INVESTOR DAY 2018

Group Insurance & Takaful

7 November 2018

Presenters:

Mr. Kamaludin Ahmad

Group CEO, Etiqa Insurance & Takaful

Mr. Lee Hin Sze

Group CFO, Etiqa Insurance & Takaful

KEY INITIATIVES

OVER THE LAST

5 YEARS

Etiqa is keeping its focus simple

Fast Claims Easy to be Dealing

WithBest Advice

FEBA

3

4

What we have done for the last 5 years

Regional Growth

Bancassurance

Transformation

Life /

Family

Takaful

Agency

Transformation

Growing Long Term

Sustainable Value in

Life/ Family

Fast & Easy

Brand Ambassadors

New Innovative Products

Revamping E-Channels

Close & Regular Monitoring of Initiatives

Quest for Fire

& PA Business

Etiqa

Apps

Video assisted

claims

Etiqa Partner Portal

Applications programming

Interface (API)

Data mining

& analytics

DIGITALISATION BUSINESS DEVELOPMENT CUSTOMER EXPERIENCE

THE RESULTS

+930• Wide Bancassurance network

• Maybank branches (Malaysia, Singapore,

Philippines & Indonesia) & 3rd Party Bank partners

(in Malaysia)

Highest rated insurance

& Takaful entities in Malaysia• ELIB: A- (Fitch) AAA (RAM)

• EGIB, EGTB, EFTB: A- (Fitch)

• EIPL: A- (Fitch)

Strong agency force• +8,000 (Insurance & Takaful agents)

• 27 branches/sales service centres

No 1 in Malaysia• Combined General Insurance/ Takaful

• General Takaful Business

• Bancassurance / Bancatakaful

• Online Insurance/Takaful

Our Achievements

Fastest growing insurance

company in Malaysia(across all segments YTD 2018, Life Insurance,

Family Takaful, General Insurance, General Takaful)

6

FY2017 RM6.2b Topline

RM1.0bProfit

RM4.0b Net Adjusted

Premium

RM34.5bTotal

Assets

RM81.0mValue of New

Business

Continuously Delivering Healthy Revenue

A rising trend for

gross premium and

profit before tax

(PBT) since the

inception of the

MAHB Group,

registering CAGR of

15% and 21%

respectively. In

2015, the PBT was

affected by adverse

equity market

performance.

7

while maintaining

expense discipline 562 605 623 669 710

0%10%20%30%40%50%60%70%80%90%100%

0

200

400

600

800

2013 2014 2015 2016 2017

Overheads in Million

6.0%

2,700 2,942 3,219 3,589 4,041

2013 2014 2015 2016 2017

Net Adjusted Premium in Million

10.6%

LIFE & FAMILY TAKAFUL:

KEY FOCUS AREAS

9

Growing Market Share

Competitor 1Competitor 2

10

New Business Profit Margin Life/Family

Improvement due to better profit margin products

COMBINED LIFE/FAMILY

2015 2016 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2

ELIB +EFTB NBP 16.9% 17.3% 14.4% 11.3% 12.0% 14.3% 17.8% 16.3%

Banca NBP 16.3% 20.9% 18.4% 15.1% 15.2% 16.9% 19.2% 16.5%

Agency NBP 18.3% 8.0% 3.0% -0.5% 0.9% 6.0% 12.3% 15.8%

16.9% 17.3%

14.4%

11.3% 12.0%

14.3%

17.8%

16.3%

16.3%

20.9%

18.4%

15.1% 15.2%16.9%

19.2%

16.5%

18.3%

8.0%

3.0%

-0.5%0.9%

6.0%

12.3% 15.8%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Life/Family: NBP against Time (Profit Margin Growth)

ELIB +EFTB NBP Banca NBP Agency NBP

Launched new/enhanced regular premium investment-linked products, i.e. MaxiLink,

MegaLink and Elite Medic Plus

30% increase in higher case size

OUTCOME FROM APPROVED FOCUS STRATEGY, Q2 2017 VS. Q2 2018:

INDUSTRY

UPDATES

Life Agency registered New Business Premium growth of 63% (Q2 FY2018 vs.

Q2 FY2017) in a modest market environment - industry growth contracted

by 3%.

32% increase in no. of manpower,

from 728 to 962 YoYAchieved product portfolio mix:

Investment-Linked 76% : Ordinary-

Linked 24%

28% in increased agents productivity,

from 7.1 to 9.1 cases

11

Our Life Agency business recorded high growth

Banca Regular Premium Journey

Our Banca Transformation

12

Y1P – Year 1 Persistency

SR/SRX – Smart Retirement Smart Retirement Xtra

SC/SCX – Smart Cash / Smart Cash Xtra

PVS – Premier Value Saver

Edu - Education

Regula

r pre

miu

m n

ew

busi

ness

40%vs

8% (industry)

Life Family APE

Growth

Life APE

21% (#1)

44%vs

7% (industry)

RP/RC

• Life Market Share (New Business) data from LIAM as at 1H18 (YoY)

• Family Market Share (New Business) data from MTA ISM as at Jun’18 (YoY)

• Life Family NB APE: 100% RP + 10% SP + 10% Credit

Market

Share

1H18: Banca Etiqa is #1 on Overall Life/Family New Business Annual Premium Equivalent, +40% YoY

Banca Etiqa is #1 on Regular Premium/Contribution, +44% YoY

22% (#1)

RP/RC

Source:

Our Banca Transformation: The Results

13APE – Annualised Premium Equivalent

NB – New Business

RP/ RC – Regular Premium/Contribution

92 93 93 92 93 172 210 249205 225 231 233 253

242 236 225

718 716 750862

944

1,0191,113

1,2127.6% 7.6% 7.6%8.4%

8.9%

9.9%10.5%

11.2%-15.5%

-9.5%-4.7%

13.8%

27.0%

38.4%45.4% 42.1%

6.7% 7.4% 8.0%

5.7% 7.4% 5.6% 5.0% 6.7%

-150.0%

-100.0%

-50.0%

0.0%

50.0%

0

500

1,000

1,500

2,000

2,500

Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun-18

Growth RateRM'million

Market Share (%)

Life & Family - Rolling 12 Months Market Share & Growth Trends(New Business Premium/Contribution)

Annualised (Regular) Prem/Contr -IL Annualised (Regular) Prem/Contr - OL Single & Group Prem/Contr

Etiqa Growth rate (%) Industry Growth Rate (%)

92 93 93 92 93172 210

249

205 225 231 233 253

242236

22572

72 75 8694

102111

121

5.5% 5.5% 5.5% 5.7% 6.0%

7.1%7.6%

8.1%

4.0%11.1% 10.6%

13.5%19.1%

32.0%40.0%

45.0%

15.2% 16.7% 15.2%

10.1% 9.5%3.3% 2.2% 2.2%

-150.0%

-100.0%

-50.0%

0.0%

50.0%

0

100

200

300

400

500

600

700

800

900

1,000

Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun-18

Growth RateRM'million

Market Share (%)

Life & Family - Rolling 12 Months Market Share & Growth Trends(Adjusted New Business Premium/Contribution)

100% Annualised (Regular) Prem/Contr -IL 100% Annualised (Regular) Prem/Contr - OL 10% Single & Group Prem/Contr

Etiqa Growth rate (%) Industry Growth Rate (%)

SPLY SPLY

New Business 8.4% 11.2% 2.8 4 4

Adjusted New Business 5.7% 8.1% 2.4 6 4

Single - OL & IL 25.6% 32.4% 6.7 1 1

Group 3.7% 4.2% 0.5 9 8

Single & Group 11.3% 14.3% 3.0 3 2

Annualised (Regular) - OL 10.3% 12.1% 1.8 5 4

Annualised (Regular) - IL 2.2% 5.4% 3.2 8 6

Annualised (Regular) 5.0% 7.3% 2.2 6 5

ROLLING 12 MONTHS

Jul 2017 - Jun 2018

% Share Rank

Current Current

Overtook competitors 1 & 2 and improved to 4th ranking for Life & Family (Adjusted New Business)

Etiqa vs Industry

Etiqa Life & Family: New Business, 42.1% growth YoY; Adjusted New Business,

45.0% growth YoY

40.6% growth in Single & Group Premium/Contribution supported by higher

production from Maybank Bancassurance through Single Premium Nationwide

Campaign, as well as higher production from LPPSA business through Agency

and higher number of submission and loan disbursement through

Bancassurance.

46.2% growth in Regular Premium/Contribution contributed by higher average

case size, intermediaries productivity supported by IA model coupled with

higher persistency from Bancassurance.

Industry Life & Family: New Business, 6.7% growth YoY; Adjusted New Business,

2.2% growth YoY

The top 3 players in New Business collectively recorded 2.3% growth.

The top 3 players in Adjusted New Business collectively recorded negative

growth of -0.3%.

11.4% growth in Single & Group Premium/Contribution (particularly in Group).

1.1% growth in Annualised (Regular) Premium/Contribution (lowest as

compared to the last 8 periods).

Source: LIAM/ISM Statistical Bulletin

Note: i. Adjusted Premium/Contribution is defined as 10% Single & Group Premium/Contribution and

100% of other premiums/contributions

ii. OL – Ordinary Life; IL – Investment Linked

Market Share & Ranking for Life & Family

14

GENERAL

INSURANCE/TAKAFUL:

KEY FOCUS AREAS

16

Our Strategic Business Lines have shown

continuous growth

• Fire and Personal Accident (PA) have continuously outperformed the market growth.

• We have progressed to become the market leader in PA business.

FIRE PA

Competitor 3

Competitor 2

Competitor4

Competitor5

It is our mantra to become the fastest..

17

…and easiest

• Simply WhatsApp to 019-6507931

• No forms, no documents

• 24-hours approval

INSTANT WINDSCREEN PAYMENT

IN 15 MINUTES (BNM TAT 7

working days)

FAST & EASY PA CLAIMS FOR

OUTPATIENT & HOSPITAL

ALLOWANCE

CAR ACCIDENT REPAIR

APPROVAL WITHIN 30 MINUTES

FAST & EASY CLAIMS ADVANCED

FOR SME (CAPSME) (BNM TAT 7

working days

• Available for Customers via Claims Careline

• For fast-track claims like windscreen, minor car accident & home damage

• Have successfully tried it out on more than 40 Customers

• Average settlement time of 15 Minutes, compared to Days previously

E-CLEVA: Video assist claims - Fast claims from days to minutes

HOW IT WORKS?

• A video link will be sent to

Customer’s smartphone via

text message.

• The live video would enable

Customers to show their

damages in real time, for

further assessment.

• Once assessed, Offer Letter

would pop up.

• Customers can sign in on

their smartphone screens and

payment would be instantly

credited via M2e.

We are the first to introduce video-assisted claims

18

19

Increased competition seen

over the last few years with

tariff liberalisation also

contributing to this

Premiums have been

impacted by a decline in

Agency and Bancassurance

This is partly due to a

conscious strategy to focus

on more profitable

segments in the market

through Model Loss Ratio

And partly attributed to strong competition in pricing for some motor franchises

Detariffication: The Challenges

20

71.5%71.4%

71.6% 71.7%

72.2%

71.9%

72.3%

71.6%

70.7%

70.4%

71.0%

70.2%

70.4%70.5%

70.6%

71.4%

70.7%

71.7%

71.3%

70.8%

69.6%

69.1%

69.7%

69.2%

67.0%

68.0%

69.0%

70.0%

71.0%

72.0%

73.0%

Etiqa’s Model Loss Ratio by Month

Improving Model Loss Ratio Trends

Overall, Etiqa’s Model Loss Ratio has improved and we continue to focus on a ROE of 12% for the

Motor business

SPLY SPLY

Net Written 10.0% 9.7% -0.2 2 2

Personal Accident 15.7% 17.3% 1.6 1 2 -1

Fire 8.0% 8.9% 0.9 4 4

MAT 4.3% 4.3% -0.1 7 8 -1

MISC 1.9% 1.8% -0.1 17 17

Motor 11.9% 11.2% -0.7 3 3

ROLLING 12 MONTHS

Jul 2017 - Jun 2018

% Share Rank

Current Current

1,074 1,060 1,058 1,052 1,040 1,023 1,014 1,021

38 39 40 40 41 42 44 4216 16 16 17 19 20 20 17

185 173 173 176 179 190 198 203

193 200 203 196 196 196 202 207

10.3% 10.1% 10.0% 10.0% 9.8% 9.8% 9.7% 9.7%

2.9%

-1.1% -1.0% -2.1% -2.0% -1.1% -0.9% 0.6%2.7%

2.3% 2.6% 2.3% 2.8% 2.5% 3.0% 3.0%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18

Growth RateRM'million

Market Share (%)

General - Rolling 12 Months Market Share & Growth Trends(Net Written Premium/Contribution)

Motor MISC MAT Fire Personal Accident Etiqa Growth rate (%) Industry Growth Rate (%)

Maintained ranking for General Net Written Premium/Contribution

Etiqa vs Industry

Etiqa General (Net Written), 0.6% growth YoY

3.4% growth in MAT supported by higher business retention from Regional Distribution.

15.3% growth in Fire contributed by higher production mainly from Agency and Bancassurance.

3.7% growth in Miscellaneous attributed to higher production from Agency.

5.7% growth in Personal Accident contributed by higher production from Agency, Enterprise Corporate and E-Channel.

Industry General (Net Written), 3.0% growth YoY

0.2% reduction from top 5 players (46.9% of market share).

Growth in all classes of business except Personal Accident.

Market Share & Ranking for General Net Written

Premium / Contribution

Source: ISM Statistical Bulletin 21

DIGITALISATION &

OMNI-CHANNELS

Note: Baseline Estimation According To Malaysia Internet Insurance & Takaful Industry - 12 months Performance Report

Source: ISM Stastistical Bulletin; General Insurance & Takaful

Etiqa’s Market Share Remaining Market ShareLegend:

2017

GENERAL

TAKAFUL

87.5%

2017

GENERAL

INSURANCE

33.0%

E-Channel continues to grow despite new

entrants eroding the market share

23

We revamped our Sales Portals to be more

Customer-centric

24

• 1st Etiqa video to cross 1 Million views

• Views rates are 62% higher vs. Industry @ 39%

• Engagement rates are 500% higher vs. Industry

AWAL ASHAARITV PERSONALITY & ENTREPRENEUR

3.5 MILFOLLOWERS

1.8 MILFANS

Bancassurance’s PA showed 79%* strong growth by

branches leveraging on Card Replacement, Account

Opening & ASB Cross Sell as touch points, boosted by the

launching of #DEMI Campaign.

Driving Etiqa’s Brand Association with ‘Fast & Easy’#DEMI Nationwide Campaign in Growing PA Business

Note: *From January 2018 until 1-7 May 2018

: Launching of #Demi on 29 March 2018 & went nationwide on 23 April 2018 onwards.

We ramped up our Marketing efforts via online

25

26

We Continue To Innovate Our Online Channel

• Continuously improve Etiqa Online Infosite accessibility

and capability by improving the UI/UX

• Application Programming Interface (API) to facilitate

motor renewal via M2U and 3rd party partners

ACTION PLAN

• Inclusion of road tax renewal as part of the overall online renewal process

• Improve the system hygiene, i.e. fast loading speed, low system downtime and low system

error / bugs

• Continuously improve the online sales funnel to increase conversion rate

• Recruit more online business partners to drive sales

IMPACT OF

SPLITTING

MAHB

ETIQA INSURANCE BERHAD(EIB)

ETIQA TAKAFUL BERHAD(ETB)

BEFORE

MAHB

ETIQA GENERAL

INSURANCE BERHAD

(EGIB)

ETIQA GENERAL TAKAFUL BERHAD (EGTB)

ETIQA FAMILY TAKAFUL BERHAD (EFTB)

ETIQA LIFE INSURANCE

BERHAD (ELIB)

Legend:

New Company License Application

Conversion from Existing Company License

AFTER

EIB ETB ELIB EGTB

Prior to 1-Jan-18

Insurance / Takaful License

Composite Composite None None

Paid up RM152m RM400m RM1 RM1

Shareholder Y Y Y Y

Life / Family Y Y N N

General Y Y N N

Headcount 1200+ 600+No

headcountNo

headcount

ClosingEIB

CompositeETB

CompositeELIB Non Insurance

EGTB Non Takaful

1-Jan-18

Opening EGIB EFTB ELIB EGTB

Insurance / Takaful License

General Insurance

Family LifeGeneral Takaful

Paid up RM169.8m RM400m RM100m RM870m

Shareholder Y Y Y Y

Life / FamilyTransferred to

ELIBY Y N

General YTransferred to

EGTBN Y

Headcount 300+ 400+ 800+ 100+

SUMMARY OF TRANSITION TO 1-JAN-18

28

We became 4 in 2018

MOVING FORWARD

Fastest growing

Insurance Company

across all 4 entities YTD

2018

#1 General Takaful

operator in Malaysia

#1 Bancassurance

company in Malaysia

#1 Online Insurer in

Malaysia

#1 Local Insurer in

Malaysia

ACHIEVEMENTS AMBITIONS

ETIQA

Providing Advice

that puts the

Customer’s

Interest First

Creating a Fast &

Easy Customer

Experience

Driving

Technology

across the

Organisation

Keep only our

Highly Effective

People

What we want to become in the future

30

Preferred Partner to

Banks

#2 Family Takaful

Operator

Mid tier Insurance

Agency

Towards RM1bn

E-channel sales

Deliver new solutions

within “2 weeks”

More Profitable General segments – (Fire & PA)

Growing Long Term Sustainable Value in Life/Family – (Regular Premium) MEDIUM TERM FOCUS

THE END

APPENDIX

100% Etiqa Life Insurance Berhad

(ELIB)

100% Etiqa General Insurance Berhad

(EGIB)

100% Etiqa Family Takaful Berhad

(EFTB)

100% Etiqa General Takaful Berhad

(EGTB)

100% Etiqa Insurance Pte Ltd (EIPL

Singapore)

ETIQA INTERNATIONAL HOLDINGS SDN BHD (EIHSB) AGEAS INSURANCE

INTERNATIONAL

MAYBANK AGEAS HOLDINGS BERHAD

100%

30.95% 69.05%

68.31%

ASIANLIFE & GENERAL ASSURANCE CORP.

MATRKECP

28.36%

Brand name was launched in

November 2007

DISTRIBUTION

• Etiqa offers all types of Insurance and

Takaful plans through multi-channel

distribution

Bancassurance

Agents

Direct Retail Distribution

Direct Marketing

Enterprise Corporate

Regional Distribution

E-Channel

OPERATING ENTITIES

PT ASURANSI ASOKA MAS (ASOKA)

PT TRANSPACIFIC MUTUALCAPITA

25.0%

75.0%

Group Insurance & Takaful Structure

33

The Leading ASEAN Insurance and Takaful Provider

Our focus is to grow the business in ASEAN Countries, leveraging on the high growth prospect and the Group’s strong

base in the region.

WHY ASEAN

High growth region

Maybank Group has strong base

High population

Stable and growing financial

industry

Established political situation

and friendly regulation

PREFERRED CHANNELS

Bancassurance

Online

Direct Marketing

3

1 TARGET COUNTRIES

Singapore

• Established Etiqa Insurance Ptd Ltd. (“EIPL”) a dual licensed insurance company (Life

and Non-Life).

• Expanded into Life segment and transferred the existing Non-Life Business into EIPL.

Philippines

• Ventured into Life & Non-Life Insurance via controlling stake of 68.3% in AsianLife

General Assurance (“ALGA”), a composite insurance company.

Indonesia

• Ventured into Non-Life Insurance segment via acquisition of 75% stake in PT Asuransi

Asoka Mas (“Asoka”). The plan is to establish bancassurance business with Maybank

Indonesia Group by tapping on its vast distribution network.

• Explore the potential to venture into Non-Life Shariah and Life Segment

2

COMPLETED

NON-LIFE: COMPLETED

COMPLETED

34

GROSS PREMIUM

By Line of Business

1H2018 against 1H2017

GROSS PREMIUM

By Channel

1H2018 against 1H2017

LIFE/FAMILY BUSINESS MIX

1H2018 against 1H2017GENERAL BUSINESS MIX

1H2018 against 1H2017

We Are A Diversified Entity

35

Conventional:

56.9%

(2016: 55.9%)

Takaful: 43.1%

(2016: 44.1%)

GROSS PREMIUM

By Line of Business

FY2017 against FY2016

GROSS PREMIUM

By Channel

FY2017 against FY2016

LIFE/FAMILY BUSINESS MIX

FY2017 against FY2016

GENERAL BUSINESS MIX

FY2017 against FY2016

A balanced portfolio for each segment

36

Note: Gross Premium, Profit Before Tax and Total Assets are presented at EIHSB level

Our Top Line and Market Share

37