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Leadership in life insurance

May 2014

22

Industry overview and outlook

Performance update

Our strategy

Agenda

3

Agenda

3


Performance update

Our strategy

Total premium (` bn)

Penetration (as a % to

GDP)

New business premium1

(` bn)

Number of players

Insurance premium per

capita (`)

FY2013

24

470

2,872

~2,235

FY2002

12

116

501

~2.1%

~460

28.7%

26.1%

Source: IRDA, Life insurance council, Company estimates

India life insurance growth story

Asset under

management (` bn)

~17,687~2,30424.3%

1. Retail weighted premium

FY2008

18

527

2,014

~1,680

~8,477

-2.2%

7.4%

15.8%

4

~4.0% ~2.8%

Source: UN Population division‘s release: ‘World Population Prospects-

The 2012 Revision’

Fuelled by favourable demographics..

Increase in target population with rising income levels

Population of age > 25 years (in mn)

5

613

755

888

-

100

200

300

400

500

600

700

800

900

1,000

2010 2020E 2030E

..High household savings

Financial year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Financial savings

/GDP10.5% 10.0% 11.0% 10.1% 11.9% 11.3% 11.6% 10.1% 12.0% 9.9% 7.0% 7.1%

Household

savings / GDP23.2% 22.3% 23.2% 23.6% 23.5% 23.2% 22.4% 23.6% 25.2% 23.1% 22.8% 21.9%

Source: RBI, CSO

6

2.98 3.11 3.44 4.36 4.31

5.10 5.38

7.60 8.56

10.26

14.23 14.95

2.47 2.53 3.13

3.28 4.38

4.84 5.80

5.71

7.75

7.74

6.32

7.17

0

5

10

15

20

25

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

` trillio

n

Physical savings Financial saving

Share of life insurance in financial savings

Distribution of financial assets

14.4%16.4%

Source: RBI

7

Insurance market size

Significant opportunity at current savings rate

Household savings

Insurance

FY

2008

1.70

Gross financial

savings

Nominal GDP

FY

2020E*

4.78

59.51

29.18

269.15

FY

2002

0.41

23.48

15%

CAGR

49.87

5.45

2.86

11.18

7.72

FY

2013

1.80

101.13

22.12

10.97

27%

CAGR

13%

CAGR

13%

CAGR

18%

CAGR

1%

CAGR

15%

CAGR

15%

CAGR

7%

CAGR

Amounts in ` trillion

15%

CAGR

15%

CAGR

15%

CAGR

Source: RBI, CSO

*Company estimates8

Industry: New business premium1

1. Retail weighted new business premium

Source : IRDA

`b

n

9

Growth FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

Private 1.1% 7.1% -20.0% -23.9% 1.9% -3.4%

LIC -22.2% 29.3% 4.3% 11.2% -4.1% -3.4%

Industry -10.4% 16.7% -8.5% -4.8% -1.9% -3.4%

57.0%

52.3%

45.7%

36.5%

38.0%

38.0%

0%

10%

20%

30%

40%

50%

60%

0

50

100

150

200

250

300

350

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

LIC Private Private market share

Channel mix1

Industry

1. Individual new business premium basis

Source: IRDA , Public disclosures

Private players

10

51%47%

44%40% 41%

25% 33% 39%43% 42%

24%20%

17% 17% 17%

FY2010 FY2011 FY2012 FY2013 9M-FY2014

Agency Banca Others

80% 79% 79% 78% 80%

11% 13% 15% 16%14%

10% 8% 6% 6% 6%

FY2010 FY2011 FY2012 FY2013 9M-FY2014

Agency Banca Others

Product mix1

Industry Private players

1. New business premium basis

Source: IRDA, Life insurance council 11

17%

31%

59%

65%

72%

83%

69%

41%

35%

28%

FY 2010 FY 2011 FY 2012 FY 2013 9m-FY2014

Traditional ULIP

45%

58%

85%90%

94%

55%

42%

15%10%

6%

FY 2010 FY 2011 FY 2012 FY 2013 9M-FY2014

Traditional ULIP

Agenda


Performance update

Our strategy

12

Profit after tax

Solvency ratio (%)

Assets under management

Retail new business premium 34.20

Retail renewal premium

Group premium

Total premium

Retail weighted received premium

APE

New Business Profit (NBP)1

34.32

80.55 81.00

20.63 8.97

135.38 124.29

33.10 32.53

35.32 34.44

5.29 4.27

14.96 15.67

396 372

741.64 805.97

FY2014FY2013` bn

1. Traditional Embedded Value basis, on medium term expense targets,

post-tax basis

Performance snapshot

13

14

Agenda

14


Performance update

Our strategy

Key strategic objective: Profitable growth

Enhance market leadership

Provide superior value proposition to customers

Strengthen multichannel distribution architecture

Improve cost efficiency

Improve persistency and control surrenders

Target superior risk adjusted fund performance

15

Robust risk management and control framework

Consistent leadership1

1

3

4

5

2

FY2010FY2006 FY2012

6

FY2013

1. Retail weighted received premium (RWRP) basis

16

FY2002 FY2008 FY2014

Market share1

17


7.3%

5.9%

7.0% 7.2%

16.0% 16.1%

18.5%18.9%

0%

5%

10%

15%

20%

25%

FY2011 FY2012 FY2013 FY2014

Total Private

Product mix1


Balanced mix to cater to all customer segments

18

12.5%

38.4%

45.5%

33.5%

87.5%

61.6%

54.5%

66.5%

0%

50%

100%

FY2011 FY2012 FY2013 FY2014

Ulip

Traditional

Distribution mix1

Multi channel distribution architecture to optimize reach and efficiency

19


55.4%

45.3%

35.4%29.0%

21.4%37.6%

44.9%54.6%

16.4%10.3% 13.1% 9.6%

6.7% 6.7% 6.5% 6.8%

0%

50%

100%

FY2011 FY2012 FY2013 FY2014

Agency Banca CABR Others

Cost efficiency

Cost: All insurance expenses including commission

Expense ratio: All insurance expenses (excl. commission) / (Total premium – 90% of single premium)

Commission ratio: Commissions / (Total premium – 90% of single premium)

Total Expense ratio: All insurance expenses (incl. commission) / (Total premium – 90% of single premium)

20

Ratios FY2011 FY2012 FY2013 FY2014

Cost to RWRP 69.2% 84.8% 75.4% 69.3%

Expense ratio (excl. commission) 12.5% 13.4% 13.3% 13.6%

Commission ratio 3.5% 4.6% 5.9% 5.2%

Total expense ratio 16.0% 17.9% 19.2% 18.8%

24.96

19.8917.83 17.31 16.28

5.61

6.05 7.65

6.27

0

5

10

15

20

25

30

FY2011 FY2012 FY2013 FY2014

` b

n

Expenses

Commission

Non-Commission

25.50

22.55

23.88

Customer retention

13th

month persistency

1. Average monthly retail surrenders

Surrenders1 as % of average AUM

21

75.8%77.0%

71.4% 71.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

FY2011 FY2012 FY2013 FY2014

1.3%

0.9%

1.3%

1.1%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

FY2011 FY2012 FY2013 FY2014

Customer service

80.2% of the new business applications initiated

using the digital platform

41.6% of renewal premium payment through

electronic modes

70.0% of all service transactions processed through

website and IVRS

90.5% of payouts through electronic mode

Grievance ratio1

stood at 253

Claims settlement ratio2

for FY2014: 94.1%

Average claim settlement time3

was 6 days

1. Grievance ratio: grievances per 10,000 polices

2. Claims ratio: No of claims settled/ no of claims intimated

3. Time for non investigation cases22

707.71

2323

Assets under management

Among the largest domestic fund managers

805.97

741.64

248.25 308.81

364.10 423.70

433.25

398.90

377.54

382.26

0

100

200

300

400

500

600

700

800

900

FY2011 FY2012 FY2013 FY2014

Debt Equity

681.50

Fund performance

Inception Dates:

Preserver Fund: June 28, 2004 Protector Fund: April 2, 2002

Balancer Fund : April 2, 2002 Maximiser Fund: Nov 19, 2001

97% of the funds have outperformed benchmark since inception*

* As on March 31, 2014

Fund performance since inception*

24

6.8%6.1%

10.2%

16.3%

8.1%

7.1%

11.8%

19.0%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Preserver Protector Balancer Maximiser

Benchmark Fund

25

Safe harbor

Except for the historical information contained herein, statements in this release

which contain words or phrases such as 'will', 'would', ‘indicating’, ‘expected to’

etc., and similar expressions or variations of such expressions may constitute

'forward-looking statements'. These forward-looking statements involve a number

of risks, uncertainties and other factors that could cause actual results to differ

materially from those suggested by the forward-looking statements. These risks

and uncertainties include, but are not limited to our ability to successfully

implement our strategy, our growth and expansion in business, the impact of any

acquisitions, technological implementation and changes, the actual growth in

demand for insurance products and services, investment income, cash flow

projections, our exposure to market risks, policies and actions of regulatory

authorities; impact of competition; experience with regard to mortality and

morbidity trends, lapse rates and policy renewal rates; the impact of changes in

capital , solvency or accounting standards , tax and other legislations and

regulations in the jurisdictions as well as other risks detailed in the reports filed by

ICICI Bank Limited, our holding company, with the United States Securities and

Exchange Commission. ICICI Bank and we undertake no obligation to update

forward-looking statements to reflect events or circumstances after the date

thereof.

Thank you

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