Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — H1 2022 Earnings Presentation
31 slides from Icici Lombard General Insurance's earnings presentation, Oct 20, 2021
Slide 1: H1 2022 Performance Review
icici €Lombard H12022 Performance Review
Slide 2: Agenda
Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 3: Agenda
Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 4: 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 5: Key Highlights
Key Highlights Particulars FY2020 FY2021 H12021 H12022 (₹ billion) Actual Actual Actual Actual Gross Written Premium 135.92 143.20 66.49 87.76 Gross Direct Premium Income (GDPI) 133.13 140.03 64.91 86.13 GDPI Growth -8.1% 5.2% 0.8% 32.7% Combined Ratio 100.4% 99.8% 99.8% 114.3% Profit after Tax 11.9
Slide 6: Comprehensive Product Portfolio
Comprehensive Product Portfolio Product Mix 8% 9% 0% 10% 10% 4% 0% 3% 0% 3% 0% 7% Others 12% 16% 0% 4% 19% Crop 19% 25% Marine 22% 25% 23% Fire 23% 24% Health, Travel & PA 20% 18% Motor TP 28% 26% 23% Motor OD 19% FY2020 FY2021 H12021 H12022 Diversified product mix– motor, health, travel & persona
Slide 7: Comprehensive Product Portfolio - Motor
Comprehensive Product Portfolio - Motor ₹ billion 76.5% 65.8% 63.2% 68.4% Motor GDPI Mix 67.88 70.20 27.51 32.46 Type H12021 H12022 30.99 33.35 Private car 57.9% 56.5% Motor Two Wheeler 26.4% 26.5% 15.82 36.89 36.85 12.94 Commercial Vehicle 15.7% 17.0% 14.57 16.64 FY2020 FY2021 H12021 H12022 Loss
Slide 8: Comprehensive Product Portfolio – Health, Travel & PA
Comprehensive Product Portfolio – Health, Travel & PA ₹ billion 69.9% 78.0% 78.8% 109.3% Health, Travel & PA GDPI Mix Health, Travel & PA Type H12021 H12022 Individual 23.4% 21.6% 33.32 30.21 Group – Others 19.6% 19.1% 15.95 20.15 Group Employer-Employee 57.0% 59.1% FY2020 FY2021 H12021 H12022 Mass
Slide 9: Comprehensive Product Portfolio – P&C and Crop
Comprehensive Product Portfolio – P&C and Crop ₹ billion Market share across all commercial lines 57.4% 63.2% 72.5% 72.8% Property & Casualty Property & Casualty (P&C) Market Share Product H12021 H12022 Fire 10.9% 13.2% 39.29 31.83 27.69 Engineering 12.9% 15.7% 21.13 Marine Cargo 16.5% 18.4% Liabi
Slide 10: Digital Opportunities
Digital Opportunities Service Excellence Policy Issuance Claims & Servicing Headcount Productivity* 11.5 Mn Policies sourced 1.0 Mn Claims honored 14.8% 13 year CAGR (FY2008 to FY2021) 96.9% issued electronically 79.4% Motor OD claims* through InstaSpect in (97.0% in FY2021) September 2021 (60.8% in
Slide 11: 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 12: Agenda
Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 13: Financial performance
Financial performance ₹ billion Combined ratio (%) Return on average Equity (ROAE) (%) 24.7% 24.9% 114.3% 21.7% 20.8% 21.0% 105.3% 15.2% 100.4% 99.8% 99.7% 99.8% FY2020 FY2021 Q22021 Q22022 H12021 H12022 FY2020 FY2021 Q22021 Q22022 H12021 H12022 Profit before Tax (PBT) Growth Profit after Tax (PAT)
Slide 14: Robust Investment Performance
Robust Investment Performance ₹ billion Investment Leverage2 Realised Return (%) Investment Book 4.13x 4.27x 7.90% 7.85% 4.21x 4.09x 371.95 308.92 291.62 4.46%1 263.27 3.90% 1 2.07% 1 1.96%1 FY2020 FY2021 Q22021 Q22022 H12021 H12022 FY2020 FY2020 FY2021 FY2021 H12021 H12021 H22022 H12022 Investmen
Slide 15: Agenda
Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 16: Update- Scheme of Arrangement
Update- Scheme of Arrangement Regulatory Filings & Approvals Filed an ‘Application for in-principle’ approval to IRDAI on August 26, 2020 Communication received from IRDAI, to approach other Regulatory agencies such as CCI, RBI and SEBI to seek necessary approval while in-principle approval under pr
Slide 17: Update- Scheme of Arrangement
Update- Scheme of Arrangement Regulatory Filings & Approvals BSE Limited and NSE Limited, issued their 'No adverse observation/ No-objection', on the proposed scheme on November 2, 2020 and November 3, 2020 respectively Application made to the NCLT with respect to Scheme of Arrangement on December 3
Slide 18: Agenda
Agenda • Company Strategy • Financial Performance • Update - Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 19: Safeguarding environment
Safeguarding environment An overarching Policy on Environment Management Responsible Environment friendly Protecting the consumption business practices environment • Adapting methods to conserve natural • Reducing carbon footprint by integrating • Adopting green measures for resources and energy dig
Slide 20: Contributing the Social Way
Contributing the Social Way Addressing Creating value for Enabling community customer needs employees awareness and development • Hiring from diverse skill sets; Employee • Aimed at community well-being in areas of skill • Providing best-in-class friendly policies development, sustainable livelihood
Slide 21: Strong Governance
Strong Governance Robust Structure Code of conduct Data protection • Optimum mix of Executive/Non- • Dedicated Information Security • Conducting business with highest Executive Directors as per Policy Council standards of compliance and on Board Diversity ethics • Enforcing leading practices and • P
Slide 22: Agenda
Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview
Slide 23: 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 24: Thank you
9 ICICI ELombard Thank you
Slide 25: Annexure
Annexure icici € Lombard Nibhaye Vaade
Slide 26: Loss Ratio
Loss Ratio Particulars FY2020 FY2021 Q22021 Q22022 H12021 H12022 Motor OD 68.9% 62.2% 58.9% 62.8% 60.8% 64.0% Motor TP 84.4% 69.7% 61.6% 74.6% 65.8% 73.4% Health,Travel & PA 69.9% 78.0% 81.9% 71.4% 78.8% 109.3% Crop 110.6% 111.2% 111.3% 126.5% 111.2% 125.2% Fire 64.0% 63.7% 77.2% 64.6% 84.5% 75.1% M
Slide 27: Abbreviations & Glossary
Abbreviations & Glossary: AI - Artificial Intelligence IoT – Internet of Things API – Application Programming Interface IRDAI – Insurance Regulatory and Development Authority of India AY – Accident Year ML- Machine Learning BOT- Built-Operate-Transfer NCLT- National Company Law Tribunal CAGR – Compo
Slide 28: 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 11.1%** Cyclone Yaas* 2021 200.00 7.00 1.6%** Cyclone Amphan* 2020 1,000.00 15.00 8.7%** Maharashtra, Gujarat, Karnatak
Slide 29: Reserving Triangle Disclosure – Total
1 Reserving Triangle Disclosure – Total ₹ billion Incurred Losses and Allocated Expenses (Ultimate Movement) As at March 31, 2021 Prior AY 12 AY 13 AY 14 AY 15 AY 16 AY 17 AY 18 AY 19 AY 20 AY 21 End of First Year 75.77 22.53 27.97 35.96 34.16 39.13 49.49 52.41 65.27 72.72 70.56 One year later 76.31
Slide 30: Reserving Triangle Disclosure
Reserving Triangle Disclosure Incurred Losses and Allocated Expenses (Ultimate Movement) – IMTPIP ₹ billion As at March 31, 2021 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
Slide 31: 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
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