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

Icici Lombard General Insurance — FY2018 Earnings Presentation

22 slides from Icici Lombard General Insurance's earnings presentation, Apr 25, 2018

  1. Slide 1: FY2018 Performance Review

    FY2018 Performance Review April 25, 2018

  2. Slide 2: Agenda

    Agenda Company Strategy Financial Performance Industry Overview 2

  3. Slide 3: Agenda

    Agenda Company Strategy Financial Performance Industry Overview 3

  4. Slide 4: 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 insurance Enhance product

  5. Slide 5: Key Highlights

    Key Highlights Particu lars FY 2016 FY 2017 FY 2018 (` billion , except per sh are) Actu al Actu al Actu al Gross Written Premiu m 82. 96 109. 60 126. 00 Gross Direct Premiu m In come (GDPI) 80. 91 107. 25 123. 57 GDPI Grow th 21. 2% 32. 6% 15. 2% C ombin ed Ratio 106. 9% 103. 9% 100. 2% Profit afte

  6. Slide 6: Comprehensive Product Portfolio

    Comprehensive Product Portfolio Product Mix 9% 8% 9% 7% 4% 20% 19% Others 8% 3% 3% Crop 7% 7% 21% Marine 19% 19% Fire 20% 17% 18% Health & PA Motor TP 31% 26% 25% Motor OD FY2016 FY2017 FY2018  Diversified product mix– motor, health & personal accident, crop, fire, marine, engineering insurance  P

  7. Slide 7: Motor Health & PA

    Comprehensive Product Portfolio ` billion 8 0 .3% 7 8 .9% 7 7 .4%  Increasing focus on relatively profitable 2 1.5% 9 .4% 1 5.6% segments Motor  Continued growth from Long Term Two 30.6 25.2 27.6 16.3 17.8 21.9 Wheeler (LTTW), where the policy penetration increased from 8.6% for FY2017 to 9.1% for

  8. Slide 8: Property

    Comprehensive Product Portfolio ` billion 140.0% 8 4 .2% 135.0% 115.0% 263.0% 1 0.2%  Diversification through strategic risk selection to mitigate region specific Crop 21.5 23.7 concentration 5.9  Covered farmers in 8 states and 71 districts FY2016 FY2017 FY2018 in Kharif and Rabi season during FY

  9. Slide 9: 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

  10. Slide 10: Risk Framework

    Risk Framework  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 quality re-insurers Reinsurance

  11. Slide 11: Agenda

    Agenda Company Strategy Financial Performance Industry Overview 11

  12. Slide 12: Robust Investment Performance

    Robust Investment Performance In vestment Book (` bn) Investment Leverage1 Realised Return 10. 3% 10. 0% 9. 7% 3.64X 3.88X 3.90X 181. 93 149. 50 115. 63 FY2016 FY2017 FY2018 FY2016 FY2017 FY2018  Investment portfolio mix2 at FY2018 : Corporate bonds (47.57%), G-Sec (29.94%) and equity (16.67%)  St

  13. Slide 13: Financial performance

    Financial performance C ombined Ratios (%) Retu rn on average Equity (%) 106. 9% 20. 3% 20. 8% 19. 7% 19. 1% 103. 9% 16. 9% 100. 2% 99. 5% 97. 1% FY2016 FY2017 FY2018 Q4 2017 Q4 2018 FY2016 FY2017 FY2018 Q4 2017 Q4 2018 Profit before Tax (` bn) Profit after Tax (` bn) 2.5% 28.6% 31.4% 49.3% 15.5% -

  14. Slide 14: Agenda

    Agenda Company Strategy Financial Performance Industry Overview 14

  15. Slide 15: Industry has witnessed steady growth

    Industry has witnessed steady growth ` billion 1,507 1,282 17.5% 18.2% 15.8% 16.7% 469 261 164 FY2004 FY2007 FY2011 FY2017 FY2018 GDPI Growth  Industry has grown at CAGR of 17% in the last 16 years 15 Source: Latest IRDAI report

  16. Slide 16: India Non-life Insurance Market - Large Addressable Market

    India Non - life Insurance Market - Large Addressable Market Significantly underpenetrated (%) Premium as a % of GDP (CY16) (US$) 4. 70 4. 29 World: 2.81  4th largest non-life 2. 74 2. 58 2. 37 1. 81 1. 76 1. 36 0. 77 0. 51 insurance market in Asia  GDPI growth at CAGR of 17% from FY 2001 to FY 20

  17. Slide 17: Thank you

    Thank you /gicici Elombard ( J Nibhaye Vaade

  18. Slide 18: Annexure

    Annexure ICICI ELombard 1 Nibhaye Vaade

  19. Slide 19: Loss ratio

    Loss ratio Particu lars FY 2016 FY 2017 FY 2018 Q4 2017 Q4 2018 Motor OD 65. 6% 64. 2% 53. 7% 49. 3% 48. 7% Motor TP 97. 7% 97. 4% 107. 1% 104. 9% 112. 6% Health 84. 7% 97. 9% 77. 6% 92. 0% 76. 7% PA 64. 3% 41. 3% 23. 9% 17. 5% 4. 0% C rop 140. 0% 84. 2% 135. 0% 84. 9% 211. 4% Fire 63. 6% 68. 4% 43.

  20. Slide 20: Reserving Triangle Disclosure – Total

    Reserving Triangle Disclosure – Total 1 ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2018 Prior AY 09 AY 10 AY 11 AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 End of First Year 25.23 12.85 15.13 20.66 22.53 27.97 35.96 34.16 39.13 49.49 52.41 One year later 26.15

  21. Slide 21: Reserving Triangle Disclosure – IMTPIP

    Reserving Triangle Disclosure – IMTPIP ` billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2018 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

  22. Slide 22: 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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