[PPT] - Inv nves estor tor Pres esen entation ation Ag Agenda da PowerPoint Presentation

SLIDE 1

Inv nves estor tor Pres esen entation ation

SLIDE 2

2

Indust ustry ry overvie view

Ag Agenda da

Comp mpany ny overview view & str trateg tegy y ICI CICI CI Lom

mba

bard d pe perfor

rma

mance nce

SLIDE 3

3

Indust ustry ry overvie view

Ag Agenda da

Comp mpany ny overview view & str trateg tegy y ICI CICI CI Lom

mba

bard d pe perfor

rma

mance nce

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114 114 262 262 384 384 964 964 FY2002 FY2007 FY2010 FY2016

In Indust stry ry has wi witnessed essed stea eady dy gr growt wth

` billio ion

18% 18% 14% 14% 17% 17%

 Indus

ustr try has grown wn at CAGR of 16% in the last 15 years rs

 Indus

ustr try GDPI I for 9M-2017 : ` ` 915 billio llion n (Gro rowth wth - 31%) 31%)

Sour urce: e: IRDAI AI

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19% 19% 15% 15% 11% 11% 8% 8% 6% 6% 2% 2% 4% 4% 5% 5% 16% 16% 9% 9% 15% 15% 24% 24% 28% 28% 27% 27% 38% 38% 41% 41% 40% 40% 44% 44% 39% 39% 8% 8% 6% 6% 6% 6% 3% 3% 2% 2% 26% 26% 21% 21% 15% 15% 12% 12% 10% 10%

FY2002 FY2007 FY2010 FY2016 9M 9M-2017 Property Marin ine Motor Healt lth & PA Crop Others

In Industry stry produc

duct

t mix

Sour urce: e: IRDAI AI

 Motor and Health contributi

uting ng to growth in the industry

GDPI 114 114 262 262 384 384 964 964 915 915

` billio ion

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In Industry stry - public blic & private vate insurers rers

Sour urce: e: IRDAI AI

5% 5% 9% 9% 9% 9% 10% 10% 4% 4% 33% 33% 37% 37% 41% 41% 42% 42% 96% 96% 62% 62% 54% 54% 50% 50% 48% 48% FY2002 FY2007 FY2010 FY2016 9M 9M-2017

PSUs Privat ate Monoline

Market size ` billion 114 114 262 262 384 384 964 964 915 915 Insurers 10 10 15 15 21 21 29 29 30 30 PSUs 4 4 4 4 4 Private 6 8 13 13 18 18 18 18 Monoline

3

4 7 8

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In Industry stry snapshot shot

Particulars (` billion) FY2002 FY2007 FY2010 FY2016 H1-2017 Gross Domestic Premium Income(GDPI) 114.00 262.04 383.74 964.02 607.73 Profit/(Loss) after tax (0.92) 35.53 12.07 32.48 12.99 Return on Equity

24%

24% 5% 5% 7% 7% 5%* Networth 67.22 163.73 236.84 459.23 492.55 Combined ratio 185.0% 110.7% 119.7% 117.4% 116.0% Expense ratio 91.7% 30.6% 32.4% 32.3% 28.8% Investment book 237.62 595.22 849.65 1,862.83 2,055.92

* Annu nualized alized Retu turn rn on Equity ity

SLIDE 8

8 Sour

urce: e: Sigma 2015 Swiss ss Re

Low penetra netration tion in India ia offer ers s opp pportuni rtunity ty for

r growth

wth

Stro rong ng fundam ament entals als for In India a non-life life insuran urance ce sector tor

0.72% 72% 1.63% 63% 1.19% 19% 1.80% 80% 1.68% 68% 1.79% 79% 1.45% 45% 2.55% 55% 1.69% 69% 2.16% 16% 2.44% 44% 4.22% 22%

10,000

00 20,000 00 30,000 00 40,000 00 50,000 00 60,000 00 0.00% 00% 0.50% 50% 1.00% 00% 1.50% 50% 2.00% 00% 2.50% 50% 3.00% 00% 3.50% 50% 4.00% 00% 4.50% 50%

176 176 15 15 15 15 32 32 5 7 106 106 4 12 12 27 27 106 106 764 764

Marke ket t size US($) $) bn bn

Insurance density : Premium per capita US $ in 2015 0-100 100-200 500-1000 > 1000

GDP per Capita ta US($) Penet netration ration % o

f GDP

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Indust ustry ry overvie view

Ag Agenda da

Comp mpany ny overview view and str trateg tegy y ICI CICI CI Lom

mba

bard d pe perfor

rma

mance nce

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IC ICIC ICI I Lomb mbard ard building lding blocks

cks

 Build

d base through gh corporat

rate book (tariff

ffs) s)

 Set up a s

service & I IT platform rm

 Growt

wth h through gh direct channe nels ls

 Initiate

ate retail foray through gh banca cassur urance nce route

 Strong

ng in-hous use teams based service archite hitect ctur ure

 Investments

ts in technology

gy;

; Robust service platform rm

 Focus on “Strengthening of Core”

 Risk management,

ment, Customer mer centricity ity, Claims ms mana nagement, ment, Cost management, ment, Channel nel management nt

 Strengt

gthe heni ning ng actuari rial al capab abil iliti ties

 Market expansio

ion n through h analytics ics, , new product ucts s

 Focus

us on service excellence nce, customer r engage gement nt , d de-commodi diti tizat zation ion of products cts

Build ld a strong ng platfo form rm Prepar are for growth wth ahead 2002 02-200 007 2008 08-201 010 Preserving rving capita tal l in turbule ulent nt phase 2011 11

nwards

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11

Business iness performanc formance

 Upto

to FY2007 – High h grow

wth

th during ring tariff iff phase ase

 FY2008

008 to FY2010 – Conso solid lidati ation n phase se post st de de-tarif tariffi fing ng

 FY2011

011 onward ards s – Growth wth in line e with the indus dustr try y thro rough ugh focus us

n risk

k selection ction and d custome

mer

r service vice

Premium mium growth th

 No.

. 1 Private vate secto tor insurer urer since ce FY2004

18.0% 13.6% 16.6% 156.4% 3.1% 16.2% FY2002 to FY2007 FY2008 to FY2010 FY2011 to FY2016 Industry CAGR ICICI Lombard CAGR

SLIDE 12

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100% 50% 50% 51% 51% 30% 30% 0% 0% 50% 50% 49% 49% 70% 70% FY2002 FY2007 FY2010 FY2016 Whole lesale le Retail il

Business iness mix

 Polic

licy y issuance ance grow

wn

n from m 3.14 millio lion n in FY2007 to 15.80 milli llion n in FY2016

` billio ion

GWP GWP 0.27 30.03 34 34.32 83 83.07

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IC ICIC ICI I Lomba mbard rd – Focus cus & Objec ectives tives

Robust t risk manage gemen ent Mu Multi i ch channel distribu ribution ion Te Tech chnolo

logy

y as enabler er Customer er ce centric ricity ity

Superio rior r investm stment nt performa mance nce & Capital tal ma managem ement ent

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14

Robust bust risk k management agement

Reservi serving ng Prici cing ng

 Use of analytics

cs aiding ng in risk sk selectio ection & segment gmentat ation

 Pr

Property perty- Pr Prefer ferred & Non prefe ferre rred portfoli

lio

 Motor – Model,

, Location

n,

, Agent, Manufacturer cturer

 NOVA-Innov

vation

n & Accel elerat erator

r Progr

gram am Quality lity Reinsurer nsurer

 Sprea

ead of risk sk across ss panel l of qualit ity re-insur insurers

 Conse

servativ vative e level vel of catastrophe

phe (CAT)

) protectio ection Fraud Control

l

 Dedicat

dicated fraud control

l unit

 Use of claims

ms triagi aging ng & fraud d analyti ytics cs

 Robust rese

serving ving through ugh actuar arial al methods

ds

 IBNR rese

serves ves assess ssment ent undertak aken quarterly

 Asse

sess ssme ment of signifi nifican cant major

r lines

es and sub-lines nes

 Headed

ded by a y an Appointed ted Actuar ary

 First

st insurer in India to disclose

se rese

serving ving triangl angles s in Annual report

rt

29 29

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Multi lti-chan channel nel distribution tribution

Agents Broker kers 19,800 00 + agents nts/brokers /brokers Dir irect ct sales es force ce Corpo porat ate e :

1,000 00+ active customers

Governme ernment :

Health, h, PA, Crop

Banks/F ks/FIs 30+ banks/FIs /FIs 2100+ active touch points Website site Call centre Bran anches ches 8,00, 0,000+ 00+ unique e visi sitors

rs/m

/month nth 2,00, 0,000 00 calls/mon s/month 249 branches hes pan India 140+ virtual ual offices ces

Product contribution 9M-2017

Property 9% 9% Marine 3% 3% Motor 42% 42% Healt lth & PA 21% Crop 20% 20% Other 5%

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Customer tomer centri tricit city

Claim aims manageme nagement nt

 Philosop

ilosophy: y: Gain customer

mer trust

t through rough speed ed and nd qual ality ity of servic vice e deliv liver ery y

 Mix of in-house

se claims s manage geme ment team m and ren enowne ned claims s practitione ners



100+ + doctors rs, 4200+ hospital als, s, 500+ surveyors

 In

In-house se service rvice call l centr tre

 Increa

eased sed focus on risk k mitigat ation

n for clien

ents

Custom tomer r engageme gagement nt

 Initi

itiatives atives to connect nect with customer

mers

s and obta tain in insig ight hts s on product

duct and servic

vice e ideas eas

 #

# DoTheD eDifficu fficult; Measure ure wellnes ness s & health throu

ugh

gh wellnes ness s points s with commu munit nity y building ding throu

ugh

gh social al media

 Wel

elcome

me call – Home,

, Health & sampled motor custome mers

 Net promoter score

e NPS ~ 9000 customers

mers

contacted acted per month to measur sure e advo vocacy

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Technology hnology as enabler bler

Customer tomer Service vice & Acces ess

 Self

lf sufficie icient nt and easy y to access s solution ution

 Policy

cy purchas ase e and servi vicing cing

 Self

f inspecti ection

n,

, mobile wallet payment ent

 Value

ue added servi vices ces like e emer ergency cy assista stanc nce, , garage age locator

r, Fuel shop

 iPar

artne tner, , mobile bile Interme ermediary iary app, p, reva vamp mped ed websi bsite, te, mobi bile le app, p, tabl blet et based sed claim im survey vey etc

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29% 29% 90% 90% FY2010 FY2016

Out of office policy y issuance

3.2 10.3 FY2010 FY2016

Headcount productiv ivit ity

Technology hnology as enabler bler

Lean Oper erat ations ns

 Ado

doptin ting g techno nology logy tool

ls to driv

ive e oper perationa tional l effic ficie iency ncy and cost lead ader ership ship

 Out of office

ce policy cy issuan ance ce @ 90%

 Automat

mated paym ymen ents ts @ 97%

 Headc

dcount nt producti ctivit vity y impro prove veme ment at a 6 year CAGR R of 21 % to ` 10.3 million

` million

n

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19

Capital l manage gement

 Issued

d subordin inated ted debt of ` 4.85 billio lion n @8.25%

 Instrument rated highest rating of ‘AAA’ by CRISIL & ICRA

In Investment stment performance formance & capit pital al manag nagement ement

0% 0% 500% 500% 1000% 0% 1500% 0% 2000% 0% 2500% 0% 3000% 0% 3500% 0%

Mar-03 03 Mar-04 04 Mar-05 05 Mar-06 06 Mar-07 07 Mar-08 08 Mar-09 09 Mar-10 10 Mar-11 11 Mar-12 12 Mar-13 13 Mar-14 14 Mar-15 15 Mar-16 16

Cumu Portfolio lio Returns ns Cumu Nifty Returns ns

Rs 100 invest sted d in Nifty in 2003 3 would d be ` 709 now Rs 100 100 invest sted d in ICICI Lombar ard d Equity potfol

lio in 2003

2003 would d be `3,259 59 now

 Long

g track record d of outperf rformin

rming

g benchmark rk composite te

 Annuali

nualized zed total al return urn over er the last t 14 years: rs: 11.57% compa mpare red to 9.75% genera erate ted by benc nchma hmark rk

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IC ICIC ICI I Lomb mbard ard stren ength gth

Innovation Techno nolo logy gy Human an capital al

 One

e of the two gener neral al insurers s to launch long term m compre prehen hensiv sive e two wheel eler insuran ance ce in Q1-2016 16

 FY 2016 : `1.33 billion,

n, No of policie ies :5,15,3 ,353

 Faster claim processing through ‘Virtual Survey’

networ

rk

 1st

st company

y to introdu duce ce Motor claim m survey veyor

r app &

Fire risk k inspecti ection

n app

 25% employe

yees es with 5+years ars ICICI Lombard d exper perience ce

 ATD

TD Best t award rd for 4 ye years rs (7th

th in 2016)

Speed ed

 Lea

eading ding set ettler* of

f Mo

Motor

r OD

OD, Hea ealth cl clai aims ms in in the he Industry

 Motor OD

OD : 92 92% of

f claims settled in

in 30 30 days

 Health : 99

99% of

f claims settled in

in 30 30 days

* Public ic disclos losure ure on company ny websites ites

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21

Aw Awards rds & rec ecognit

gnition

ion

‘Claim Service Leader’ (General Insurance – Large ge catego egory) y) - The Indian ian Insurance urance Awards, rds, 2016 2016

‘Technology Innovation’ Awards - The India

ian n Insuranc urance e Awar ards, s, 2016 “Process Excellence” Award at the World Quality Congre

ngress,

s, Global

bal Award

rds s , 2016 ”Most Innovative Health Insurance Company of the Year”

Fros
st

t & Sullivan livan Indi dia Best Practices ctices Award rd, , 2016

SLIDE 22

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Agenda da

ICICI I Lomb mbard performa mance nce

SLIDE 23

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Financ nancial ial high ghlig lights hts : FY2 Y2016 16

GWP growth wth of 20 20.2%; ; FY2016 6 : : ` 83 83.07 07 billi llion No. . of polici icies es issued ued increa reased sed by 14%; FY201 016:1 6:15. 5.8 8 million lion Profit

fit befor
re

e tax : ` 7.08 billion lion Return urn on equity ity : 17% Investment vestment book

k : `115.63

63 billi llion

n

Solven lvency cy ratio io as at March ch 31, 2016: 1.82x (minimum (minimum requi quire remen ment: t: 1.50x)

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24

Bench nchmarking marking: : FY Y 2016

Oper erat ating ng perfo forman ance ce Financ ncial al stren rength gth Customer

mer

ser ervice vice Particulars (` billion) Industry ICICI Lombard Growth in GDPI 14% 14% 21% 21% Profit/(Loss) after tax 32.48 5.07 Combined ratio 117.4% 106.2% Expense ratio 32.3% 24.7% Return on Equity 7% 7% 17% 17% Networth 459.23 31.76 Solvency ratio 1.99x 1.82x Investment book 1,862.83 115.63 Claims paid < 30 days Motor OD 63% 63% 92% 92% Health 63% 63% 99% 99%

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Financ nancial ial perform formance ance

 Combine

bined ratio io for FY2016 6 impacte cted on account t of Chennai ai floods s and Crop p Insurance ce losse ses

Particulars (` billion) FY2013 FY2014 FY2015 FY2016 Gross written premium 64.20 71.34 69.14 83.07 Profit/(Loss) before tax 2.82 5.20 6.91 7.08 Profit/(Loss) after tax 3.06 5.11 5.36 5.07 Combined ratio 106.5% 105.4% 104.5% 106.2% Return on Equity 18% 18% 24% 24% 21% 21% 16.9% Networth 18.66 23.81 28.24 31.76 Solvency ratio 1.55x 1.72x 1.95x 1.82x Solvency ratio regulatory requirement 1.40x 1.50x 1.50x 1.50x Particulars (` billion) FY2013 FY2014 FY2015 FY2016 Gross written premium 64.20 71.34 69.14 83.07 Profit/(Loss) before tax 2.82 5.20 6.91 7.08 Profit/(Loss) after tax 3.06 5.11 5.36 5.07 Combined ratio 106.5% 105.4% 104.5% 106.2% Return on Equity 18% 18% 24% 24% 21% 21% 17% 17% Networth 18.66 23.81 28.24 31.76 Solvency ratio 1.55x 1.72x 1.95x 1.82x Solvency ratio regulatory requirement 1.40x 1.50x 1.50x 1.50x

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Financ nancial ial perform formance: ance: 9M-201 017

 ICICI Lombard GWP Growth for 9M-2017

17 :33% Particulars (` billion) 9M-2016 9M-2017 Gross written premium 61.92 82.47 Profit/(Loss) before tax 5.41 6.61 Profit/(Loss) after tax 3.88 5.22 Combined ratio 107.2% 105.8% Return on Equity 17% 17% 19% 19% Networth 30.96 35.71 Solvency ratio 1.93x 2.01x Solvency ratio regulatory requirement 1.50x 1.50x

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27

Safe e harbor bor

Exc Excep ept for

r th

the hi histori torica cal inf informa

rmati

tion

n co

contain tained ed her erei ein, st stateme ments ts in in thi this rel eleas ease which ich co contain tain words

rds or
r phrase

phrases such such as as 'w 'wil ill', l', 'w 'would'

uld', ‘indicating’, ‘expected to’

etc tc., and and sim imil ilar ar ex expre pressi sion

ns or
r varia

variati tions

ns of
f such

uch expr expression ssions ma may co consti titu tute te 'f 'forwa

rward

rd-loo looking ng st statemen ents ts'. The These forwa

rward

rd-look looking ing stat tatemen ents invol volve a nu numb mber er

f
f ri

risks, unc uncer ertain tainti ties and and other

ther fac

factor tors that that coul could ca caus use ac actual tual resul ults to to dif iffer er mat ater eriall ially fro from tho hose su sugg gges ested ed by by th the for forwar ard-lo look

king

ing st statem ements

ts. Th

These ri risks and and uncer uncertain tainti ties incl includ ude, e, bu but ar are not

t li

limi mited ed to to our

ur ab

abil ility ty to to succ succes essf sful ully ly imp mplement ent our ur stra trateg egy, our

ur gro

growth th and and expa expans nsion ion in in bus busin ines ess, s, th the impa mpact of

f an

any ac acqui quisi siti tions ns, techno echnologica logical imp mple lemen enta tati tion

n and

and cha chang nges, s, the the ac actual tual gro growth th in in demand mand for for ins insuranc urance produc products and and ser ervi vices, s, in inves estmen ent inco income, e, ca cash flow low pro projections ections, our ur exp exposu

sure to

to mark arket risks, isks, po poli lici cies and and ac acti tion

ns of
f reg

egul ulator atory au authori thoriti ties; impa mpact ct of

f co

comp mpeti titi tion

n; th

the impa mpact of

f cha

chang nges es in in ca capi pital tal , so solvency ency or

r

ac acco count unting ing standa tandard rds , tax tax and and oth ther er legi gisl slat ations ions and and regu egulat lations ions in in th the jur jurisdi sdicti tions

ns

as as wel ell as as oth ther er ri risks det etail iled ed in in the repor eports fil filed by by IC ICIC ICI Bank Bank Lim imited ed, our

ur hold

holding ing co compa mpany, with th th the Uni United ed Sta tate tes Securi ecuriti ties an and Exc Exchang hange Co Comm mmission

ssion. IC

ICIC ICI Ban Bank and and we we und nder ertak take no no obl

bliga

igati tion

n to

to upda update forwa

rward

rd-look

oking

ing st state temen ents to to re refle flect ct events or

r circum

umstance tances after the date thereof.

SLIDE 28

28

Thank k you

SLIDE 29

29

Ad Adequacy equacy of f Outstanding tanding reserving rving

` millio

ion

14 14

Ac Accident nt year wise ultimate te loss developm pmen ent

As at March 31,2016 AY 08-09 AY 09-10 AY 10-11 AY 11-12 AY 12-13 AY 13-14 AY 14-15 AY 15-16 First 12,855 15,128 20,656 22,530 27,974 35,957 34,160 39,131 Second 13,240 15,232 20,435 21,967 27,021 34,628 33,949

Third

13,034 15,390 20,405 21,745 26,517 34,371

Fourth

13,206 15,517 20,361 21,846 26,400

Fifth

13,345 15,546 20,474 21,831

Sixth

13,386 15,656 20,484

Seventh

13,458 15,907

Eighth

13,527

Dev./Initial

Incured 5.2% 5.2%

0.8%
3.1%
5.6%
4.4%
0.6%

0.0%

` milli lion