Icici Lombard General Insurance Co. Ltd. · NSE:ICICIGI
Icici Lombard General Insurance — Investor Presentation (September 2018)
22 slides from Icici Lombard General Insurance's investor presentation, September 2018
Slide 1: Corporate Presentation
Corporate Presentation Gicici ELombard ‘Nibhaye Vaade
Slide 2: Agenda
Agenda Industry Overview Company Strategy Financial Performance 2
Slide 3: Agenda
Agenda Industry Overview Company Strategy Financial Performance 3
Slide 4: India Non-life Insurance Market - Large Addressable Market
India Non - life Insurance Market - Large Addressable Market Significantly underpenetrated (%) Premium as a % of GDP (CY17) (US$) 5. 00 World: 2.80 4th largest non-life 4. 28 insurance market in Asia 2. 74 2. 36 2. 34 1. 89 1. 77 1. 04 0. 93 GDPI growth at CAGR of 0. 46 17% from FY 2001 to FY 20
Slide 5: Industry has witnessed steady growth
Industry has witnessed steady growth ` billion 1,507 Gr owth 18.1% 15.8% 16.7% 469 12.2% 333 373 261 FY2007 FY2011 FY2018 Q1 FY2018 Q1 FY2019 FY2007 FY2011 FY2018 Q1 FY2018 Q1 FY2019 Industry has grown at CAGR of 17% in the last 16 years 5 Source: Latest IRDAI & GI Council report
Slide 6: Agenda
Agenda Industry Overview Company Strategy Financial Performance 6
Slide 7: 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
Slide 8: Comprehensive Product Portfolio
Comprehensive Product Portfolio Product Mix 9% 9% 11% 11% 20% 19% Others 22% 21% 3% 3% Crop 7% 7% 4% 4% 9% 9% Marine 19% 19% 18% 20% Fire 17% 18% Health & PA 15% 15% Motor TP 26% 25% 21% 20% Motor OD FY2017 FY2018 Q1 FY2018 Q1 FY2019 Diversified product mix– motor, health & personal accident, crop
Slide 9: Comprehensive Product Portfolio: Motor and Health & PA
Comprehensive Product Portfolio ` billion 7 8 .9% 7 7 .4% 7 7 .9% 7 5 .1% Private car, Two wheeler and Commercial Vehicle 9 .4% 1 5.6% 1 3.0% 6 .8% contributed 50.0%, 32.7% and 17.3% respectively of Motor GDPI1 for Q1 FY2019 and 49.0%, 33.2% Motor 27.6 30.6 and 17.8% respectively of Motor GDPI1 fo
Slide 10: Comprehensive Product Portfolio: Crop and Property
Comprehensive Product Portfolio ` billion 8 4 .2% 135.0% 140.1% 116.8% 263.0% 1 0.2% 6 8 .3% 1 2 .0% Covered farmers in 4 states and 30 districts Crop 21.5 23.7 in Kharif season FY2019 compared to 7 7.2 8.1 states and 56 districts in Kharif FY2018 FY2017 FY2018 Q1 FY2018 Q1 FY2019 Loss Ratio Growt
Slide 11: Digital Drive: Enabling business transformation
Digital Drive: Enabling business transformation Risk selection Robotics / ChatBOTs Claims management File processing AI* & ML Fraud detection Lean Innovation Operations Technology Dashboards for service & Analytics Customer portal excellence Data Driven decision Intermediary app making Customer OneV
Slide 12: 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 Spread of risk across panel of quality re-insurers Reinsurance
Slide 13: Agenda
Agenda Industry Overview Company Strategy Financial Performance 13
Slide 14: Financial performance
Financial performance C ombined Ratios (%) Retu rn on average Equity (%) 103. 9% 24. 7% 20. 8% 22. 4% 102. 4% 20. 3% 100. 2% 98. 8% FY2017 FY2018 Q1 FY2018 Q1 FY2019 FY2017 FY2018 Q1 FY2018 Q1 FY2019 Profit before Tax (` bn) Profit after Tax (` bn) 28.6% 31.4% 56.6% 47.5% 38.3% 22.8% 63.5% 35.1% 12.
Slide 15: Long term value creation
Long term value creation GDPI ( ` bn) Policies Issued (Million) 123. 57 23. 5 33. 07 3. 5 FY2008 FY2018 FY2008 FY2018 Growth Profit After Tax (` bn) Book V alue Per S hare * ( ` ) 8. 62 100. 0 28. 5 1. 03 FY2008 FY2018 FY2008 FY2018 GWP Growth excluding crop insurance business @14.1% for Q1 FY2019
Slide 16: Robust Investment Performance
Robust Investment Performance Investment Book (` bn) Investment Leverage In vestment Incomes (` bn) 1 2.21X 3.90X 14. 82 2 181. 93 2. 19 23. 74 FY2008 FY2018 FY2008 FY2018 Investment portfolio mix3 at FY2018 : Corporate bonds (47.57%), G-Sec (29.94%) and equity (16.67%) Strong investment leverag
Slide 17: Thank you
Thank you /gicici Elombard ( J Nibhaye Vaade
Slide 18: Annexure
Annexure ICICI ELombard 1 Nibhaye Vaade
Slide 19: Loss ratio
Loss ratio Partic u lars FY 2017 FY 2018 Q1 2018 Q1 2019 Motor OD 64. 2% 53. 7% 62. 2% 62. 9% Motor TP 97. 4% 107. 1% 97. 5% 90. 6% Health 97. 9% 77. 6% 86. 0% 85. 5% PA 41. 3% 23. 9% 43. 8% 56. 5% C rop 84. 2% 135. 0% 140. 1% 116. 8% Fire 68. 4% 43. 1% 60. 7% 115. 2% Marin e 83. 9% 54. 2% 75. 0% 81
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
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
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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