ICICI Lombard General: Investor Presentation for quarter ended December 31, 2020

9M2021 Performance Review

Agenda

• Company Strategy
• Financial Performance
• Update- Scheme of Arrangement
• ESG Initiatives
• Industry Overview

Agenda

• Company Strategy
• Financial Performance
• Update- Scheme of Arrangement
• ESG Initiatives
• Industry Overview

ICICI General - Pillars of Strength

Consistent Market

Leadership and

growth

• Leading private sector non-life insurer in India since FY2004 (GDPI basis)
• 12 years GDPI CAGR:
  12.3%
• Market share 9M2021 (GDPI basis): 7.2%

Diverse products and multi-channel distribution

• Comprehensive and diverse product portfolio
• Individual Agents* 55,615
• Expanding distribution network to increase penetration in Tier 3 and Tier 4 cities
• • Number of Virtual Offices: 840

Excellence in

Customer service and Technology

• Leveraging on Artificial Intelligence, Machine Learning, IoT etc. throughout the customer life cycle
• Dedicated "digital arm" to improve speed of delivery

Risk

Management

• Profitable growth using risk selection and data analytics
• Maintain robust reserves
• Prudent investment management

Capital

Conservation

• Maintain high level of Solvency against regulatory minimum requirement of 1.50x
• Solvency 2.76x as at December 31, 2020

*including POS

IoT - Internet of Things

4

Key Highlights

Particulars	FY2019	FY2020	9M2020	9M2021
(` billion)	Actual	Actual	Actual	Actual
Gross Written Premium	147.89	135.92	103.61	107.60
Gross Direct Premium Income (GDPI)	144.88	133.13	101.32	105.25
GDPI Growth	17.2%	-8.1%	-7.9%	3.9%
GDPI Growth (excluding crop)	20.5%	10.5%	13.2%	4.3%
Combined Ratio*	98.8%	100.4%	100.5%	99.1%
Profit after Tax	10.49	11.94	9.12	11.27
Return on Average Equity	21.3%	20.8%	21.8%	22.4%
Solvency Ratio	2.24x	2.17x	2.18x	2.76x
Book Value per Share	117.11	134.97	128.76	159.86
Basic Earnings per Share	23.11	26.27	20.07	24.81

• Basis IRDAI circular dated May 20, 2019, the ratio has been revised from 98.5% in FY2019

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Comprehensive Product Portfolio

		Product Mix
8%	8%	0%	9%	0%
	4%	4%
17%
12%	12%
3%
7%	25%	25%
20%
21%	23%	23%
24%	28%	27%

9%	Others
3% 0%
17%	Crop
22%	Marine
	Fire
23%	Health, Travel & PA
	Motor TP
26%	Motor OD

FY2019

FY2020

9M2020

9M2021

• Diversified product mix- motor, health, travel & personal accident, fire, marine and others
• SME business growth was 36.6% for 9M2021 (36.0% for Q32021)

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Comprehensive Product Portfolio - Motor

														` billion
Motor GDPI Mix
										77.9%
				73.8%		76.5%				63.6%
Type	9M2020	9M2021
		22.4%	5.7%	9.5%		2.1%
Private car	55.9%	57.4%
Two Wheeler	29.6%	27.3%
	Motor
Commercial Vehicle	14.5%	15.3%		34.08	30.16	36.89	30.99	27.33 23.08	27.34 24.13

• Loss cost driven micro-segmentation resulting in focus on relatively profitable segment
• Advance premium at December 31, 2020 : ` 31.97 billion (` 31.60 billion at September 30, 2020)

FY2019	FY2020	9M2020	9M2021
Loss Ratio	Growth			OD GDPI		TP GDPI

• Withdrawal of Long Term Motor Package Policy by IRDAI: Effective August 1, 2020, option to avail long term Own Damage cover has been discontinued
• Motor Vehicle Act : Proposed reduction in time limit of claim intimation to 6 months
• • Expecting shortening of claims settlement cycle, selective increase in fines for traffic violations
• Standalone OD Policy: Effective September 1, 2019 Standalone OD policies are now being issued for Private car & Two-Wheeler

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Comprehensive Product Portfolio - Health, Travel & PA

` billion

Health, Travel & PA GDPI Mix

Type	9M2020	9M2021
Individual	22.5%	24.9%
Group - Others	40.0%	23.2%
Group Employer-Employee	37.4%	51.9%
Mass	0.1%	0.0%

Health, Travel & PA

73.5%	69.9%	69.6%	77.3%
19.9%	12.2%	23.7%	-8.9%

29.69	33.32
25.08	22.84

FY2019	FY2020	9M2020	9M2021
Loss Ratio	Growth			Health, Travel & PA GDPI

• Individual health indemnity business grew by 25.7% for 9M2021 ( 17.0% for Q32021)
• Reduction in sourcing from Corporate Agent - Banks and Others led to lower growth in Group - Others business for 9M2021
• IL Take Care for customer engagement & servicing of health, motor and travel customers
• • More than 344 K+ downloads till 9M2021 ( 300 K+ downloads in 9M2021)
  • Launched Complete health insurance product, for wider coverage and price revision launched in November 2020 for new customers and from January 2021 onwards for renewals

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Comprehensive Product Portfolio

• Market share in commercial lines

Property & Casualty (P&C) Market Share

Product	9M2020	9M2021
Fire	10.0%	11.0%
Engineering	12.4%	13.6%
Marine Cargo	15.3%	16.3%
Liability	16.1%	16.0%

• Increase in reinsurance rates for other sectors (rates for 8 sectors increased w.e.f. March 2019) under fire segment w.e.f. January 1, 2020

• P&C

																			` billion
	Casualty*&			67.3%			57.4%				57.8%				66.4%
		16.9%		20.4%				11.4%		22.0%
	Property		26.44		31.83				25.08		30.61
						FY2019			FY2020	9M2020			9M2021
					Loss Ratio			Growth			Property & Casualty GDPI

• Higher retention on account of increase in rates
• Net impact of cyclone and flood losses of ₹ 1.09 billion for 9M2021 ( ₹ 0.61 billion for 9M2020)
• • Net impact of cyclone and flood losses of ₹ 0.32 billion for Q32021 ( NIL for Q32020)

Source: GI Council & Company data

*excludes Travel basis IRDAI circular dated May 20, 2019

9

Digital Opportunities

Policy Issuance

15.7 Mn Policies sourced

97.5% issued electronically

(96.5% in FY2020)

Next Gen Solutions

Cloud deployment

Big Data & Customer experience management

Service Excellence

Claims & Servicing

1.1 Mn Claims honored

41.0% in December 2020, Motor OD claims through InstaSpect (24.5% in March 2020)

Automation and Scale

AI and ML Solutions

63.1% cashless authorization through AI for GHI in December 2020 (31.0% in March 2020)

66.0% STP of motor break- in from Self Inspection app through AI in December 2020 (40.6% in March 2020)

Headcount Productivity

15.3% 12 year CAGR

Work from Home

Enabled for all our headcount

Enhanced Data & End point Security

10

Risk Management

Underwriting

• 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

28

Investments

• Tighter internal exposure norms as against regulatory limits
• Invest high proportion of Debt portfolio 84.9% in sovereign or AAA rated securities*
• • All Debt securities are rated AA & above
• Zero instance of default in Debt portfolio since inception
• • domestic credit rating

Reinsurance

• Spread of risk across panel of quality re-insurers
• Conservative level of catastrophe (CAT) protection

Reserving

• IBNR utilization improving trend indicates robustness of reserves
• Disclosing reserving triangles in Annual report since FY2016

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11

Agenda

• Company Strategy
• Financial Performance
• Update- Scheme of Arrangement
• ESG Initiatives
• Update- COVID-19
• Industry Overview

Financial performance

• billion

Combined ratio* (%)		Return on average Equity (ROAE) (%)

	100.4%			100.5%	99.1%
98.8%		98.7%	97.9%
FY2019	FY2020	Q32020	Q32021	9MFY2020	9MFY2021

21.3%	20.8%	20.3%		21.8%	22.4%
17.6%
FY2019	FY2020	Q32020	Q32021	9MFY2020	9MFY2021

	Profit before Tax (PBT)	Growth

6.2%				13.4%
15.98	16.97				15.04
				13.26
			7.3%
		3.90	4.18
FY2019	FY2020	Q32020	Q32021	9MFY2020	9MFY2021

Profit after Tax (PAT)	Growth

13.8%		6.6%		23.6%
10.49	11.94				11.27
			9.12
		2.94	3.14
FY2019	FY2020	Q32020	Q32021	9MFY2020	9MFY2021

• Excluding the impact of cyclone and flood losses Combined ratio for Q32021 & 9M2021 was 96.6% & 97.7% respectively, whereas for Q32020 & 9M2020 was 98.7% & 99.5% respectively
• Effective tax rate for 9M2021 & 9M2020 was 25.0% & 31.2% respectively.

*Basis IRDAI circular dated May 20, 2019 Combined Ratio has been revised from 98.5% in FY2019

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Robust Investment Performance

• billion

Realised Return (%)

9.4%
	7.9%
					6.3%1	5.9%1
		1.8%	1	2.0%1
FY2019	FY2020	Q32020	Q32021	9M2020	9M2021

Investment Book	Investment Leverage2

4.09x	4.21x	4.09x	4.13x	4.16x	4.05x
	263.27		291.62		298.92
	239.99		248.45
222.31
FY2019	FY2020	H12020	H12021	9MFY2020	9MFY2021

• Investment portfolio mix3 for 9M2021 : Corporate bonds 43.4%, G-Sec 38.4% and equity 10.9%
• Strong investment leverage
• Unrealised gain of ` 19.06 billion as on December 31, 2020
• • Unrealised gain on equity4 portfolio at ` 6.07 billion
  • Unrealised gain on other than equity4 portfolio at ` 12.99 billion

1 Absolute Returns

2 Total investment assets (net of borrowings) / net worth 3 Investment portfolio mix at cost

4 Equity includes mutual funds

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Agenda

• Company Strategy
• Financial Performance
• Update- Scheme of Arrangement
• ESG Initiatives
• Industry Overview

Update- Scheme of Arrangement

Regulatory Filings & Approvals

CCI approved the combination under sub section (1) section 31 of Competition Act 2002 on November 2, 2020

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

Received in-principle approval from IRDAI on November 27, 2020

Application filed before NCLT (Mumbai), for seeking directions for convening meeting of Equity shareholders and dispensation of creditors meeting with respect to Scheme of Arrangement, on December 3, 2020

NCLT (Mumbai) vide its order dated December 18, 2020 directed the Company, inter alia, to convene the meeting of its Equity Shareholders, to consider and approve the Scheme of arrangement and dispensed with the creditors meeting

16

For more information Go To : https://www.icicilombard.com/investor-relationsBulletin Board > Scheme of Arrangement

Agenda

• Company Strategy
• Financial Performance
• Update - Scheme of Arrangement
• ESG Initiatives
• Industry Overview

Safeguarding environment

An overarching Policy on Environment Management

Becoming	Reduce, Reuse,	Saving on
energy efficient	and Recycle	water
• Adapting methods to	• Incorporating processes	• Engaging in rainwater
conserve energy and	that promote reduction in	harvesting and
groundwater recharging
prevent emissions from	use of paper
time to time		• Implementing drip
	• Reusable glasses and
	irrigation for gardens
• Installing energy efficient	plates
products to reduce	• Promoting recycling	• Installing sensor based
energy consumption	water dispensers

Protecting the

environment

• Switching to bio-degradable alternatives
• Ecofriendly mode to procure water
• Taking green measures for communication
• Reducing carbon footprint by integrating digital tools for sourcing and servicing of customers

The measures indicated above are adopted in our key offices. We aim to cover more locations in the near future.

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Contributing the Social Way

Addressing

customer needs

• Providing best-in-class experience
• AI-basedsolutions and digital claim forms for instant renewals/claims
• Usage of cognitive computing to fasten claim processing and reducing overall response time
• Providing end to end digital solutions

Creating value for

employees

• Hiring from diverse skill sets
• Building capabilities in knowledge, skills and competencies
• Building an inclusive culture and an enabling environment to perform and grow
• Driving a performance culture through differentiation and linkage to rewards

Enabling community

awareness and

development

• Aiming at community well-being with healthcare, road safety and wellness programs
• "Caring Hands" providing spectacles for children with poor vision
• "Ride to Safety" raising awareness for road safety
• "Niranjali" to educate children on safe drinking water

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Strong Governance

Robust Structure

• Optimum mix of Executive/Non- Executive Directors as per Policy on Board Diversity
• Performance evaluation of Board, Committees, Chairperson, Individual Directors
• Succession plan in place for senior management positions
• ERM framework for managing key risks

Code of conduct

• Conducting business with highest standards of compliance and ethics
• Zero tolerance approach towards Fraud
• Policies like Prohibition of Insider Trading, Anti-Money Laundering
• Encouraging to report concerns through Whistle Blower Policy

Data privacy

• Detecting, preventing, mitigating cyber security issues
• Enforcing leading practices and controls through Cyber security Policy
• Focused approach to cyber security with the triad of Confidentiality, Integrity and Availability (CIA) at the core of the information security framework
• Training employees and distributors in effective data handling

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Agenda

• Company Strategy
• Financial Performance
• Update- Scheme of Arrangement
• ESG Initiatives
• Industry Overview

India Non - life Insurance Market - Large Addressable Market

Massive growth opportunity in non-life premiums	Significantly underpenetrated
			Premium as a % of GDP (CY19)	(US$)
			8.51
			4.95
			2.67	2.31	2.31	2.01	1.78
				0.97	0.94	0.58
India: US$	EAPAC*: US$	World: US$
26.64 billion	342.02 billion	3376.33 billion

Non-Life Insurance Density

 4th largest non-life insurance market in Asia and 15th	5580		(Premium per capita) (CY19)
			(US$)
largest globally
 Non-life Insurance penetration in India was around 1/4th of		1544	978	930
Global Average in 2019
			201 160 155 113 24	19
 Operates under a "cash before cover" model

*EAPAC - Emerging Asia Pacific Market

Source: Sigma 4/2020 Swiss Re

22

Industry has witnessed steady growth

` billion

Industry CAGR

IL CAGR

Market Share of Private Players**

17.2%

14.4%

16.6%

73.3%* 36.6%

0.1%294.98

100.87

11.7%#
(8.1%)	^#
55.8%
			1,893.02
54.7%
1,694.48

2.5%#

3.9%#

50.0%49.6%

1,420.851,456.79

FY2001FY2008FY2019

Tariff era

12 years CAGR : Industry - 16.8%; IL - 12.3%

Source: IRDAI and GI Council

FY20209M20209M2021

Non-Tariff era		Industry GDPI

*IL CAGR FY2003 - FY2008
**Excluding Standalone Health Insurers
^ Due to cautious approach on underwriting crop segment	23
#Growth

Thank you

Annexure

Loss Ratio

Particulars	FY2019	FY2020	Q32020	Q32021	9M2020	9M2021
Motor OD	59.2%	68.9%	68.8%	63.2%	69.6%	61.7%
Motor TP	90.8%	84.4%	81.8%	65.5%	86.3%	65.7%
Health,Travel & PA	73.5%	69.9%	69.6%	74.6%	69.6%	77.3%
Crop	106.5%	110.6%	110.4%	112.5%	111.3%	111.2%
Fire	83.2%	64.0%	50.1%	56.5%	67.8%	73.9%
Marine	84.0%	65.3%	68.2%	79.7%	64.3%	79.9%
Engineering	37.1%	40.7%	34.5%	37.6%	38.4%	65.6%
Other	55.2%	51.8%	55.6%	43.4%	52.1%	49.4%
Total	75.3%	72.9%	71.7%	65.9%	73.8%	67.5%

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Abbreviations:

AI - Artificial Intelligence AY - Accident Year

CAGR - Compounded Annual Growth Rate CCI - Competition Commission of India

CY - Calendar Year

EAPAC - Emerging Asia Pacific Markets FY - Financial Year

G-Sec - Government Securities GDP - Gross Direct Product

GDPI - Gross Direct Premium Income GHI - Group Health Insurance

GIC - The General Insurance Corporation of India GI Council - General Insurance Council

GWP - Gross Written Premium IBNR - Incurred But Not Reported

IL / ICICI General / Company - ICICI Lombard

IMTPIP - Indian Third Party Insurance Pool IoT - Internet of Things

IRDAI - Insurance Regulatory and Development Authority of India ML- Machine Learning

NCLT- National Company Law Tribunal NEP - Net Earned Premium

NWP - Net Written Premium OD - Own Damage

PA - Personal Accident PAT - Profit After Tax PBT - Profit Before Tax P&C - Property & Casualty POS - Point of Sales

ROAE - Return on Average Equity

SEBI - Securities Exchange Board of India SOP-Standard Operating Procedures STP - Straight through processing

• - Indian Rupees TP - Third Party
  US$ - United State's dollar
  VO - Virtual Office

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Impact of catastrophic events : Historical snapshot

				₹ billion
Catastrophic Event	Year	Economic	Insured	Our Share of
Losses	losses*	Insured losses
Cyclone Amphan*	2020	1,000.00	15.00	4.8%
Maharashtra, Gujarat,
Karnataka, Kerala & other	2019	709.70**	20.00	3.4%
states Floods
Cyclone Fani	2019	120.00	12.25	2.5%
Kerala floods	2018	300.00	25.00	2.7%
Chennai floods	2015	150.00	49.40	7.5%
Cyclone Hudhud	2014	715.00	41.60	2.2%
J&K floods	2014	388.05	15.60	2.6%
North-east floods	2014	393.30	15.60	***

* estimates based on market sources

**Aon Global Catastrophe Report11

***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

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Reserving Triangle Disclosure - Total1

	Incurred Losses and Allocated Expenses (Ultimate Movement)							` billion
	As at March 31, 2020	Prior	AY 11	AY 12	AY 13	AY 14	AY 15	AY 16	AY 17	AY 18	AY 19	AY 20
	End of First Year	54.99	20.66	22.53	27.97	35.96	34.16	39.13	49.49	52.41	65.27	72.72
	One year later	55.11	20.44	21.97	27.02	34.63	33.95	38.58	49.20	51.10	64.10
	Two years later	55.88	20.41	21.74	26.52	34.37	33.53	38.07	48.84	50.08
	Three years later	56.70	20.36	21.85	26.40	34.29	32.91	37.78	48.57
	Four years later	56.85	20.47	21.83	26.46	33.85	32.73	37.25
	Five years later	57.53	20.48	21.81	26.21	33.73	32.16
	Six years later	58.02	20.53	21.83	26.18	33.32
	Seven Years later	58.20	20.67	21.83	26.17
	Eight Years later	58.40	20.67	21.75
	Nine Years later	58.48	20.61
	Ten Years later	58.37
	Deficiency/ (Redundancy) (%)	6.2%	-0.2%	-3.5%	-6.5%	-7.3%	-5.9%	-4.8%	-1.9%	-4.4%	-1.8%	0.0%
	Unpaid Losses and Loss Adjusted Expenses
	As at March 31, 2020	Prior	AY 11	AY 12	AY 13	AY 14	AY 15	AY 16	AY 17	AY 18	AY 19	AY 20
	End of First Year	9.16	7.18	7.98	12.01	17.32	17.10	20.44	26.84	32.58	37.37	37.98
	One year later	4.50	2.67	3.33	6.11	9.70	11.58	14.06	16.86	18.03	27.01
	Two years later	3.74	2.00	2.46	4.72	7.92	9.61	11.46	13.04	15.00
	Three years later	3.59	1.58	2.12	3.84	6.73	7.80	9.69	10.67
	Four years later	3.02	1.39	1.76	3.39	5.58	6.77	7.93
	Five years later	3.12	1.13	1.47	2.77	4.82	5.49
	Six years later	2.91	1.00	1.28	2.42	3.94
	Seven Years later	2.65	0.97	1.08	2.12
	Eight Years later	2.43	0.84	0.87
	Nine Years later	2.16	0.68
	Ten Years later	1.75

1As at March 31, 2020; Losses and expenses in the above tables do not include the erstwhile Indian Motor Third Party Insurance
Pool (IMTPIP)	29
AY: Accident Year

Reserving Triangle Disclosure - IMTPIP

Incurred Losses and Allocated Expenses (Ultimate Movement)

• billion

As at March 31, 2020	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		6.16	5.81	4.63	4.12	2.74
Five years later	2.61	6.16	5.85	4.67	4.41	3.16
Six years later	2.61	6.46	5.96	4.99	5.12	3.17
Seven Years later	2.86	6.55	6.05	5.45	5.12	3.17
Eight Years later	2.95	6.69	6.55	5.45	5.12
Nine Years later	3.00	6.98	6.55	5.45
Ten Years later	3.09	6.98	6.55
Eleven Years later	3.09	6.98
Twelve Years later	3.09
Deficiency/ (Redundancy) (%)	18.4%	13.2%	12.9%	21.3%	32.8%	16.8%
Unpaid Losses and Loss Adjusted Expenses
As at March 31, 2020	AY 08	AY 09	AY 10	AY 11	AY 12	AY 13
End of First Year						2.67
One year later					3.41	2.30
Two years later				3.14	2.57	1.87
Three years later			3.17	2.38	1.98	1.37
Four years later		2.67	2.51	1.84	1.51	0.98
Five years later	0.86	2.05	2.03	1.32	1.22	1.13
Six years later	0.63	1.89	1.56	1.19	1.63	0.91
Seven Years later	0.72	1.50	1.26	1.31	1.29	0.71
Eight Years later	0.65	1.23	1.39	1.03	1.02
Nine Years later	0.55	1.19	1.07	0.78
Ten Years later	0.52	0.89	0.78
Eleven Years later	0.43	0.63							11
Twelve Years later	0.32

As at March 31, 2020 - IMTPIP: Indian Motor Third Party Insurance Pool AY: Accident Year

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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 holding 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.