% 19.0% 95.9% FY2018 FY2019 Q32019 Q32020 9M2019 9M2020 FY2018 FY2019 Q32019 Q32020 9M2019 9M2020 ` billion ` billion Grow th Profit before Tax (PBT) Profit afte

  15. Slide 15: Agenda

    Agenda • Company Strategy • Financial Performance • Industry Overview

  16. Slide 16: Industry has witnessed steady growth

    Industry has witnessed steady growth ` billion Growth 12.9% 1,701 15.5% 1,507 1,421 1,231 17.7% 15.5% 482 271 FY2007 FY2011 FY2018 FY2019 9M2019 9M2020 Industry has grown at CAGR of 17.0% in the last 18 years Source: Latest IRDAI and GI Council 15

  17. Slide 17: India Non-life Insurance Market - Large Addressable Market

    India Non - life Insurance Market - Large Addressable Market Significantly underpenetrated % Premium as a % of GDP (CY18) (US$)  4th largest non-life insurance 5.05 4.26 market in Asia and 15th largest 2.62 2.29 2.14 1.92 1.80 globally 1.06 0.97 0.47  Non-life Insurance penetration in India was ar

  18. Slide 18: Thank you

    9 ICICI ELombard Thank you

  19. Slide 19: Annexure

    Annexure icici @.ombard ‘Nibhaye Vaade

  20. Slide 20: Loss Ratio

    Loss Ratio Particulars FY2018 FY2019 Q32019 Q32020 9M2019 9M2020 Motor OD 53.7% 59.2% 53.0% 68.8% 58.4% 69.6% Motor TP 107.1% 90.8% 91.7% 81.8% 90.9% 86.3% Health,Travel* & PA 64.3% 73.5% 74.3% 69.6% 75.7% 69.6% Crop 135.0% 106.5% 116.3% 110.4% 116.9% 111.3% Fire 43.1% 83.2% 58.5% 50.1% 83.2% 67.8%

  21. Slide 21: Impact of catastrophic events: Historical snapshot

    Impact of catastrophic events : Historical snapshot (₹ billion) Catastrophic Event Economic Insured Our Share of Year Losses losses * Insured losses# Maharashtra, Gujarat, Karnataka, 2019 709.70** 20.00 4.10% Kerala & other states Floods Cyclone Fani 2019 120.00 12.25 2.69% Kerala floods 2018 300.00

  22. Slide 22: Reserving Triangle Disclosure – Total

    1 Reserving Triangle Disclosure – Total ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) 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

  23. Slide 23: Reserving Triangle Disclosure – IMTPIP

    Reserving Triangle Disclosure – IMTPIP ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) 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

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