Industry Profile: The size of the Indian non-life insurance sector was ₹ 1.28 trillion on a GDPI basis as of March 31, 2017, and grew at a CAGR of 17.4% between fiscal 2001 and fiscal 2017. The sector offers different products such as motor, health, crop, fire, marine, liability, travel, aviation, and home insurance aimed at meeting different protection needs of retail customers, government, and corporate customers. The industry operates under a “cash before cover” model under which insurers are not required to assume underwriting risk until premiums are received, except in the case of government-sponsored schemes such as mass health and crop insurance. According to Swiss Re, India was the fifteenth largest market in the world and the fourth largest in Asia in 2016, behind China, Japan, and South Korea. India was also amongst the fastest growing non-life insurance markets from 2011 – 2016, growing at 14.5% (as per Swiss Re). However, despite its size and growth profile, India continues to be an underpenetrated market with a non-life insurance penetration of 0.77% in 2016, as compared to 1.81% in China, 1.70% in Thailand, 1.67% in Singapore, and 1.62% in Malaysia, and a global average of 2.81% in 2016.

According to Swiss Re, India was the fifteenth largest market in the world and the fourth largest in Asia in 2016, behind China, Japan, and South Korea. India was also amongst the fastest growing non-life insurance markets from 2011 – 2016, growing at 14.5% (as per Swiss Re). However, despite its size and growth profile, India continues to be an underpenetrated market with a non-life insurance penetration of 0.77% in 2016, as compared to 1.81% in China, 1.70% in Thailand, 1.67% in Singapore, and 1.62% in Malaysia, and a global average of 2.81% in 2016.
As of March 31, 2017, there were 30 companies in the Indian non-life insurance sector.
  • Four public sector companies offering multiple products – National Insurance Company, The New India Assurance, Oriental Insurance Company, and United India Insurance
  • Eighteen private sector companies offer numerous products. ICICI Lombard General Insurance is one of them.
  • Two public sectors specialized single product line non-life insurance companies – Agriculture Insurance Company (AIC) and Export Credit Guarantee Corporation (ECGC)
  • Six standalone private health insurance companies – Apollo Munich, Cigna TTK, Max Bupa, Religare Health, Star Health, and Aditya Birla

Single product insurance is not holding a significant market share, only 11%. Out of it Public sector Agriculture Insurance Dominate with 6%, Private health insurance keep 4% remaining 1% held by Export credit insurance. Motor insurance contains a significant part of Multi-product insurance. Private players lead with 11 vs. 7% against PSU.

Company profile: ICICI Lombard General Insurance is a general insurance company providing various services like health insurance, Motor insurance, Crop Insurance, Fire insurance, Personal accident insurance, liability insurance, travel insurance, and marine insurance. It was promoted by Fair fax and ICICI bank. The company is India’s largest private-sector non-life insurer based on gross direct premium income in fiscal 2017. Having parents like Fairfax and ICICI Helps the company in many terms, like distribution channels. The company holds an extensive distribution channel, including 48 corporate agents, including ICICI Bank, and Tie-ups with motor manufacturers like Maruti, which is why it’s the fastest-growing segment of the company with 42%+ growth of 20383 individual agents, direct sales, and digital sales.

Shareholding pattern:  BSE Data

Financials and Ratio  :  [table id=100 /]

Future Prospects:  General insurance market is not much penetrated in India. It is growing and is the largest Private sector insurance company. The growth potential is significant. Most financials are good. The company is paying dividends also.