FY2 Y2017 017 perfo forma rmance nce review iew Apr pril il 25, , 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
Str trate tegy gy : : Market ket lea eader dership ship + P Prof ofita table ble 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 aditio 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-leadi leading ng cost efficie iency 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
Ke Key y Hi Highligh hlights Rs bn FY2015 15 FY2016 16 Growt owth FY2017 17 Growt owth APE 1 47.44 51.70 9.0% 66.25 28.1% Savings ngs APE 46.68 50.31 7.8% 63.64 26.5% Prote tecti ction on APE 0.76 1.39 82.9% 2.60 87.1% Value ue of New Busines iness s (VNB) B) 2 2.70 4.12 52.6% 6.66 61.7% VNB Margi gin 2 5.7% 8.0% 10.1% Indian an Embedd bedded ed Value ue 138.22 22 139.39 39 0.8% 161.84 84 16.1% 1. 1. Annua ualized d premium um equi uiva valent nt 5 2. 2. Based d on actual al cost
New ew busi siness ess 6
Market ket share re 1 Rs bn FY2015 15 Growt owth FY2016 16 Growt owth FY2017 17 Growt owth RWRP 45.96 41.3% 49.68 8.1% 64.08 29.0% 30% 30 23.0% 0% 22.3% 3% 21.9% 9% 20% 20 12.0% 0% 11.3% 3% 11.3% 3% 10 10% 0% 0% FY20 FY2015 15 FY20 FY2016 16 FY20 FY2017 17 Wit ithin hin to total al ind indus ustr try Wit ithin hin priv ivat ate secto tor Mar arket ket leader aders s in private rivate secto tor since ce FY2002 02 1. Retail weighted hted rece ceived ved premium (RWRP) P) basis 7 Source ce: IRDAI, AI, Life insu suranc nce counc ncil
Premium emium summary mary 250 25 223.54 3.54 10.69 69 191.64 1.64 200 20 18.13 13 70.66 66 153.07 3.07 15 150 9.14 14 53.57 57 Rs bn 48.21 21 100 10 142.19 2.19 119.95 9.95 50 50 95.71 71 0 FY2015 FY20 15 FY2016 FY20 16 FY20 FY2017 17 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 8 Compon ponents nts may not add up to the totals s due to roundi nding ng off
Product duct mix 1 1 Product duct mix mix 1 FY2015 FY2016 FY2017 Savings gs 98.4% 97.3% 96.1% ULIP 83.1% 80.8% 84.1% Parti tici cipat patin ing 13.2% 14.1% 9.6% Non-Partici articipat patin ing 0.6% 0.4% 1.1% Group up 2 1.5% 2.0% 1.3% Protect ectio ion 3 1.6% 2.7% 3.9% 70 70 2.60 60 1.58 58 60 60 6.38 38 1.39 39 50 50 0.76 76 1.25 25 1.02 02 7.27 27 6.26 26 40 40 Rs bn 30 30 55.69 69 41.79 79 20 20 39.40 40 10 10 0 FY20 FY2015 15 FY20 FY2016 16 FY20 FY2017 17 ULIP ULI Par artic ticipating ipating Others (s Othe rs (savin avings) Prote tectio tion 1. 1. Annua ualized d Premium um Equivalent nt (APE) E) basis 2. 2. Group p exclude udes group up protection ction produc ducts 9 3. 3. Protection ction incl clude udes retail and group p protection on produc ducts
Prote tecti tion on Rs bn FY FY2015 15 FY FY2016 16 FY FY2017 17 Reta tail Prote tecti ction 0.36 0.94 2.09 Grou oup p Term 0.06 0.06 0.13 Mortg tgag age e based d 0.33 0.39 0.38 Total APE 0.76 1.39 2.60 4,000 4,00 New Busine iness Sum m Assure red 2,94 940.40 0.40 3,00 3,000 Rs bn 1,31 315.96 5.96 2,000 2,00 1,54 546.25 6.25 1,19 195.35 5.35 566.85 6.85 1,00 1,000 528.68 8.68 1,62 624.44 4.44 979.40 9.40 666.67 6.67 0 FY20 FY2015 15 FY20 FY2016 16 FY2017 FY20 17 Ret Retai ail Gro Group up 10
Channe nnel l mix Chan anne nel Mix 1 FY2015 15 FY2016 16 FY2017 17 Bancas assur surance ance 58.4% 57.3% 56.9% 24.4% 23.8% 23.3% Agency cy Direct ct 8.6% 9.8% 11.9% Corpora porate te Agen ents ts and Brokers okers 7.0% 7.0% 6.1% Grou oup 1.6% 2.1% 1.7% 70 70 4.07 07 60 60 7.89 89 3.61 61 50 50 3.32 32 15.41 41 5.04 04 4.06 06 40 40 Rs bn 12.31 31 11.58 58 30 30 20 20 37.72 72 29.64 64 27.70 70 10 10 0 FY20 FY2015 15 FY2016 FY20 16 FY20 FY2017 17 Bancas Ban assuranc urance Agency Direct Dir Corp rporate ate Agents an nts and Bro Brokers rs 11 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 12
Pers rsis iste tency ncy 1 Month FY2015 15 FY2016 16 11MFY2017 017 th month 13 th 13 th 79.0% 82.4% 86.0% th month 25 th 25 th 65.9% 71.2% 74.2% th month 37 th 37 th 64.3% 61.6% 67.3% th month 49 th 49 th 54.4% 62.2% 61.1% st month 61 st 61 th 14.5% 46.0% 57.9% 13 1. 1. As per IRDA circu cular dated d January y 23, , 2014 14
Cust stomer omer Serv rvice ice Claim im Settlement ment ratio 1 93.8% 96.2% 96.9% 100% 10 0% 50% 50 0% 0% FY FY20 2015 15 FY FY20 2016 16 FY FY20 2017 17 Grievanc nce Ratio 2 185 185 200 20 153 153 15 150 95 95 10 100 50 50 0 FY FY20 2015 15 FY FY20 2016 16 FY FY20 2017 17 1. Individ ividual al Death th Claim ims 14 2. Numb mber er of grievanc evances es per 10,000 000 new busines iness policies es issued ued in the same me period
Di Digitizatio gitization n impact act E-Login in 1 1 and onli line ne renewal al payment ment 2 93% 93% 93% 93% 10 100% 0% 89% 89% 57% 57% 52% 52% 44% 44% 50 50% 0% 0% FY FY20 2015 15 FY FY20 2016 16 FY FY20 2017 17 E-Log ogin in Onlin Online ren e renewal pay ewal payme ment nt Emplo loyee produc uctiv ivity ty 3 3 5.55 6 4.61 4.26 4 Rs mn 2 0 FY20 FY 2015 15 FY20 FY 2016 16 FY FY20 2017 17 1. 1. New business iness applic licatio ations ns gener nerate ated throug ugh h digital ital medium ium 2. 2. Transac nsactio tions ns process ssed throug ugh online ine , direct debit it and ECS 15 3. 3. RWR WRP / Averag age no. of emplo loye yees s during ng the perio iod
Cost t efficiency ficiency FY2015 FY2016 FY2017 Expens nse ratio (excl cl. . commissio ssion) n) 1 11.6% 11.0% 11.4% Commissio ion n ratio 2 3.8% 3.5% 3.6% Cost/TWR WRP 3 15.4% 14.5% 15.1% Cost / A Average age AUM 4 2.5% 2.5% 2.8% 40 40 31.60 60 30 30 25.45 45 7.59 59 22.50 50 Rs bn 6.20 20 20 20 5.53 53 24.01 01 19.25 25 10 10 16.97 97 0 FY2015 FY20 15 FY2016 FY20 16 FY2017 FY20 17 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 90% of single gle premium um) 3. Cost st / (Total premium um – 90% of single gle premium um) 16 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 21.2% 18.7% 15.5% 14.5% 14.7% 12.8% 12.3% 11.9% 11.0% 11.1% 10.7% 8.5% 9.5% 8.4% 7.4% 7.1% 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) 1Y 5Y 1Y 5Y 1Y 5Y 1Y 5Y Fun Fund Benchm Be nchmar ark More e than 90% of linke nked portfol tfolio has out perfo formed bench chma mark k indices ces since ce incep ceptio tion* 17 * As on March 31, 2017 17
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