Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — FY2022 Earnings Presentation
32 slides from Icici Lombard General Insurance's earnings presentation, Apr 21, 2022
Slide 1: Exchange filing cover letter: Investor Presentation FY2022 results
fl 1c1c1~Lombard -GENERAL INSURANCE- Ref. No.: MUM/SEC/07-4/2023 April 21, 2022 To, The Manager The Manager Listing Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot C/1 Dalal Street G Block, Sandra Kurla Comp
Slide 2: FY2022 Performance Review
icici €Lombard FY2022 Performance Review
Slide 3: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 4: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 5: 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 6: Key Highlights
Key Highlights F Particulars FY2020 FY2021 FY2022 Y (₹ billion) Actual Actual Actual 2 Gross Written Premium 135.92 143.20 185.62 Gross Direct Premium Income (GDPI) 133.13 140.03 179.77 GDPI Growth -8.1% 5.2% 28.4% Combined Ratio 100.4% 99.8% 108.8% Profit after Tax 11.94 14.73 12.71 Return on Avera
Slide 7: Comprehensive Product Portfolio – Product Mix
Comprehensive Product Portfolio Product Mix 8% 9% 0% 9% 4% 0% 3% 0% 4% Others 3% 12% 16% 0% 16% Crop 25% Marine 22% 22% Fire 23% 24% Health, Travel & PA 23% Motor TP 28% 26% 23% Motor OD FY2020 FY2021 FY2022 Diversified product mix– motor, health, travel & personal accident, fire, marine, crop and
Slide 8: Comprehensive Product Portfolio - Motor
Comprehensive Product Portfolio - Motor ₹ billion 76.5% 65.8% 70.9% 67.88 70.20 82.80 Motor GDPI Mix Type FY2021 FY2022 42.12 Motor 30.99 33.35 Private car 56.3% 54.0% 36.89 36.85 40.68 Two Wheeler 27.3% 26.4% Commercial Vehicle 16.4% 19.6% FY2020 FY2021 FY2022 Loss Ratio Motor Total OD GDPI TP GDPI
Slide 9: Comprehensive Product Portfolio – Health, Travel & PA
Comprehensive Product Portfolio – Health, Travel & PA ₹ billion Health, Travel & PA GDPI Mix 69.9% 78.0% 91.7% Health, Travel & PA 12.2% -9.3% 32.6% Type FY2021 FY2022 Individual 26.7% 23.5% Group – Others 23.3% 23.8% 40.07 33.32 30.21 Group Employer-Employee 50.0% 52.6% Mass 0.0% 0.1% FY2020 FY2021
Slide 10: Comprehensive Product Portfolio – P&C
Comprehensive Product Portfolio – P&C ₹ billion Market share in commercial lines 57.4% 63.2% 59.4% Property & Casualty Property & Casualty (P&C) Market Share 20.4% 23.5% 27.8% Product FY2021 FY2022 Fire 10.7% 12.8% 50.24 Engineering 13.1% 15.2% 31.83 39.29 Marine Cargo 16.1% 17.9% Liability 15.9%
Slide 11: Digital Opportunities
Digital Opportunities Cloud Adoption Policy Issuance First large insurer to move all core applications to the Cloud 29.3 Mn Policies sourced Improved agility, increased reliability and continuous 97.3% policies issued innovation electronically in FY2022 (97.0% in FY2021) Claims & Servicing AI & ML S
Slide 12: 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 13: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 14: Financial performance
Financial performance ₹ billion Combined ratio (% ) Return on average Equity (ROAE) (% ) 108.8% 21.7% 18.8% 103.2% 14.7% 14.0% 101.8% 99.8% FY2021 FY2022 Q42021 Q42022 FY2021 FY2022 Q42021 Q42022 Profit before Tax (PBT) Growth Profit after Tax (PAT) Growth -13.7% -13.8% 14.73 -9.6% -8.8% 12.71 19.54
Slide 15: Robust Investment Performance
Robust Investment Performance ₹ billion Realised ReturnReturn (%) Realised Return (%) Book Investment Leverage Realised (% ) Investment 4.23x 8.45% 4.09x 7.85% 387.86 308.92 FY2021 FY2022 FY2021 FY2022 Investment portfolio mix2 for FY2022 : Corporate bonds 38.3%, G-Sec 42.5% and equity 12.2% Str
Slide 16: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 17: Safeguarding environment
Safeguarding environment • An overarching policy on environment management 233 6.7 Mn 24.9 • Measuring, monitoring and reporting carbon No. of branches^ Litres of rain water Tons of paper emissions with LED lighting harvested recycled in key • Engaging with investee company towards offices responsib
Slide 18: Contributing the Social Way
Contributing the Social Way 108.2 Mn 5.5 Mn • Community Development and wellbeing initiatives like No. of lives covered No. of lives covered Ride to Safety, Caring hands, Niranjali, Solar panel in Social sector installations in schools • IL TakeCare app influencing behaviour to reduce health 176,071
Slide 19: Strong Governance
Strong Governance • Independent board with diverse skills and expertise 100% • Robust ERM framework* with integrated ESG risk Board committees headed by Independent Directors including chairperson of the Board • Adopted leading practices in Cloud Security** and expanded the ambit of Information Secu
Slide 20: Agenda
Agenda • Company Strategy • Financial Performance • ESG Initiatives • Industry Overview
Slide 21: 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 (CY20) (US$) 9.00 5.20 India: US$ EAPAC*: US$ World: US$ 2.50 2.40 2.30 1.90 1.80 26.74 billion 361.80 billion 3489.61 billion 1.00 1.00 0.
Slide 22: Industry has witnessed steady growth
Industry has witnessed steady growth Industry CAGR ₹ billion IL CAGR #11.1% 49.3% 49.7% Market Share of Private Players** #28.4% 1,987.15 2,207.72 Industry GDPI 15.8% 11.7% 16.6% 36.6% 73.3%* 0.1% 294.98 100.87 FY2001 FY2008 FY2021 FY2022 Tariff era Non-Tariff era * IL CAGR FY2003 – FY2008 # Growth
Slide 23: Thank you
9 ICICI ELombard Thank you
Slide 24: Annexure
Annexure icici € Lombard Nibhaye Vaade
Slide 25: Loss Ratio
Loss Ratio Particulars FY2021 FY2022 Q42021 Q42022 Motor OD 62.2% 68.1% 63.5% 72.9% Motor TP 69.7% 74.0% 81.3% 78.3% Health,Travel & PA 78.0% 91.7% 79.9% 76.6% Crop 111.2% 107.9% 111.4% 125.5% Fire 63.7% 53.1% 35.0% 30.2% Marine 83.3% 77.6% 92.1% 72.8% Engineering 57.7% 69.3% 34.9% 67.4% Other 52.7%
Slide 26: Abbreviations & Glossary
Abbreviations & Glossary: AI - Artificial Intelligence ML- Machine Learning API – Application Programming Interface Motor TP – Motor Third Party AY – Accident Year Mn - Million Banca - Bancassurance NEP – Net Earned Premium CAGR – Compounded Annual Growth Rate NWP – Net Written Premium CCI – Competi
Slide 27: 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 10.3%** Cyclone Yaas* 2021 200.00 7.00 0.4%** Cyclone Amphan* 2020 1,000.00 15.00 7.9%** Maharashtra, Gujarat, Karnatak
Slide 28: 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 29: 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 30: 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 31: 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 32: 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
ICICI Lombard General Insurance Company — FY2022 Earnings Presentation on 6ix