9MFY2017 FY2017 perform rformance ance review view January - PowerPoint PPT Presentation

9MFY2017 FY2017 perform rformance ance review view January nuary 24, 4, 2017 017

Agend enda Company any st strategy tegy and per erforma rmanc nce Opportu tunity ity Indu In dust stry ry ov over erview view 2

Agend enda Company any st strategy tegy and per erforma rmanc nce Opp ppor ortu tunity ity Indust stry ry over ervie view w 3

Strate ategy: gy: Market et lea eade dership rship + P Prof ofitable itable grow owth  Leverag age market opportunity tunity for saving ing produc ucts ts through ugh Segmente mented  Deliver ivery of superio ior r custo tomer mer value ue throug ugh h better produc ucts ts, approac ach h to tap customer r servic ice, fund nd performanc rmance and claims ims mana nagement ment market opportunity tunity-  Focus on key local l markets through ugh customiz ized regional l strategy Saving ings &  Multi i prong ng produc uct/ t/ chann nnel l approac ach h to tap protectio ion opport rtun unity ty- Retail il Protectio tion throug ugh h online ine and offline ine mode, Mortgag age link nked and Group up term  Focus on deepening ning existing ting bancas assur uranc ance relatio ionship nships and seekin ing Strengt ngthen hen allianc ances with h new bank nks mult lti i chann nnel l archite tectur ture  Focus on increas asing ing scale of our agency ncy distr trib ibutio ution n chann nnel and explo lore non-tr trad aditi tional nal  Using ng data analytics tics capabili lity ty to grow w direct t to customers chann nnels ls  Establi lish h relatio ionship nship with h new non n bank nk partners with focus us on quali lity ty  Expand and our protectio tion n busine iness Focus on increas asing ing  Improve customer retentio ion value ue of new busine iness  Mainta tain in market ket-lead leading ing cost efficie ienc ncy Leverag age  Digit ital aliz izing ing sales and service processes technol nology for  Increas asin ing digit ital al marketing ing and sales profita itable le growth wth 4

New ew busi siness ess 5

New w Busin iness ess Rs b bn FY2015 FY2016 Growt wth 9MFY20 Y2016 9MFY20 Y2017 Growt wth RWRP 1 45.96 49.68 8.1% 33.44 42.77 27.9% APE 2 47.44 51.70 9.0% 34.94 44.58 27.6% Savings gs APE 46.68 50.31 7.8% 34.16 42.84 25.4% Protect ction ion APE 0.76 1.39 83.6% 0.78 1.74 122.1 .1% 1. 1. Retail weighted hted received ved premium um 2. 2. Annua ualized d premium um equi uiva valent nt 6

Premium emium summary mary 200 20 191.64 1.64 20 200 18.13 13 147.75 7.75 153.07 3.07 15 150 150 15 9.14 14 53.57 57 127.79 7.79 7.64 64 124.29 4.29 14.70 70 8.97 97 48.21 21 47.41 41 Rs bn Rs bn 10 100 100 10 34.32 32 35.66 66 119.95 9.95 50 50 50 50 95.71 71 92.69 69 81.00 00 77.42 42 0 0 FY2014 FY20 14 FY2015 FY20 15 FY2016 FY20 16 9MF 9MFY2 Y201 016 9MF 9MFY2 Y201 017 Ret Retai ail re l renewal newal pre remium mium Retai Ret ail n l new busi usiness ness pre remium mium Gro Group up prem remium ium 7 Compon ponents nts may not add up to the totals s due to roundi nding ng off

Market ket share re 1 30% 30 30 30% 24.5% 5% 25 25% 23.5% 5% 25% 25 23.0% 0% 21.9% 9% 18.9% 9% 20 20% 20% 20 15 15% 15% 15 13.0% 0% 12.1% 1% 11.3% 3% 11.3% 3% 10% 10 10% 10 7.2% 2% 5% 5% 5% 5% 0% 0% 0% 0% FY2014 FY20 14 FY2015 FY20 15 FY20 FY2016 16 9MF 9MFY2 Y201 016 9MFY2 9MF Y201 017 Within t Wi thin total al ind industr ustry Wi Within p thin priv ivate s ate secto tor 1. Retail weighted hted rece ceived ved premium (RWRP) P) basis 8 Source ce: IRDAI, AI, Life insu suranc nce counc ncil

Consistent sistent leadership adership in private ivate sector ctor 1 Market Share FY2012 FY2013 FY2014 FY2015 FY2016 9MFY20 Y2017 LIC 63.5% 62.0% 62.0% 51.0% 48.5% 47.0% ICICI Prude dent ntial ial 5.9% 7.0% 7.2% 11.3% 11.3% 13.0% SBI Life 6.2% 7.7% 9.7% 4.4% 5.1% 11.3% HDF DFC Life 5.2% 7.3% 7.6% 5.7% 6.7% 6.2% Max Life 3.1% 3.2% 3.9% 4.8% 4.8% 4.8% PNB Met Life 1.0% 1.2% 1.3% 1.7% 2.1% 1.9% Bajaj aj Allianz anz 2.7% 2.6% 2.2% 1.9% 1.6% 1.9% Market rket leader ders s in priva rivate te market ket since ce FY2002 02 1. 1. Retail weighted hted received ved premium um (RWRP) P) basis Source ce: IRDAI, AI, Life insur uranc nce counc ncil 9

Product duct mix Product duct mix mix 1 FY2014 FY2015 FY2016 9MFY20 Y2016 9MFY20 Y2017 Savings gs 97.8% 98.4% 97.3% 97.8% 96.1% ULIP 64.1% 83.1% 80.8% 82.3% 83.1% Parti tici cipat patin ing 18.2% 13.2% 14.1% 13.0% 10.2% Non-Partici articipat patin ing 13.3% 0.6% 0.4% 0.4% 1.4% Group up 2 2.2% 1.5% 2.0% 2.1% 1.4% Protect ectio ion 3 2.2% 1.6% 2.7% 2.2% 3.9% 60 60 1.39 50 50 0.76 1.25 1.02 7.27 1.74 6.26 1.24 40 40 4.56 0.75 0.78 Rs bn Rs bn 0.88 5.33 4.53 30 30 6.28 41.79 20 39.40 20 37.04 28.74 22.10 10 10 0 0 FY2014 FY2015 FY2016 9MFY2016 9MFY2017 ULIP Participating Others (savings) Protection 1. 1. Annua ualized d Premium um Equivalent nt (APE) E) basis 2. 2. Group p exclude udes group up protection ction produc ducts 10 3. 3. Protection ction incl clude udes retail and group p protection on produc ducts

New w business iness sum assured ured 2,50 2,500 2,500 2,50 2,05 054.17 4.17 2,000 2,00 2,00 2,000 1,54 546.25 6.25 971.99 1.99 1,50 1,500 1,50 1,500 Rs bn Rs bn 1,19 195.35 5.35 566.85 6.85 1,02 028.27 8.27 928.65 8.65 1,00 1,000 1,00 1,000 528.68 8.68 440.56 0.56 422.57 2.57 1082 82.18 18 50 500 500 50 979.40 9.40 666.67 6.67 587.71 7.71 506.09 6.09 0 0 9MFY2 9MF Y201 016 9MF 9MFY2 Y201 017 FY20 FY2014 14 FY20 FY2015 15 FY20 FY2016 16 Ret Retai ail Gro Group up 11

Channe nnel l mix Channel nel Mix 1 FY201 014 FY201 015 FY201 016 9MFY20 2016 16 9MFY201 Y2017 Banca cassu surance rance 53.2% 2% 58.4% 4% 57.3% 3% 60.3% 3% 57.7% 7% Agency cy 28.2% 24.4% 23.8% 21.6% 23.0% Direct 6.3% 8.6% 9.8% 9.2% 11.9% Corpor orat ate agents and brokers rs 9.9% 7.0% 7.0% 6.7% 5.6% Group up 2.5% 1.6% 2.1% 2.2% 1.9% 60 60 60 60 50 50 50 50 3.61 3.32 5.04 2.51 4.06 40 40 40 40 5.30 12.31 Rs bn Rs bn 2.36 11.58 3.39 10.24 30 30 30 30 3.20 2.16 7.54 9.71 20 20 20 20 25.70 29.64 27.70 21.07 10 10 10 10 18.33 0 0 9MFY201 9MFY2 016 9MFY201 9MFY2 017 FY20 FY 2014 14 FY20 FY 2015 15 FY20 FY 2016 16 Bancass Banc assuranc urance Agenc ency Direc Direct Corpo Co rporate rate Agen ent an and Brok d Broker er 12 1. 1. Annua uali lized ed Premi mium um Equiv ivale lent nt (APE) ) basis is Graphs phs are on Retail APE basis

Quality ity param amet eters ers 13

Persistency sistency 1 Month FY2014 FY2015 FY2016 9MFY20 Y2016 8MFY20 Y2017 th month 13 th 13 71.5% 79.0% 82.4% 80.9% 83.4% th month 25 th 25 68.4% 65.9% 71.2% 69.2% 72.9% th month 37 th 37 57.3% 64.3% 61.6% 62.3% 64.3% th month 49 th 49 20.3% 54.4% 62.2% 71.6% 2 60.6% 2 st month 61 st 61 12.7% 14.5% 46.0% 28.2% 65.1% 1. 1. As per IRDA circu cular dated d January y 23, , 2014 14 th month 2. 2. Excludi uding ng Single premium um 49 th h persi sisten stency cy for 8MFY201 2017 7 is 59.4 .4% as compa pared d to 58.7% 8.7% for 9MFY201 2016 14

Cost t efficiency ficiency FY2014 FY2015 FY2016 9MFY20 Y2016 9MFY20 Y2017 Expens nse ratio (excl cl. . commissio ssion) n) 1 13.6% 11.6% 11.0% 12.5% 12.2% Commissio ion n ratio 2 5.2% 3.8% 3.5% 3.5% 3.7% Cost/TWR WRP 3 18.8% 15.4% 14.5% 16.0% 15.9% Cost / A Averag age AUM 4 2.9% 2.5% 2.5% 2.4% 2.7% 30 30 30 30 25.45 45 22.59 59 22.50 50 21.90 90 6.20 20 18.39 39 20 20 20 20 5.53 53 6.27 27 5.08 08 Rs bn 4.03 03 Rs bn 19.25 25 10 10 10 10 16.31 31 16.97 97 16.81 81 14.36 36 0 0 FY20 FY2014 14 FY2015 FY20 15 FY20 FY2016 16 9MF 9MFY2 Y201 016 9MF 9MFY2 Y201 017 Non- Non-Commis missio ion Commis mission 1. Expens nse ratio: o: All ins nsur uranc nce expens nses s (excl cl. . commissi sion on) ) / (Total al premium um – 90% of single gle premium um) 2. Commissi sion on ratio: o: Commiss ssion on / (Total premium um – 90% of single 90 gle premium um) 3. Cost st / (Total premium um – 90% of single gle premium um) 15 4. . Cost st / Averag age assets s under management nt during ng the period od

Super erior ior fund d perfor formance mance acros oss s cycle cles* s* 15.9% 14.6% 12.5% 12.9% 12.8% 11.1% 11.4% 10.0% 10.1% 9.7% 8.6% 8.5% 7.6% 7.5% 4.2% 4.2% 1Y 1Y 5Y 5Y 1Y 1Y 5Y 5Y 1Y 1Y 5Y 5Y 1Y 1Y 5Y 5Y Maxim aximiser iser Balanc ancer er Preserve rver Protec ector r (Equit uity y Fund) nd) (Balan anced d fund nd) (Liquid iquid fund) nd) (Debt bt fund) nd) Be Benchm nchmar ark Fun Fund 94.9% of debt ebt investments vestments in AAA A rate ted and d gov over ernme nment nt bonds onds 16 * As on Dece cembe ber 31, 2016 16