Ref No.: MUM/SEC/15-04/2022 April 17, 2021 To, To, General Manager Vice President Listing Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Tower, Exchange Plaza, 5th Floor, Plot C/1, Dalal Street, Fort G Block, Bandra-Kurla Complex Mumbai – 400001 Bandra (East), Mumbai – 400051 Scrip code: Equity (BSE: 540716/ NSE: ICICIGI); Debt (BSE: 954492/ NSE: ILGl26) Dear Madam/Sir, Disclosure under Regulation 30 read with Schedule Ill and Regulation 46(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 Sub: Ref: Investor Presentation- Audited Financial Results for the quarter and financial year ended March 31, 2021 In compliance with above mentioned Regulation, please find enclosed the Investors Presentation on the Audited Financial Results for the quarter and financial year ended March 31, 2021. The above information is being made available on the Company's website www.icicilombard.com You are requested to kindly take the same on records. Yours Sincerely, ICICI Lombard General Insurance Company Limited Vikas Mehra Company Secretary 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, Alternate No.: +91 8655222666 (Chargeable) Near Siddhi Vinayak Temple, Prabhadevi, Email: [email protected] New Linking Road, Malad (West), Mumbai - 400 025 Website: www.icicilombard.com Mumbai - 400 064 FY2021 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 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 • Profitable growth • Maintain high level non-life insurer in India diverse product Intelligence, Machine using risk selection of Solvency against since FY2004 (GDPI portfolio Learning, IoT etc. and data analytics regulatory minimum basis) throughout the requirement of 1.50x • Individual Agents* customer life cycle • Maintain robust • 13 years GDPI CAGR: 59,545 • Solvency 2.90x as 11.7% reserves • Expanding distribution • Dedicated “digital arm” at March 31, 2021 network to increase to improve speed of • Market share FY2021 • Prudent investment penetration in Tier 3 delivery (GDPI basis): 7.0% management and Tier 4 cities • Number of Virtual Offices: 840 *including POS IoT – Internet of Things 4 Key Highlights Particulars FY2019 FY2020 FY2021 (` billion) Actual Actual Actual Gross Written Premium 147.89 135.92 143.20 Gross Direct Premium Income (GDPI) 144.88 133.13 140.03 GDPI Growth 17.2% -8.1% 5.2% Combined Ratio* 98.8% 100.4% 99.8% Profit after Tax 10.49 11.94 14.73 Return on Average Equity 21.3% 20.8% 21.7% Solvency Ratio 2.24x 2.17x 2.90x Book Value per Share 117.11 134.97 163.56 Basic Earnings per Share 23.11 26.27 32.41 * Basis IRDAI circular dated May 20, 2019, the ratio has been revised from 98.5% in FY2019 5 Comprehensive Product Portfolio Product Mix 0% 8% 8% 9% 4% 0% 3% 0% Others 17% 0% 12% 16% Crop 3% 7% 25% 22% Marine 20% Fire 23% 24% Health, Travel & PA 21% Motor TP 28% 24% 26% Motor OD FY2019 FY2020 FY2021 Diversified product mix– motor, health, travel & personal accident, fire, marine and others SME business growth was 34.5% for FY2021 (29.1% for FY2020) 6 Comprehensive Product Portfolio - Motor ` billion Motor GDPI Mix Type FY2020 FY2021 73.8% 76.5% 65.8% Private car 56.7% 56.3% 22.4% 5.7% 3.4% Two Wheeler 28.5% 27.3% Commercial Vehicle 14.8% 16.4% 36.89 36.85 34.08 30.16 30.99 33.35 Loss cost driven micro-segmentation resulting in Motor focus on relatively profitable segment FY2019 FY2020 FY2021 Advance premium at March 31, 2021 : ` 32.06 billion (` 31.97 billion at December 31, 2020) 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 while Motor TP continues in line with Supreme Court Judgment 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 Reserves further strengthened to factor in higher compensation awarded by courts in settlement of Motor TP claims in line with the recent judgment 7 Comprehensive Product Portfolio – Health, Travel & PA ` billion 73.5% 69.9% 78.0% Health, Travel & PA GDPI Mix 19.9% 12.2% -9.3% Type FY2020 FY2021 Individual 23.6% 26.7% 33.32 Group – Others 38.8% 23.3% 29.69 30.21 Group Employer-Employee 37.5% 50.0% PA & Travel Health, FY2019 FY2020 FY2021 Mass 0.1% 0.0% Loss Ratio Growth Health, Travel & PA GDPI Individual health indemnity business grew by 22.0% for FY2021 ( 16.6% for FY2020) Reduction in sourcing from Corporate Agent - Banks led to lower growth in Group – Others business for FY2021 IL Take Care for customer engagement & servicing of health, motor and travel customers More than 500K+ downloads till FY2021 ( 450K+ downloads in FY2021) 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 8 Comprehensive Product Portfolio – P&C ` billion Accretion in Market share across all commercial lines Property & Casualty (P&C) Market Share 67.3% 57.4% 63.2% Product 11M2020 11M2021 16.9% 20.4% 23.5% Fire 10.3% 11.2% Engineering 12.4% 13.9% & Casualty* & 39.29 31.83 Marine Cargo 15.3% 16.6% 26.44 Liability 15.8% 16.3% Property FY2019 FY2020 FY2021 Higher net retention on account of increase in rates Loss Ratio Growth Property & Casualty GDPI Net impact of cyclone and flood losses of ₹ 1.00 billion for FY2021 ( ₹ 0.61 billion for FY2020) Source: IRDAI and GI Council *excludes Travel basis IRDAI circular dated May 20, 2019 9 Digital Opportunities Service Excellence Policy Issuance Claims & Servicing Headcount Productivity Claims honored 21.7 Mn Policies sourced 1.6 Mn 14.8% 13 year CAGR 60.8% Motor OD claims 97.0% issued electronically through InstaSpect in March (96.5% in FY2020) 2021 (24.5% in March 2020) Automation and Scale Next Gen Solutions AI and ML Solutions Dynamic Workforce 60.1% cashless Remote working policy Cognitive services and BOTs authorization through AI for under Flexi-Able initiatives GHI in March 2021 (31.0% in APIfication and microservices March 2020) Enhanced Data & End point Security 61.6% STP of motor break- in from Self Inspection app through AI in March 2021 (40.6% in March 2020) 10 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 losses from catastrophic events than overall market share 29 Investments Reserving Tighter internal exposure norms as against regulatory IBNR utilization improving trend indicates robustness of limits reserves Invest high proportion of Debt portfolio 86.1% in Disclosing reserving triangles in Annual report since sovereign or AAA rated securities* FY2016 All Debt securities are rated AA & above Zero instance of default in Debt portfolio since inception 30 * domestic credit rating 11 Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview Financial performance ` billion Combined ratio (%) Return on average Equity (ROAE) (%) 20.8% 21.7% 18.8% 18.8% 101.8% 100.4% 99.8% 100.1% FY2020 FY2021 Q42020 Q42021 FY2020 FY2021 Q42020 Q42021 Profit before Tax (PBT) Growth Profit after Tax (PAT) Growth 15.1% 23.4% 14.73 19.54 11.94 16.97 21.4% 22.6% 3.46 3.71 4.50 2.82 FY2020 FY2021 Q42020 Q42021 FY2020 FY2021 Q42020 Q42021 • Effective tax rate for FY2020 & FY2021 was 29.7% & 24.6% respectively. 13 Robust Investment Performance ` billion RealisedRealised Return Return (%) (%) Investment Book Investment Leverage1 4.21x 4.09x 308.92 7.9% 7.8% 263.27 FY2020 FY2021 FY2020FY2020 FY2021FY2021 Investment portfolio mix2 for FY2021 : Corporate bonds 42.7%, G-Sec 38.6% and equity 12.5% Strong investment leverage Unrealised gain of ` 14.13 billion as on March 31, 2021 Unrealised gain on equity3 portfolio at ` 6.80 billion Unrealised gain on other than equity3 portfolio at ` 7.33 billion 1 Total investment assets (net of borrowings) / net worth 2 Investment portfolio mix at cost 3 Equity includes mutual funds 14 Agenda • Company Strategy • Financial Performance • Update- Scheme of Arrangement • ESG Initiatives • Industry Overview 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 process on September 8, 2020 Filed for ‘No Objection letter’ on Scheme of Arrangement with the