Announcement under Regulation 30 (LODR)-Investor Presentation

Please find enclosed the updated business presentation

10 days ago

INVESTOR PRESENTATION

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Positive 20
  • Customer Integrating centricity Premium VNB ESG with continues to Growth Growth Persistency business be at the core management Productivity Aspiration to double the FY2019 VNB in four years 6

  • Premium growth - Deepen penetration in under-served customer segments Premium •

  • Enhance current distribution growth •

  • Create new distribution - Augment capability in Health and Protection - Increase focus on Pension and Annuity Robust growth maintained despite market volatility 1.

  • Protection Continue to grow both retail and group lines of focus business

  • Persistency Improve persistency across all cohorts

  • Significant improvement in persistency # Regular and Limited pay persistency in accordance with IRDAI circular on ‘Public Disclosures by Insurers’ dated September 30, 2021; 12 month rolling persistency 10 Persistency # FY2022 2M-FY2023 13 th month 84.6% 63.4% 85.5% 90 bps 160 bps 49 th month 65.0%

  • Productivity improvement Continue to leverage technology for process re- Productivity engineering and to drive productivity

  • Value of New Business (VNB) VNB ` billion 17.0% 21.7% 25.1% 28.0% 31.0% 26.50 21.63 16.05 16.21 13.28 ` billion FY2021 FY2022 Q1-FY2023 Value of New Business (VNB) 1 16.21 21.631.0% 33.4%25.1% 28.0% 4.71 VNB growth 31.6% VNB margin 31.0% 3.58 4.71 FY2019 FY2020 FY2021 FY2022 FY2023 On track to double FY2019 VNB by year end 1.

  • Customer Integrating centricity Premium VNB ESG with continues to Growth Growth Persistency business be at the core management Productivity Aspiration to double the FY2019 VNB in four years

  • Build profitability linked savings 62%

  • Performance across distribution channels Strong growth across most distribution channels Total may not add up due to rounding off 20 APE (` billion) Mix (%) Channels FY2022 Q1-FY2023 Growth (%) FY2022 Q1-FY2023 Bancassurance 30.12 5.28 12.1% ( 10.9%) 70.7% 24.5% 3 .

  • Sum assured 1 ` billion 3.30 Market 14.7% 15.8% share (%) 2.70 ` billion 2,209.35 1,768.62 Q1-FY2022 Q1-FY20223 Q1-FY2022 Q1-FY2023 Protection APE grew by 22% in Q1-FY2023 Sum assured grew by 25% in Q1-FY2023 1.

  • Financial metrics Solvency ratio continues to be strong at 203.6% ` billion Q1-FY2022 FY2022 Q1-FY2023 Profit after Tax (1.86) 7.54 193.7% 1 204.5% 2 2,231.71 1 2,404.92 2 1.56 Solvency ratio 203.6% 1 AUM 2,300.72 1 1.

  • •Introduction of initiatives & disclosures based on gap inclusion impact analysis •Outcome: Upgrade by two well known ESG rating agencies (Currently the best among Indian insurance companies); Improvement in ESG score by FTSE 31 Russell in Q1-FY2023

  • LiGo chat bot; WhatsApp bot; E-mail bot recognition capability deployed in customer calls for renewal premium collection; provides superior customer Voice bot experience and scalability Voice bot on IVR, which provides customers with personalized interactions with a human touch.

  • >50% of calls handled by bots end-to-end, thus improving Quick claim assistance through digital claim registration productivity process, real time tracking through chatbot/WhatsApp, and AI-based pre-claim assessment, and claim processing

  • Awards and Accolades – Q1-FY2023 Only Indian insurance Company to be featured in the list of top 100 companies in BW Businessworld – ‘India's Best Contact Centre Technology Champion of the Year – Life Insurance

  • Gold in the BFSI category for the Campaign “Protect & 3rd Emerging Asia Awards 2021 - Indian Chamber of Commerce (ICC) Save) Runner up award for the Company Jury award for Best Innovation and 2nd runner up award for Best Life with the Best Risk Management Diversification introduced by a ET Brand Equity Kaleido Awards 2022 Insurance Company of the Year

  • VIF grew by 18.8% to ` 232.66 billion and EV grew by 8.7% to ` 316.25 billion 1.

Negative 6
  • Source: General Insurance Council and company estimate Components may not add up to the totals due to rounding off 49 Gross direct premium (` billion) FY2022 Health

  • Protection business: FY2022 Protection split based on APE* Total new business sum assured ` billion 0.14 ` billion 0.62 (1.1%) (4.7%) 7,731.46 6,166.84 2.90 (22.1%) 5.67 (43.2%) 3.80 (28.9%) FY2021 FY2022 Group Term Retail protection Credit life - Other Credit life – ICICI Bank Sum assured grew by 25% in FY2022 Retail protection ROP *Figures in brackets represent mix of protection APE ROP: Return of premium Total may not add up due to rounding off 55

  • Well diversified pools of profit *Figures in brackets represent share of VNB Total may not add up due to rounding off 57

  • As per Indian Embedded value (IEV) method Total may not add up due to rounding off 62

  • Negative impact of ` 5.49 billion due to change in effective tax rate 3.

  • Operating assumption changes and variance as % of opening EV (0.2%) 1.0% (3.6%) Components may not add up to the totals due to rounding off 66

Mentioned Phrases & Organizations

Important keywords detected (20+)

premium (46)
protection (37)
business (27)
growth (23)
savings (23)
persistency (21)
new (21)
life (19)
value (19)
insurance (18)
retail (18)
sum (17)
non (17)
linked (17)
based (17)
billion (17)
total (16)
assured (16)
source (16)
new business (16)

Organizations identified (10+)

IRDAI (9)
ULIP (8)
ROEV (5)
VNB (3)
BNRC (3)
RBI (3)
Diversity Council (2)
NPS (2)
BCM (2)
BW Businessworld (2)

Tables extracted (27)

` billionQ4- FY2022 FY2022 Q1- FY2023 July 2022August 20225M- FY2023
New business sum assured2,599.83 7,731.46 2,209.35 957.28 26.7% 25.4% 24.9% 91.3% 47.88 (6.7%) 26.08 3.9% 20.74 (3.5%) 150.36 15.4% 77.33 19.7% 62.99 15.5% 31.84 24.4% 15.20 24.7% 11.01 16.8% 13.44 16.2% 6.29 10.5% 4.50 (5.6%)753.513,920.14
YoY growth47.8%41.1%
New business premium14.2159.49
YoY growth11.3%19.2%
APE 1 (Total)6.2527.73
YoY growth(2.3%)14.2%
RWRP 24.6920.20
YoY growth(14.0%)2.8%
` billionFY2022Q1-FY2023
Annualised premium equivalent77.33 19.7%15.20
YoY growth24.7%
New business premium (NBP) 1150.36 15.4%31.84
YoY growth24.4%
` billionFY2022Q1-FY2023
Protection APE 113.13 25.5%3.30
YoY growth22.2%
Protection Mix17.0%21.7%
Persistency #FY20222M-FY2023
13 th month84.6% 63.4%85.5%90 bps 160 bps
49 th month65.0%
` billionQ1-FY2022FY2022Q1-FY2023Growth
APE12.1977.3315.2024.7%
Total expenses10.3653.6312.2918.6%
Cost/TWRP 1 (%)19.9%18.6%23.8%-
Cost/TWRP (savings LOB) (%)11.9%12.8%16.9%-
` billionFY2021 FY2022Q1-FY2023
Value of New Business (VNB) 116.21 21.63 1.0% 33.4% 25.1% 28.0%4.71
VNB growth31.6%
VNB margin31.0%
APE (` billion)Mix (%)
SegmentsFY2022Q1-FY2023Growth (%)FY2022Q1-FY2023
Savings64.2011.9025.3%83.0%78.3%
Linked37.386.1615.1%48.3%40.5%
Non-linked21.214.2140.8%27.4%27.7%
Annuity3.000.9869.0%3.9%6.4%
Group funds2.610.56( 3 . 4%)3.4%3.7%
Protection13.133.3022.2%17.0%21.7%
Total APE77.3315.2024.7%100.0%100.0%
APE (` billion)Mix (%)
ChannelsFY2022Q1-FY2023Growth (%)FY2022Q1-FY2023
Bancassurance30.125.2812.1% ( 10.9%) 70.7% 24.5% 3 . 1% 65.7% 50.0%38.9% 24.9% 14.0% 23.6% 12.9% 9.3% 15.3%34.7%
I C I C I Bank19.263 . 0119.8%
O t her banks10.852 . 2714.9%
Agency18.283.4122.4%
Direct9.971.6510.9%
Partnership distribution7.161.6911.1%
Group11.803.1820.9%
Total APE77.3315.2024.7%100.0%100.0%
Month2M-FY2022FY20222M-FY2023
13 th month85.0%84.6%85.5%
25 th month73.7%77.3%77.6%
37 th month66.4%66.9%67.8%
49 th month64.9%63.4%65.0%
61 st month50.8%54.7%55.7%
Month2M-FY2022FY20222M-FY2023
13 th month100.0%100.0%100.0%
25 th month99.6%100.0%100.0%
37 th month97.6%99.0%99.3%
49 th month95.8%96.4%96.6%
61 st month99.1%99.2%99.3%
Q1-FY2022FY2022Q1-FY2023
Expense ratio (excl. commission) 114.7% 5.2% 19.9% 1.9% 11.9%12.8%17.9%
Commission ratio 25.8%5.9%
Cost/TWRP 318.6%23.8%
Cost/Average AUM 42.4%2.1%
Cost/TWRP (Savings LOB)12.8%16.9%
` billionQ1-FY2022FY2022Q1-FY2023
Commission2.71 7.6516.733.06
Non-commission36.909.23
` billionFY2022Q1-FY2023Growth
Value of New Business (VNB) 121.63 28.0%4.7131.6% -
VNB margin31.0%
` billionFY2022Q1-FY2023Growth
Premium growth (APE)77.33 13.13 84.6% 63.4% 12.8%15.2024.7%
Protection growth (APE)3.3022.2%
Persistency (13 th month) 285.5%-
Persistency (49 th month) 265.0%-
Productivity (Cost/TWRP: Savings) 316.9%-
` billionQ1-FY2022 FY2022Q1-FY2023
Profit after Tax(1.86) 7.54 193.7% 1 204.5% 2 2,231.71 1 2,404.92 21.56
Solvency ratio203.6% 1
AUM2,300.72 1
Gross direct premium (` billion)FY2022
Health735.82
Motor704.33
- Motor Own Damage (OD)271.78
- Motor Third Party (TP)432.55
26%18%20%
82%
80%
74%82%80%
11% 27%12%13%
28%29%
62%
60%
58%
51%44%39%
61%
56%
49%56%61%
21%22%22%
54%53%55%
25%25%
23%
Segment (`)FY2021FY2022
ULIP154,702163,770
Non-linked savings85,65494,925
Protection25,14922,608
Total85,701100,407
Channel categoryProduct categoryFY2020FY2021FY2022
BancassuranceULIP Non-linked savings Annuity Protection Total86.8% 3.3% 0.7% 9.3% 100.0%73.3% 11.6% 4.3% 10.9% 100.0%70.7% 19.2% 4.9% 5.2% 100.0%
AgencyULIP Non-linked savings Annuity Protection Total49.9% 39.2% 0.6% 10.3% 100.0%33.3% 57.0% 2.1% 7.7% 100.0%42.6% 48.8% 3.9% 4.7% 100.0%
DirectULIP Non-linked savings Annuity Protection Total66.7% 14.4% 7.2% 11.6% 100.0%61.4% 21.2% 7.8% 9.6% 100.0%73.4% 13.6% 6.6% 6.4% 100.0%
Partnership distributionULIP Non-linked savings Annuity Protection Total21.8% 49.6% 0.5% 27.8% 100.0%13.1% 70.5% 2.9% 13.5% 100.0%13.7% 71.8% 2.1% 12.4% 100.0%
Product categoryChannel categoryFY2020FY2021FY2022
ULIPBancassurance Agency Direct Partnership distribution Total68.2% 16.3% 13.0% 2.5% 100.0%64.9% 16.6% 16.1% 2.5% 100.0%57.0% 20.8% 19.6% 2.6% 100.0%
Non-linked savingsBancassurance Agency Direct Partnership distribution Total10.8% 53.6% 11.7% 23.8% 100.0%17.8% 49.3% 9.7% 23.3% 100.0%27.3% 42.1% 6.4% 24.1% 100.0%
AnnuityBancassurance Agency Direct Partnership distribution Total29.4% 11.8% 55.3% 3.5% 100.0%51.1% 14.0% 27.5% 7.4% 100.0%49.1% 23.8% 22.0% 5.1% 100.0%
ProtectionBancassurance Agency Direct Partnership distribution Total45.2% 20.9% 14.0% 19.8% 100.0%51.9% 20.6% 13.6% 13.8% 100.0%39.6% 21.7% 16.2% 22.5% 100.0%
Scenario% change in VNB% change in EV
FY2021FY2022FY2021FY2022
Increase in 100 bps in the reference rates0.7(3.5)(2.8)(4.2)
Decrease in 100 bps in the reference rates(1.7)3.23.04.6
10% increase in the discontinuance rates(3.1)(4.9)(0.9)(1.0)
10% decrease in the discontinuance rates3.25.31.01.0
10% increase in mortality/morbidity rates(10.2)(8.3)(1.6)(1.9)
10% decrease in mortality/morbidity rates10.48.41.61.9
10% increase in acquisition expenses(10.5)(10.1)NilNil
10% decrease in acquisition expenses10.410.1NilNil
10% increase in maintenance expenses(2.5)(2.3)(0.6)(0.7)
10% decrease in maintenance expenses2.52.30.60.7
Tax rates increased to 25%(11.1)(10.3)(6.2)(6.3)
10% increase in equity values1.30.62.91.9
10% decrease in equity values(1.6)(0.6)(2.9)(1.9)
` billionFY2020FY2021FY2022
Value of In force (VIF)151.87195.84232.66
Adjusted Net worth78.4395.2283.60
Embedded value 1230.30291.06316.25
Return on Embedded Value (ROEV)15.2%15.2%11.0%
ROEV excluding mortality & morbidity variance15.0%16.3%15.0%
EV growth-pre net capital injection8.4%26.4%9.5%
EV growth-post net capital injection6.5%26.4%8.7%
VNB as % of opening EV7.4%7.0%7.4%
Operating assumption changes and variance as % of opening EV(0.2%)1.0%(3.6%)
Tenor (years)References Rates
Mar 31, 2022June 30, 2022
14.35%6.01%
57.90%8.05%
108.36%8.07%
157.97%8.11%
207.57%8.15%
257.28%8.17%
307.09%8.18%

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