ICICI Lombard General Insurance Company Limited has informed the Exchange about Investor Presentation
Ref. No.: MUM/SEC/472-01/2024
January 16, 2024
To, The Manager Listing Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai – 400 001
The Manager Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot C/1 G Block, Bandra Kurla Complex, Mumbai – 400 051
Scrip code: Equity (BSE: 540716/ NSE: ICICIGI); Debt (NSE: ILGI29)
Dear Sir/Madam,
Subject: Press Release and Investor Presentation on performance review of the Company for the quarter and nine-months ended December 31, 2023
In continuation to our letter dated January 16, 2024 informing about audited financial results of the Company for the quarter and nine-months ended December 31, 2023.
Please find enclosed herewith press release on performance review of the Company for the quarter and nine-months ended December 31, 2023. Also enclosed herewith investor presentation on performance review of the Company for the nine-months ended December 31, 2023.
The above information will also be made available on the Company's website at www.icicilombard.com.
The audio recording and transcript of the earnings call will be hosted on the investor relations section of Company’s website at www.icicilombard.com within the prescribed regulatory timelines.
You are requested to kindly take the same on your records.
Thanking you.
Yours faithfully,
For ICICI Lombard General Insurance Company Limited
Vikas Mehra Company Secretary
Encl. As above
ICICI Lombard General Insurance Company Limited
IRDA Reg. No. 115 CIN: L67200MH2000PLC129408 Mailing Address: Registered Office: Toll free No. : 1800 2666 401 & 402, 4th Floor, Interface 11, ICICI Lombard House, 414, Veer Savarkar Marg, Email: customersupport@icicilombard.com New Linking Road, Malad (West), Near Siddhi Vinayak Temple, Prabhadevi, Website: www.icicilombard.com
You can contact us at:
Mumbai - 400 064 Mumbai - 400 025
January 16, 2024
PERFORMANCE FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2023
Gross Direct Premium Income (GDPI) of the Company stood at ₹ 187.03 billion in 9M FY2024 compared to ₹ 160.48 billion in 9M FY2023, a growth of 16.5%, which was higher than the industry growth of 14.0%. Excluding crop and mass health, GDPI growth of the Company was at 15.6%, which was higher than the industry growth of 15.2% in 9M FY2024.
o GDPI of the Company was at ₹ 62.30 billion in Q3 FY2024 as against ₹ 54.93 billion in Q3 FY2023, growth of 13.4%. This growth was higher than industry growth of 12.3%. Excluding crop and mass health, GDPI growth of the Company was at 12.0%, which was higher than the industry growth of 11.3% in Q3 FY2024.
Combined ratio stood at 103.7% for 9M FY2024 compared to 104.6% for 9M FY2023. Excluding the impact of CAT losses of ₹ 1.37 billion, the combined ratio was 102.6% in 9M FY2024.
o Combined ratio stood at 103.6% in Q3 FY2024 as against 104.4% in Q3 FY2023. Excluding the impact of CAT losses of ₹ 0.54 billion in Q3 FY2024, the combined ratio was 102.3%.
Profit before tax (PBT) grew by 20.6% to ₹ 18.57 billion in 9M FY2024 as against ₹ 15.40 billion in 9M FY2023 whereas PBT grew by 23.3% to ₹ 5.74 billion in Q3 FY2024 as against ₹ 4.65 billion in Q3 FY2023.
Consequently, Profit after tax (PAT) grew by 8.3% to ₹ 13.99 billion in 9M FY2024 as against ₹ 12.92 billion in 9M FY2023. Excluding one time impact of reversal of tax provision in Q2 FY2023, PAT grew by 20.2% in 9MFY2024.
1
o PAT grew by 22.4% to ₹ 4.31 billion in Q3 FY2024 from ₹ 3.53 billion in Q3
FY2023.
Return on Average Equity (ROAE) was 17.1% in 9M FY2024 compared to 18.1% in 9M FY2023 while ROAE was 15.3% in Q3 FY2024 compared to 14.3% in Q3 FY2023.
Solvency ratio was 2.57x at December 31, 2023 as against 2.59x at September 30, 2023 and higher than the minimum regulatory requirement of 1.50x. Solvency ratio was 2.51x at March 31, 2023.
Operating Performance Review
(₹ billion)
Q3 FY2023
Q3 FY2024
Growth %
9M FY2023
9M FY2024
Growth %
FY2023
54.93 4.65 3.53
62.30 5.74 4.31
13.4% 23.3% 22.4%
160.48 15.40 12.92
187.03 18.57 13.99
16.5% 20.6% 8.3%*
210.25 21.13 17.29
Financial Indicator s GDPI PBT PAT
Ratios
Financial Indicators
Q3 FY2023
Q3 FY2024 9M FY2023 9M FY2024 FY2023
ROAE (%) – Annualised Combined Ratio (CoR)
14.3%
15.3%
18.1%
17.1%
17.7%
104.4%
103.6%**
104.6%
103.7%** 104.5%
* Excluding the reversal of tax provision in Q2 FY2023, PAT grew by 20.2% in 9M FY2024.
** Excluding the impact of CAT losses CoR was 102.3% for Q3 FY2024 and 102.6% for 9M FY2024.
2
Notes:
Combined Ratio = (Net Incurred Claims/ Net Earned Premium) + (Management Expenses – Commission on Reinsurance)/ Net Written Premium
Management Expenses = Commission Paid Direct + Commission Paid on Reinsurance inward + Operating expenses related to insurance business
Return on Average Equity (ROAE) = Profit After Tax / ((Opening Net Worth + Closing Net Worth)/2)
Net Worth = Share Capital + Reserves & Surplus
About ICICI Lombard General Insurance Company Limited
ICICI Lombard is the leading private general insurance company in the country. The Company offers a comprehensive and well-diversified range of products through multiple distribution channels, including motor, health, crop, fire, personal accident, marine, engineering, and liability insurance. With a legacy of over 21 years, ICICI Lombard is committed to customer centricity with its brand philosophy of ‘Nibhaaye Vaade’. The company has issued over 32.7 million policies, settled 3.6 million claims and has a Gross Written Premium (GWP) of ₹ 217.72 billion for the year ended March 31, 2023. ICICI Lombard has 305 branches and 12,865 employees, as on March 31, 2023.
ICICI Lombard has been a pioneer in the industry and is the first large scale insurance company in India to migrate its entire core systems to cloud. With a strong focus on being digital led and agile, it has launched a plethora of tech-driven innovations, including the industry first Face Scan on its signature insurance and wellness App - IL TakeCare, with over 6.9 million downloads. The company has won several laurels including ET Corporate Excellence Awards, Golden Peacock Awards, FICCI Insurance Awards, National CSR awards etc. for its various initiatives. For more details log on to www.icicilombard.com
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For further press queries, please get in touch with Ms. Rima Mane +91 99877 87103 rima.mane@icicilombard.com to / corporate.communication@icicilombard.com
send
an
or
For investor queries please get in touch with Mr. Sarvesh Agrawal +91 70450 91174 email an send to sarvesh.agrawal@icicilombard.com / ir@icicilombard.com
or
Disclaimer
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 forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion in business, the impact of any acquisitions, technological implementation and changes, the actual growth in demand for insurance products and services, investment income, cash flow projections, our exposure to market risks, policies and actions of regulatory authorities; impact of competition; the impact of changes in capital, solvency or accounting standards, tax and other legislations and regulations in the jurisdictions as well as other risks detailed in the reports filed by ICICI Bank Limited, our Promoter company with the United States Securities and Exchange Commission. ICICI Bank and we undertake no obligation to update forward-looking statements to reflect events or circumstances after the date there.
4
9M2024 Performance Review
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 forward-looking statements involve a number of risks,
uncertainties and other factors that could cause actual results to differ materially from those suggested by the
forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully
implement our strategy, our growth and expansion in business, the impact of any acquisitions, technological
implementation and changes, the actual growth in demand for insurance products and services, investment
income, cash flow projections, our exposure to market risks, policies and actions of regulatory authorities; impact
of competition; the impact of changes in capital, solvency or accounting standards, tax and other legislations and
regulations in the jurisdictions as well as other risks detailed in the reports filed by ICICI Bank Limited, our
Promoter company with the United States Securities and Exchange Commission. ICICI Bank and we undertake
no obligation to update forward-looking statements to reflect events or circumstances after the date there
Agenda
• Company Strategy • Financial Performance • ESG Initiatives •
Industry Overview
Agenda
• Company Strategy • Financial Performance • ESG Initiatives •
Industry Overview
ICICI Lombard General Insurance – Pillars of Strength
Consistent Market Leadership and growth
• Leading private sector non-life insurer in India since FY2004 (GDPI basis)
• 15 years GDPI CAGR
(FY2008 – FY2023) for IL: 13.1%
• Market share 9M2024 (GDPI basis): 8.8%
Diverse products and multi- channel distribution
• Comprehensive and
diverse product portfolio
• Individual Agents*
1,25,088
• Expanding distribution network to increase penetration in Tier 3 and Tier 4 cities • Number of Virtual
Offices: 917
Excellence in Customer service and Technology
Risk Management
Capital Conservation
• Leveraging on Artificial Intelligence, Machine Learning, IoT etc. throughout the customer life cycle
• Dedicated “digital arm” to improve speed of delivery for D2C business
• Profitable growth
using risk selection and data analytics
• Maintain robust
reserves
• Prudent investment
management
• Maintain high level of Solvency ratio as against regulatory minimum requirement of 1.50x
• Solvency ratio 2.57x as at December 31, 2023
*including POS
IoT – Internet of Things
5
Key Highlights
*
*
* Excluding the impact of CAT losses of ₹ 1.37 billion in 9M2024 and ₹ 0.28 billion in 9M2023 the CoR was 102.6% in 9M2024 and 104.3% in 9M2023 respectively
6
Particulars(₹ billion)FY2022ActualFY2023Actual9M2023Actual9M2024ActualGross Written Premium185.62 217.72 164.32 193.31 Gross Direct Premium Income (GDPI)179.77 210.25 160.48 187.03 GDPI Growth28.4%17.0%20.6%16.5%Combined Ratio (CoR)108.8%104.5%104.6%103.7%Profit after Tax12.71 17.29 12.92 13.99 Return on Average Equity14.7%17.7%18.1%17.1%Solvency Ratio2.46x2.51x2.45x2.57xBook Value per Share185.57 211.61 202.68 231.59 Basic Earnings per Share25.91 35.21 26.31 28.47 Comprehensive Product Portfolio
0%
0%
Diversified product mix– motor, health, travel & personal accident, fire, marine, crop and others
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23%20%19%18%23%21%21%19%22%27%26%29%16%15%15%14%3%3%4%3%4%4%5%6%9%10%10%11%FY2022FY2023 9M2023 9M2024Product MixOthersCropMarineFireHealth, Travel & PAMotor TPMotor OD Comprehensive Product Portfolio: Motor
₹ billion
Motor GDPI Mix
Type
Private car
Two Wheeler
Commercial Vehicle
9M2023
9M2024
49.6%
28.2%
22.2%
51.4%
27.8%
20.8%
r o t o M
Loss cost driven micro-segmentation No revision in Motor TP base premium for FY2024 Advance premium at December 31, 2023 : ₹ 33.04 billion ( ₹ 32.89 billion at September 30, 2023) 67% of Agency and Direct claims serviced through PPN in Q32024
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40.6841.5130.1033.8742.1244.3133.9034.68FY2022FY2023 9M2023 9M2024Motor TotalOD GDPITP GDPILoss Ratio82.8070.9%85.8272.4%68.5564.9%64.0070.4% Comprehensive Product Portfolio: Health, Travel & PA
Health, Travel & PA GDPI Mix
Type
Individual
Group – Others Group Employer-Employee Mass
9M2023 9M2024
18.8% 17.3%
29.0% 30.0% 52.1% 52.6% 0.1%
0.1%
Investments made towards accelerating growth in areas of health distribution
Retail health agency vertical grew by 22.2% for 9M2024
Price increase in Retail Health Indemnity renewal book of ~19% in February 2023
Bancassurance and Key Relationship Groups grew at 21.5% in 9M2024
₹ billion
9
40.07 55.92 41.39 53.19 FY2022FY2023 9M2023 9M2024Health, Travel & PALoss Ratio77.3%91.7%80.1%78.0% Comprehensive Product Portfolio: P&C
₹ billion
Property & Casualty (P&C) Market Share
Product Fire Engineering Marine Cargo Liability
9M2023 12.8% 16.3% 18.0% 16.7%
9M2024 13.0% 17.8% 19.4% 19.1%
Crop
Crop constitutes 6.2% of the GDPI Won 1 cluster in Maharashtra comprising of 3 districts in Rabi & Kharif season for 9M2024
Conservative reserving philosophy
Source: IRDAI & GI Council
10
50.24 59.73 46.35 53.62 FY2022FY2023 9M2023 9M2024Loss Ratio59.4%Property& Casualty59.7%71.4%60.5%6.66 8.78 8.74 11.67 FY2022FY2023 9M2023 9M2024CropLossRatio107.9%80.1%91.9%89.6% Digital Opportunities
Policy Issuance 26.2 Mn Policies sourced
99.3% issued electronically (96.7% in FY2023)
AI and ML Solutions 63.6% cashless authorization through AI for GHI in December 2023 (61.9% in March 2023)
Service Excellence
Claims & Servicing 2.1 Mn Claims honored 64 Claims NPS in Q22024 (72 in Q12024 )
Automation and Scale
DIY Servicing
1.7x increase in DIY transactions in Q32024 (YoY)
9.7% reduction in human touchpoints per policy in Q32024 (YoY)
ILTakeCare App
8.5 Mn+ ILTakeCare user downloads (4.6 Mn at March 31, 2023)
Dynamic Workforce 13.2% 15 year Productivity CAGR (FY2008 to FY2023)
End-to-end digital enablement for hybrid and part-time working
11
Risk Management
Underwriting
Reinsurance
Predictive ultimate loss model to improve risk selection
Diversified exposure across geographies and products
Historically lower proportion of losses from catastrophic
events than overall market share
27
Spread of risk across panel of quality re-insurers
Conservative level of catastrophe (CAT) protection
Investments
Reserving
Tighter internal exposure norms as against regulatory
IBNR utilization improving trend indicates robustness of
limits
reserves
High proportion of Debt portfolio in sovereign or AAA
First Company in Industry to disclose reserving triangles
rated securities* (88.4%)
in Annual report since FY2016
All Debt securities are rated AA & above
Zero instance of default on the IL’s debt portfolio
since inception
* domestic credit rating
28
12
Agenda
• Company Strategy • Financial Performance • ESG Initiatives •
Industry Overview
Financial performance
**
*
**
₹ billion
#
* Excluding the impact of CAT losses of ₹ 0.54 billion in Q32024 the combined ratio was 102.3% ** Excluding the impact of CAT losses of ₹ 1.37 billion in 9M2024 and ₹ 0.28 billion in 9M2023 the CoR was 102.6% in 9M2024 and 104.3% in
9M2023 respectively
# Excluding the reversal of tax provision in Q22023, PAT grew by 20.2% in 9M2024
14
12.71 17.29 3.534.3112.9213.99FY2022FY2023Q32023Q320249M20239M2024Profit after Tax (PAT) 36.0%22.4%Growth8.3%108.8%104.5%104.4%103.6%104.6%103.7%FY2022FY2023Q32023Q320249M20239M2024Combinedratio (CoR) (%)14.7%17.7%14.3%15.3%18.1%17.1%FY2022FY2023Q32023Q320249M20239M2024Return on average Equity (ROAE) (%)16.84 21.13 4.655.7415.4018.57FY2022FY2023Q32023Q320249M20239M2024Profit before Tax (PBT) 25.5%23.3%Growth20.6% Robust Investment Performance
₹ billion
2
1
1
1
1
Investment portfolio mix3 for 9M2024 : Corporate bonds 40.4%, G-Sec 42.8% and equity 10.6% Strong investment leverage Unrealised gain of ₹ 10.12 billion as on December 31, 2023 Unrealised gain on equity4 portfolio at ₹ 11.85 billion Unrealised loss on other than equity4 portfolio at ₹ 1.73 billion
1 Absolute Returns 2 Total investment assets (net of borrowings) / net worth 3 Investment portfolio mix at cost 4 Equity includes units of mutual funds, Equity ETF, REIT and InvIT
15
8.45%7.50%1.88%1.84%5.47%5.89%FY2022FY2023Q32023Q320249M20239M2024Realised Return (%)Realised Return (%)387.86431.80414.51468.67FY2022FY20239M20239M2024Realised Return (%)InvestmentBookInvestment Leverage4.23x4.15x4.16x4.11x Agenda
• Company Strategy • Financial Performance • ESG Initiatives •
Industry Overview
Safeguarding environment
An overarching Policy on Environment Management
Responsible consumption
Environment friendly business practices
Protecting the environment
• Adapting methods resources and energy
to
conserve
natural
• Insurance
solutions
enabling
transition
towards low carbon economy
• Adopting
measures green communication across organisation
for
• Targets
sourcing renewable energy to meet energy requirements
towards
taken
• Incorporating business processes that promote
reduction in use of paper
• GHG Emissions assured by an independent
external assurance provider
• Reduce,
Reuse
and
Recycle
for consumables
• Reducing carbon footprint by integrating of
tools for sourcing and servicing
digital business
• Value-added risk management solutions that enable customers to take effective measures towards and hazardous events impacting environment.
reducing
footprint
carbon
• Consideration climate
and investment
of
the change
decisions
environment
in
• Flexi-Able
initiatives
in digitization, reduction in business travel and environmental footprint
resulting
• “Make a difference” awareness campaign
for employees across verticals
• Focused efforts towards reducing carbon
emissions
• Effective disposal of E-waste
For more information on our ESG performance, please Click Here
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Contributing the Social Way
Addressing customer needs
Creating value for employees
Enabling community awareness and development
• Providing best-in-class experience
• Hiring from diverse skill sets; Employee
• Innovative products and services
• AI-based solutions and digital claim
forms for instant renewals/claims
• Usage of cognitive computing to reducing
fasten claim processing, overall response time
• Providing end to end digital solutions
• Robust grievance redressal
mechanism
friendly policies
• Building capabilities in knowledge, skills and competencies through intense and customized training programmes at defined stages of employee career
• DEI
targets taken towards promoting
higher representation of diversity
• Customised programmes
employee
support
• Aimed at community well-being in areas of skill development, sustainable livelihood, healthcare, road safety and wellness
• “Caring Hands” providing free spectacles for children
with poor vision
• “Ride to Safety” raising awareness for road safety and
bringing about behavioral change
• "Niranjali"
to provide children with clean and safe
drinking water
performance
• Driving a through linkage to rewards
differentiation
culture
and
• IL TakeCare app influencing behaviour to reduce health
care and other cost in longer term
• Installed “Solar panels” on school roof tops
For more information on our ESG performance, please Click Here
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Strong Governance
Robust Structure
Code of conduct
Data protection
• Optimum mix
of Directors as per Policy on Board Diversity
Executive/Non-Executive
• Conducting business with highest standards of compliance and ethics
• Performance evaluation of Board, Committees,
Chairperson, Individual Directors
• Zero Fraud
tolerance
approach
towards
• ERM framework* for managing core risks and internal Risk Governance framework of
robust executive committees
•
Integrating ESG as key risk into ERM framework
• CSR & Sustainability Board Committee oversight
to drive ESG
• Disclosures of BRSR since FY2022 (For
latest report Click Here )
• Policies like Prohibition of
Insider
Trading, Anti-Money Laundering
• Encouraging
to through Whistle
report
Blower
concerns Policy
• Supplier Code of Conduct to embrace business
sustainable
and
ethical practices
• Dedicated Information Security Council
• Enforcing leading practices and controls through effective Cyber security Policy and Framework
• Focused approach to cyber security with the triad of Confidentiality, Integrity and Availability (CIA)
• Adopted leading practices in Cloud Security** and expanded the ambit of Information Security** certification
• Implemented data security controls and
practices
For more information on our ESG performance, please Click Here *ISO 31000:2018 compliance certification by the British Standards Institution (BSI) for effective ERM framework **ISO 27001:2013 for Information Security & ISO 27017:2015 for Cloud Security by Bureau Veritas Quality International
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Agenda
• Company Strategy • Financial Performance • ESG Initiatives •
Industry Overview
Non - life Insurance Market Large Addressable Market
Significantly underpenetrated
India: US$ 31.54 billion
EA*: US$ 396.14 billion
World: US$ 3,969.20 billion
4th largest non-life insurance market in Asia and 15th
largest globally in 2022
Non-life Insurance penetration in India was around 1/4th
of Global Average in 2022
Operates under a “cash before cover” model
(US$)
*EA – Emerging Asia Market
Source: Sigma 3/2023 Swiss Re
20
9.05.82.42.32.21.91.91.00.60.5Premium as a % of GDP (CY22)6,868 1,836 1,111 748 234 168 14987 26 22 Non-Life Insurance Density (Premium per capita) (CY22) Industry has witnessed steady growth
#
#
₹ billion
#
#
*IL CAGR FY2003 – FY2008 **Excluding Standalone Health Insurers #Growth
Tariff era
Non-Tariff era
Industry GDPI
15 year Industry CAGR (FY2008 to FY2023) - GDPI 15.5%; PAT : Industry made losses in FY2023 15 year IL CAGR (FY2008 to FY2023) - GDPI: 13.1% ; PAT: 20.7% Source : IRDAI and GI Council
21
100.87294.98 2,207.72 2,569.12 1,872.32 2,134.86 FY2001FY2008FY2022FY20239M20239M2024Industry CAGR16.6%73.3%*IL CAGR15.5%12.9%17.0%16.4%MarketShare of Private Players**0.1%36.6%49.7%51.4%51.4%53.8%16.5%14.1% Thank you
Annexure
Loss Ratio
24
Particulars FY2022 FY2023 Q32023 Q32024 9M2023 9M2024 Motor OD 68.1%72.6%73.0%64.9%73.7%65.3% Motor TP 74.0%72.2%61.9%61.6%67.3%64.6% Health,Travel & PA 91.7%77.3%78.2%79.2%78.0%80.1% Crop 107.9%80.1%111.8%99.0%89.6%91.9% Fire 53.1%49.3%49.8%68.2%49.0%70.6% Marine 77.6%72.4%86.1%74.7%75.1%75.8% Engineering 69.3%55.1%64.6%60.6%70.8%79.6% Other 51.3%63.0%57.6%63.6%59.5%66.4% Total 75.1%72.4%70.3%70.0%71.7%71.5% Abbreviations & Glossary:
AI - Artificial Intelligence App- Application AY – Accident Year BAGI – Bharti Axa General Insurance BRSR – Business Responsibility and Sustainability Reporting BSI – British Standards Institution CAGR – Compounded Annual Growth Rate CAT – Catastrophic CIA – Confidentiality, Integrity, Availability CoR – Combined Ratio CSR – Corporate Social Responsibility CY – Calendar Year D2C – Direct to Consumers DEI - Diversity, Equity & Inclusion DIY – Do It Yourself EA – Emerging Asia Markets ERM – Enterprise Risk Management ESG – Environmental, Social and Governance ETF – Exchange-traded Fund E-Waste – Electronic Waste Excl - Excluding FY – Financial Year G-Sec – Government Securities GDP – Gross Direct Product GDPI – Gross Direct Premium Income GHG – Green house Gas GHI – Group Health Insurance GI Council – General Insurance Council
IBNR – Incurred But Not Reported IL – ICICI Lombard General Insurance Company Limited ISO – International Organization for Standardization IMTPIP – Indian Third Party Insurance Pool InvIT- Infrastructure Investment Trust IoT – Internet of Things IRDAI – Insurance Regulatory and Development Authority of India J&K – Jammu & Kashmir ML- Machine Learning Motor TP – Motor Third Party Mn - Million NPS – Net Promoter Score OD – Own Damage OEM – Original Equipment Manufacturer PA – Personal Accident PAT – Profit After Tax PBT – Profit Before Tax P&C – Property & Casualty POS – Point of Sales PPN – Preferred Partner Network REIT- Real Estate Investment Trust ROAE – Return on Average Equity SEBI – Securities Exchange Board of India w.e.f. – With effect from ₹ - Indian Rupees US$ - United State’s dollar UT – Union Territory “x” - times
•
For calculation of CAGR merged entity figures are considered for FY2023
26
Impact of catastrophic events: Historical snapshot
Catastrophic Event
Cyclone Michaung North India Floods# Cyclone Biparjoy1 Cyclone Tauktae* Cyclone Yaas* Cyclone Amphan* Western and Southern India Floods Cyclone Fani Kerala floods Chennai floods Cyclone Hudhud J&K floods North-east floods
Year
2023 2023 2023 2021 2021 2020 2019 2019 2018 2015 2014 2014 2014
Economic Losses 120.00 150.00 60.00-80.00 150.00 200.00 1,000.00 709.70** 120.00 300.00 150.00 715.00 388.05 393.30
Insured losses* 25.00 12.00 15.00 15.00 7.00 15.00 20.00 12.25 25.00 49.40 41.60 15.60 15.60
₹ billion
Our Share of Insured losses 5.88% 7.97% 5.24% 8.55%** 0.15%** 7.96%** 3.22% 2.24% 2.66% 6.17% 2.01% 2.54% ***
#North India flood insured losses estimates as per SBI research report on protection gap in India 1 Cyclone Biparjoy insured losses is an indicative number based on estimates received from surveying firms; economic losses estimates are still awaited *estimates based on market sources **Combined for IL and BAGI
***There was no separate reporting of losses resulting from these floods since this did not rise to the level of a catastrophic event for us
Other sources : Google search & estimates
12
27
Reserving Triangle Disclosure: Total1
₹ billion
1As at March 31, 2023; Losses and expenses in the above tables do not include the erstwhile Indian Motor Third Party Insurance Pool (IMTPIP) Merged entity numbers are presented for all the financial years AY: Accident Year
28
Incurred Losses and Allocated Expenses (Ultimate Movement)As at March 31, 2023Prior*AY 14AY 15AY 16AY 17AY 18AY 19AY 20AY 21AY 22AY 23End of First Year 139.78 44.87 44.37 49.39 59.24 62.46 77.00 87.33 83.76 101.17 114.84 One year later 138.57 43.15 44.19 48.63 59.29 60.42 75.64 85.21 81.82 98.11 Two years later 139.13 43.09 43.83 48.11 58.81 59.34 75.33 84.76 81.75 Three years later 139.60 43.13 43.17 47.72 58.47 58.53 74.73 83.71 Four years later 139.97 42.59 42.96 47.21 58.00 57.62 73.42 Five years later 140.00 42.40 42.35 47.04 57.78 56.65 Six years later 140.12 42.09 42.36 47.01 57.21 Seven Years later 139.94 42.12 42.19 46.68 Eight Years later 140.29 42.11 42.04 Nine Years later 140.31 42.10 Ten Years later 140.20 Deficiency/ (Redundancy) (%)0.3%-6.2%-5.3%-5.5%-3.4%-9.3%-4.6%-4.2%-2.4%-3.0%Unpaid losses and Loss Adjustment ExpensesAs at March 31, 2023Prior*AY 14AY 15AY 16AY 17AY 18AY 19AY 20AY 21AY 22AY 23End of First Year 24.43 21.93 21.88 25.43 31.33 38.29 43.57 45.95 43.02 47.54 55.35 One year later 15.22 12.67 14.89 17.36 20.28 21.59 31.09 32.75 27.64 30.68 Two years later 13.13 10.64 12.53 14.47 15.90 17.93 22.85 28.82 23.89 Three years later 11.21 9.16 10.20 12.20 13.04 15.79 20.41 25.02 Four years later 9.96 7.45 8.76 9.99 11.59 13.83 17.40 Five years later 8.48 6.33 7.07 9.09 10.45 11.80 Six years later 7.43 5.19 6.60 8.38 9.05 Seven Years later 6.21 4.76 5.97 7.27 Eight Years later 6.12 4.43 5.23 Nine Years later 5.69 4.01 Ten Years later 4.96 Reserving Triangle Disclosure: IMTPIP
₹ billion
Merged Entity numbers are presented from March 31, 2015. For consistent representation, Deficiency/(Redundancy) (%) is calculated by comparing numbers as on March 31, 2023 with March 31, 2015 AY: Accident Year
29
Incurred Losses and Allocated Expenses (Ultimates movement)As at March 31, 2023AY 08AY 09AY 10AY 11AY 12AY 13End of First Year2.71One year later3.852.72Two years later4.493.853.54Three years later5.814.495.523.61Four years later6.165.815.795.723.68Five years later2.616.166.165.886.174.13Six years later2.616.466.286.296.864.16Seven Years later2.866.556.396.746.854.15Eight Years later2.956.696.896.736.854.21Nine Years later3.006.986.896.746.864.33Ten Years later3.096.986.896.936.994.26Eleven Years later3.096.986.977.106.97Twelve Years later3.097.197.167.11Thirteen Years later3.097.407.21Fourteen Years later3.167.44Fifteenth Years later3.14Deficiency/ (Redundancy) (%)9.8%15.0%17.1%22.8%26.3%20.5%Unpaid losses and Loss Adjustment ExpensesAs at March 31, 2023AY 08AY 09AY 10AY 11AY 12AY 13End of First Year2.67One year later3.412.30Two years later3.142.572.47Three years later3.172.382.891.92Four years later2.672.512.412.281.50Five years later0.862.052.171.832.041.57Six years later0.631.891.701.702.291.29Seven Years later0.721.501.411.741.831.01Eight Years later0.651.231.521.401.430.94Nine Years later0.551.191.181.101.290.91Ten Years later0.520.890.891.111.210.73Eleven Years later0.430.630.851.050.98Twelve Years later0.320.690.910.87Thirteen Years later0.280.750.71Fourteen Years later0.270.59Fifteenth Years later0.17 Reserving Triangle Disclosure: Motor-TP (excl. IMTPIP)
₹ billion
Merged entity numbers are presented for all financial years AY: Accident Year
30
Incurred Losses and Allocated Expenses (Ultimates movement)As at March 31, 2023Prior*AY 14AY 15AY 16AY 17AY 18AY 19AY 20AY 21AY 22AY 23End of First Year 17.83 10.74 12.63 15.97 17.05 19.98 24.41 31.55 25.15 28.07 35.39 One year later 17.86 10.59 12.76 16.01 17.18 19.89 24.45 31.23 25.15 28.07 Two years later 18.59 10.86 12.99 16.11 17.13 19.65 24.14 31.23 25.15 Three years later 18.96 11.10 12.93 16.10 16.94 18.94 23.87 30.35 Four years later 19.51 11.00 12.95 15.88 16.56 18.20 22.59 Five years later 20.20 10.99 12.65 15.76 16.45 17.27 Six years later 20.56 10.85 12.62 15.75 15.95 Seven Years later 20.65 10.85 12.48 15.47 Eight Years later 21.21 10.85 12.35 Nine Years later 21.29 10.85 Ten Years later 21.29 Deficiency/ (Redundancy) (%)19.4%1.0%-2.2%-3.1%-6.4%-13.6%-7.5%-3.8%0.0%0.0%Unpaid losses and Loss Adjustment ExpensesAs at March 31, 2023Prior*AY 14AY 15AY 16AY 17AY 18AY 19AY 20AY 21AY 22AY 23End of First Year 11.98 10.61 12.51 15.79 16.83 19.82 24.22 30.88 24.78 27.51 34.83 One year later 10.11 9.52 11.55 14.32 15.39 18.17 21.93 28.52 22.39 24.85 Two years later 8.88 8.38 10.23 12.40 13.33 15.88 20.07 25.95 19.77 Three years later 7.48 7.37 8.73 10.71 11.36 14.15 18.30 22.70 Four years later 6.59 6.19 7.64 8.97 10.15 12.48 15.48 Five years later 6.03 5.35 6.26 8.24 9.24 10.61 Six years later 5.36 4.38 5.82 7.61 7.93 Seven Years later 4.54 4.03 5.26 6.61 Eight Years later 4.71 3.73 4.56 Nine Years later 4.39 3.34 Ten Years later 3.80 Reserving Triangle Disclosure: Total (excl. Motor-TP)
₹ billion
Merged entity numbers are presented for all the financial years AY: Accident Year
12
31
Incurred Losses and Allocated Expenses (Ultimates movement)As at March 31, 2023Prior*AY 14AY 15AY 16AY 17AY 18AY 19AY 20AY 21AY 22AY 23End of First Year 121.95 34.13 31.74 33.42 42.19 42.48 52.58 55.78 58.61 73.11 79.46 One year later 120.71 32.57 31.43 32.62 42.11 40.54 51.19 53.98 56.67 70.05 Two years later 120.53 32.23 30.84 32.00 41.68 39.69 51.18 53.53 56.59 Three years later 120.64 32.03 30.25 31.62 41.53 39.59 50.86 53.36 Four years later 120.47 31.59 30.00 31.33 41.43 39.42 50.83 Five years later 119.80 31.42 29.70 31.28 41.33 39.38 Six years later 119.55 31.24 29.74 31.26 41.26 Seven Years later 119.29 31.27 29.71 31.21 Eight Years later 119.08 31.26 29.69 Nine Years later 119.02 31.26 Ten Years later 118.91 Deficiency/ (Redundancy) (%)-2.5%-8.4%-6.5%-6.6%-2.2%-7.3%-3.3%-4.3%-3.4%-4.2%Unpaid losses and Loss Adjustment ExpensesAs at March 31, 2023Prior*AY 14AY 15AY 16AY 17AY 18AY 19AY 20AY 21AY 22AY 23End of First Year 12.45 11.32 9.37 9.64 14.50 18.48 19.34 15.08 18.24 20.04 20.52 One year later 5.11 3.15 3.34 3.04 4.89 3.43 9.16 4.23 5.25 5.83 Two years later 4.26 2.26 2.29 2.07 2.57 2.05 2.78 2.86 4.12 Three years later 3.74 1.79 1.47 1.49 1.68 1.64 2.12 2.32 Four years later 3.37 1.26 1.12 1.01 1.44 1.35 1.93 Five years later 2.45 0.98 0.81 0.85 1.21 1.19 Six years later 2.07 0.80 0.78 0.77 1.12 Seven Years later 1.67 0.72 0.71 0.66 Eight Years later 1.41 0.71 0.67 Nine Years later 1.30 0.66 Ten Years later 1.16