ICICI Prudential Life: Investor Presentation for quarter ended December 31,2020

Performance update: 9M-FY2021

January 27, 2021

Agenda

• Company strategy and performance
• Opportunity
• Industry overview

Risk management

High quality assets

• 96.5% of fixed income in sovereign or AAA; 0.6% of fixed income below AA
• Zero NPA since inception

Insurance risks

• Mortality experience (including Covid-19 claims) in line with provisions; additional reserve held for potential Covid-19 claims
• Other parameters in line with assumptions

Liability profile

• 83% of liabilities largely pass on the market performance to customers
• Non par guaranteed return book: 0.7% of liabilities

Strong solvency ratio

• Solvency ratio of 226% at December 31, 2020

3

Agenda

• Company strategy and performance
• Opportunity
• Industry overview

Key strategic elements

Protection

Customer

centricity	Premium	VNB Growth	Persistency
continues to be	Growth
at the core

Productivity

Aspiration to

double the

FY2019 VNB in

3 - 4 years

5

Strategic elements (1/4)		• 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
	` billion	FY2020	Q1-	Q2-	Q3-	9M-
	FY2021	FY2021	FY2021	FY2021
	New business premium (NBP)1	123.48	14.99	29.57	34.43	78.99
	YoY growth	20.4%	(32.6%)	1.1%	14.0%	(3.3%)
	APE2	73.81	8.23	14.65	16.66	39.54
	YoY growth		(44.0%)	(22.9%)	(18.3%)	(26.9%)
	Linked		(62.2%)	(41.5%)	(38.8%)	(48.6%)
	Non-linked (savings)		14.2%	45.2%	36.2%	35.0%

14% growth in NBP for Q3-FY2021;non-linked savings APE grew 36% year on year

1. Received premium for retail and group
2. Annualized premium equivalent

6

Strategic elements (2/4)	Protection	Continue to grow both retail and group lines of
	Focus	business

` billion	FY2020	9M-FY2021
Protection APE	11.16	7.03
Protection mix	15.1%	17.8%
New business sum assured market share	11.8%	13.0%

• Private market leader based on new business sum assured
• • Market share increased from 12.5% in H1-FY2021 to 13.0% in 9M-FY2021
• New business sum assured grew by 22% in Q3-FY2021
• • 2.1% year on year growth for 9M-FY2021

7

Strategic elements (3/4)	Persistency Improve persistency across all cohorts

Persistency1	11M-FY2020	2M-FY2021	8M-FY2021	vs 2M-FY2021
13th month	83.2%	81.8%	82.7%	90 bps
61st month	56.0%	56.8%	58.0%	120 bps
` billion	9M-FY2020	FY2020	9M-FY2021	Y-o-Y
Retail surrender	87.30	121.31	81.27	(6.9%)
(linked)

Strong sequential improvement in persistency

1. Retail excluding SP computed as per IRDAI circular dated January 23, 2014

8

Strategic elements (4/4)	Productivity	Continue to leverage technology for process re-
	engineering and to drive productivity

` billion	9M-FY2020	FY2020	9M-FY2021
Cost/TWRP1	16.6%	15.9%	14.6%
Cost/TWRP
11.1%	10.4%	9.3%
(savings LOB)

Significant improvement in cost ratios

1. Total cost including commission/(Total premium- 90% of single premium)

9

Value of New Business

` billion	9M-	FY2020	Q1-	Q2-	Q3-	9M-
FY2020	FY2021	FY2021	FY2021	FY2021
APE	54.07	73.81	8.23	14.65	16.66	39.54
Value of New
11.35	16.05	2.01	4.01	4.28	10.30
Business (VNB)1
VNB growth	24.7%	20.9%	(35.0%)	0.2%	0.5%	(9.3%)
APE growth	1.2%	(5.4%)	(44.0%)	(22.9%)	(18.3%)	(26.9%)

VNB margin increased from 21.0% in 9M-FY2020 to 26.0% in 9M-FY2021

1. For full year, based on actual cost; 9M: based on management forecast of full year cost

10

Key strategic elements

Protection

Customer

centricity	Premium	VNB Growth	Persistency
continues to be	Growth
at the core

Productivity

Aspiration to

double the

FY2019 VNB in

3 - 4 years

11

4P: Premium

Products available across all categories

						Savings		Linked
	Non-linked
	Participating with			Savings with				ULIP: Suite of funds			ULIP: with capital
	equity			guarantee;				for Equity and Debt			guarantee
				Annuity

Retail			Protection		Group
Pure term with
		Critical illness,			Pure term, Micro insurance, Credit insurance,
accident cover			Disease specific			Critical illness

13

Risk management: Non-participating savings

• Expanded product tenure from a maximum of 15 years to ~20 years

• Interest risk hedged through a

combination of cash market instruments
and derivatives		years
• Hedge program designed for each
term	> 15
tranche of new business
• Locked in yields for future premiums	Policy
• Underlying bonds for derivatives	years
selected keeping in mind liability
	15
tenure		<=

• Regular review and repricing based on prevailing interest rates

GIFT: Guaranteed Income For Tomorrow

ASIP: Assured Savings Insurance Plan

Lump sum	Income

GIFT

ASIP

14

Product segments (1/2)

• 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

	APE (` billion)			Growth (%)
Savings segment	Q1-FY2021Q2-FY2021	Q3-FY2021	Q-o-Q	Y-o-Y
Linked	3.59	7.01	8.46	20.7%	(38.8%)
Non-linked	2.01	4.40	4.85	10.2%	36.2%
Group	0.49	0.91	0.78	(14.3%)	143.8%
Total savings APE	6.09	12.32	14.09	14.4%	(20.4%)

Sequential momentum with 14% growth, higher growth than overall market

Total may not add up due to rounding off

15

Product segments (2/2)

• 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

	APE (` billion)		Mix
Segments	FY2020		9M-FY2021	FY2020		9M-FY2021
Savings	62.65		32.51	84.9%		82.2%
Linked	47.72		19.05	64.7%		48.2%
Non-linked	12.46		11.28	16.9%		28.5%
Group	2.47		2.18	3.3%		5.5%
Protection1	11.16		7.03	15.1%		17.8%
Total APE	73.81		39.54	100.0%		100.0%

Diversified product mix: 48% linked, 29% non-linked savings and 18% protection

1. Protection includes retail and group protection products Total may not add up due to rounding off

16

Diversified distribution

Strategy: Build profitability

• 22 bank partnerships
• Protection and Annuity mix further increased from 10% in FY2020 to 16% in 9M-FY2021

Strategy: Invest and grow

•	13,179 agents recruited
	during 9M-FY2021
•	Diversified product mix:	Agency
	Savings: linked 32%
	savings: non-linked59%
	and Protection 9%

Strategy: Create depth and add width

• >600 partnerships
• Protection and non-linked savings: ~87% in 9M-FY2021

Partnership

Distribution

Distribution

Strategy: Digital focused upsell campaigns

• Analytics driven upsell channel
• Diversified product mix with 12% protection and 32% non-linked savings

Strategy: Partner with non- traditional distributors

ecoEmerging systems	•	Tie-up with small finance
		banks, wallets, payment
		banks, aggregators etc.
	•	Product customization

During the quarter, distribution tie-ups with RBL Bank, AU Small Finance Bank and PhonePe

Figures mentioned are for 9M-FY2021
* Direct comprises sales through own website and employees on roll	17

Distribution expansion

Bancassurance relationships added during the year

	Branches	Customers (mn)	Quarter
IDFC First Bank	523	10.0	Q1
IndusInd Bank	1,910	25.0	Q2
NSDL PB1	1	0.1	Q2
RBL Bank	398	8.5	Q3
AU SFB	686	1.7	Q3

Capacity creation in 9M-FY2021:

• 83 new partnerships; includes non-conventional partnerships such as PhonePe and BSE Ebix insurance broking
• 13,179 new agents

Banca customer base

162 mn

116 mn

Banca branch network

12,038

8,573

1. NSDL customer base: 20.7 mn PB: Payments Bank

SFB: Small Finance Bank	18

Distribution channels (1/2)		• 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
		APE (` billion)					Growth (%)
	Channels	Q1-FY2021	Q2-FY2021	Q3-FY2021		Q-o-Q
	Bancassurance	3.26		6.42	6.98		8.7%
	Agency	2.03		3.32	4.18		25.9%
	Direct	1.01		1.78	2.21		24.2%
	Partnership	0.71		1.26	1.28		1.6%
	distribution
	Group	1.23		1.86	2.01		8.1%
	Total APE	8.23		14.65	16.66		13.7%

Sequential momentum across channels

Total may not add up due to rounding off

19

Distribution channels (2/2)		• 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
		APE (` billion)			Mix (%)
	Channels	FY2020	9M-FY2021	FY2020		9M-FY2021
	Bancassurance	37.48		16.66	50.8%		42.1%
	Agency	15.62		9.53	21.2%		24.1%
	Direct	9.31		4.99	12.6%		12.6%
	Partnership
	5.46		3.25	7.4%		8.2%
	distribution
	Group	5.94		5.10	8.1%		12.9%
	Total APE	73.81		39.54	100.0%		100.0%

Further diversification across distribution channels

Total may not add up due to rounding off

20

4P: Protection

Protection business

Protection	Continue to grow both retail and group lines
growth	of business

APE (` billion)

11.16
		7.03
	4.46
FY2020	H1-FY2021	9M-FY2021

Sum assured market share1

		13.0%
	12.5%
11.8%
FY2020	H1-FY2021	9M-FY2021

Strong growth in group term and credit life in Q3-FY2021; retail continues to dominate mix

1. New business

Total may not add up due to rounding off

22

4P: Persistency

Persistency

Retail excluding single premium

Retail including single premium

Month	11M-FY2020	8M-FY2021
13th month	83.2%	82.7%
25th month	75.1%	72.7%
37th month	66.7%	65.1%
49th month	64.6%	63.3%
61st month	56.0%	58.0%

Month	11M-FY2020	8M-FY2021
13th month	85.3%	85.0%
25th month	77.4%	75.9%
37th month	69.0%	67.8%
49th month	66.4%	65.9%
61st month	57.4%	59.6%

Significant recovery in 13th month persistency ratio

As per IRDAI circular dated January 23, 2014

24

4P: Productivity

Productivity: Cost efficiency

				9M-FY2020	FY2020		9M-FY2021
Expense ratio (excl. commission)1		10.9%	10.3%		9.7%
Commission ratio2		5.8%	5.7%		4.9%
Cost/TWRP3		16.6%	15.9%		14.6%
Cost/Average AUM4		2.6%	2.9%		2.1%
Cost/TWRP (Savings LOB)		11.1%		10.4%		9.3%
		` billion				44.71
			32.82				28.04
						28.85
		Commission
			21.39				18.61
		Non Commission
			11.43		15.86		9.43
				9M-FY2020	FY2020	9M-FY2021

• 96.5% of new business applications initiated via digital platform
• 90.4% of service requests through self service modules
• 1. Expense ratio: All insurance expenses (excl. commission)/(Total premium- 90% of single premium)
  2. Commission ratio: Commission/(Total premium- 90% of single premium)
  3. Cost/(Total premium- 90% of single premium)

4. Annualized cost/Average assets under management during the period	26
Total may not add up due to rounding off

Key technology initiatives: Q3-FY2021

Personalised video product brochure

Video

verification in

vernacular

language

Rapid

application

development

• Personalised video link along with e-welcome kit
• • Policy details and product features are explained through audio visual mode
• To service regional/remote customers, we have enabled 11 languages for Pre Issuance Video Verification (PIVV)
• Drag-and-dropinterface to create custom business applications in days rather than weeks
• • Three web applications taken live

27

VNB growth levers update (4P's)

` billion	FY2020	9M-FY2021	Growth
Value of New Business (VNB)1	16.05	10.30	(9.3%)
VNB margin	21.7%	26.0%

` billion	FY2020	9M-FY2021	Growth
Premium growth (APE)	73.81	39.54	(26.9%)
Protection growth (APE)	11.16	7.03	(8.0%)
Persistency (13th month)2	83.2%3	82.7%
Persistency (61st month)2	56.0%3	58.0%
Productivity (Cost/TWRP: Savings)4	10.4%	9.3%

1. For full year, based on actual cost; 9M: based on management forecast of full year cost
2. Retail excluding SP computed as per IRDA circular dated January 23, 2014
3. 11M-FY2020

4. Total Cost including commission / (Total premium - 90% of single premium)	28

Financial update

Financial metrics

` billion	9M-FY2020	FY2020	9M-FY2021
Profit before Tax	8.97	10.69	9.68
Policyholder (underwriting	4.26	4.92	5.28
profits)
Shareholder	4.71	5.77	4.40
Profit after Tax	8.89	10.69	8.96
Solvency ratio	207%	194%	226%
AUM	1,719.531	1,529.682	2,048.721

• 24% year on year growth in underwriting profits

• 34% growth in AUM over March 31, 2020

1. At December 31 of respective years

2. At March 31, 2020

Components may not add up to the totals due to rounding off	30

Mortality experience including Covid-19 claims

Covid-19 claims pattern

Based on Date of Death

Based on Date of Intimation

Apr-20May-20Jun-20Jul-20Aug-20Sep-20Oct-20Nov-20Dec-20

• Deaths on account of Covid-19 appear to have peaked out
• Total claims on account of Covid-19 for 9M-FY2021 was ` 3.44 billion
  • Claims net of reinsurance was ` 1.54 billion
• Claims during 9M-FY2021 including Covid-19 claims in line with liability provisions
• Additional provision of ~ ` 1 billion towards Covid-19, not utilised so far

31

Embedded Value (EV)1

• billion

		257.11
216.23	226.80	230.30
		87.88
73.54	77.31	78.43

142.69	149.49	151.87	169.23

Mar-19		Sep-19		Mar-20	Sep-20
		Value of Inforce (VIF)		Adjusted net worth (ANW)

EV grew by ` 26.81 billion during half year, against full year FY2020 growth of ` 14.07 billion

1. As per Indian Embedded value (IEV) method

32

Analysis of movement in EV1

` billion	FY2016	FY2017	FY2018	FY2019	FY2020
Opening EV	137.212	139.39	161.84	187.88	216.23
Unwind	12.58	12.21	13.72	15.84	17.25
Value of New Business (VNB)	4.12	6.66	12.86	13.28	16.05
Operating assumption changes	1.042	1.00	7.64	4.20	(2.25)3
Operating variance	4.48	3.08	2.58	4.69	1.83
Persistency variance	2.01	0.99	1.53	2.66	0.85
Mortality and morbidity variance	0.79	0.98	0.78	1.97	0.42
Expense variance	0.59	0.35	0.27	0.04	0.01
Other variance	1.09	0.76	0.00	0.02	0.56

EVOP

Return on embedded value (ROEV)

Economic assumption change and investment variance

Net capital injection

Closing EV

22.23	22.95	36.80	38.01	32.88
16.2%	16.5%	22.7%	20.2%	15.2%
(5.64)	5.82	1.13	(1.22)	(14.76)
(14.41)	(6.32)	(11.88)	(8.43)	(4.05)
139.39	161.84	187.88	216.23	230.30

1. As per Indian Embedded Value (IEV) method
2. Difference of FY2015 closing EV & FY2016 opening EV shown as operating assumption change

3. Negative impact of ` 5.49 billion due to change in effective tax rate	33
Components may not add up to the totals due to rounding off

Sensitivity analysis

Scenario	% change in VNB	% change in EV
	FY2019	FY2020	FY2019	FY2020
Increase in 100 bps in the reference rates	(4.3)	(2.4)	(2.0)	(2.5)
Decrease in 100 bps in the reference rates	4.4	2.2	2.0	2.6
10% increase in the discontinuance rates	(8.5)	(5.0)	(1.3)	(1.1)
10% decrease in the discontinuance rates	8.9	5.1	1.4	1.1
10% increase in mortality/morbidity rates	(9.4)	(9.5)	(1.4)	(1.6)
10% decrease in mortality/morbidity rates	9.4	9.6	1.4	1.7
10% increase in acquisition expenses	(13.0)	(11.6)	Nil	Nil
10% decrease in acquisition expenses	13.0	11.6	Nil	Nil
10% increase in maintenance expenses	(3.6)	(3.0)	(0.9)	(0.8)
10% decrease in maintenance expenses	3.6	3.0	0.9	0.9
Tax rates increased to 25%	(7.5)	(11.4)	(4.0)	(5.8)
10% increase in equity values	NA	0.7	NA	1.8
10% decrease in equity values	NA	(0.7)	NA	(1.8)

34

Technology initiatives

Objectives

To be the most admired digitally enabled insurer

• Empower customers and distributors with simplified journeys and choice of platforms
• Decongest processes by leveraging ecosystems and emerging technologies
• Enable servicing anytime, anywhere
• Drive adoption through superior experience
• Establish industry leading benchmarks

Strengthen the		Be future ready		Support new
core			growth engines

36

Digital evolution path to maturity

2011-2013	2013-2015
1	2
Build digital foundation	Digitize onboarding and service
Optimize processes	Build seamless presentation
and systems	layer

2015-2018

3

Leverage ecosystem

Collaborate with internal stakeholders

And partners for enhancing experience and productivity

2018-2021

4

Market leadership

IT as an enabler for Business innovation

•	Process re-		•	Process
		automation
	engineering
•	Technology		•	Build seamless
		presentation
	architecture			layer
•	Service		•	Integration
	architecture
			architecture

•	Integrate internal,		•	Seamless AI, ML,
	Partner systems			NLP interventions
	and external			in the journey
	ecosystems		•	Enhance
•	Provide frictionless			experience and
	journey			productivity

End to end digitalization of journeys

Leverage ecosystems and tech advancements

AI : Artificial Intelligence| ML : Machine Learning

NLP : Natural Language Processing

37

Presales enablers

Knowledge repository

On-the-go

e-learning modules

via exclusive Learners'

Box app

Opportunity

Matrix

Upsell triggers to approach existing customers once again for service requirement

My

Coach

AI based platform for video based library creation for sales pitches

Lead

Management

System

Robust LMS enhanced with voice capability and geographical tagging

Collaboration

platforms

Online meetings, joint

sales calls, invite

experts, share content

Customer

profiler

Know customer better through information available on social media platforms

Suitability

analysis

Product

recommendations based on life stage, goal risk appetite

Cognitive

Bots

24x7 query resolution

using chat bots viz.

Chat Buddy, PSF Guru,

Tara

38

Onboarding & issuance enablers

Flexible

on-boarding

Platform agnostic and

paperless journey

available for all

channels

Application

tracker

A tool to track

application status, pending documents, pending medicals etc.

Integration

and data pre-filled

Pre-filled data for existing ICICI Pru customers, Bank customers, PAN verification

Smart Doc

Upload App

Upload KYC and other requisite documents conveniently

PASA

No medical or income

document

requirement for

smoother onboarding

RPA enabled

issuance

Robotic processing of applications for faster issuance

Instant Optical

Character Reader

Real time

identification,

segregation and

verification of KYC

documents

Tele/video

underwriting

Improves efficiency and reduces issuance turn around time

PASA : Pre Approved Sum Assured | KYC : Know Your Customer

RPA : Robotic processing automation

39

Service enablers

Anytime..	Flexible
premium
..Anywhere
payment
Exhaustive self-help	All popular electronic
modes of payments
options for customers
available for
Omni channel
contactless payment
experience
fulfilment
Annuity	LiGo
service	(Service Bot)
Simplifying journey	Chatbot for all
for Annuity customers	customers service
with digital life	requirements with
verification	24x7 availability

Intuitive and

Visual IVR

Helps customers

avoid IVR queues and

saves

50% of the navigation

time

WhatsApp

for servicing

First life insurer to get

business verified

account for statements

and receipts

Customer

app

Exclusive customer service native app with in-app nudges/notifications

Humanoid

AI based

conversational tool for

renewal premium reminder calling

40

Marketing & lead generation

Search engine

optimization

Use of Machine

learning to rank ICICI

Pru higher on

customers search

Selfie

quotes

AI backed quotes

based on facial

recognition tools

Segmented

targeting

Reaching the

customer by mapping

their

interests/affinities

Truecaller integration

To facilitate automatic application form filling

Mobile

first

All our content and

journeys are designed

for mobile devices

Interactive

banners

Banners with built-in calculators for instant and customized quotes

Hyper

personalization

Personalized messages to handhold customers throughout journey

Co-browsing

Instant screen share facility for assisting application form filling

41

Partner integration

Process

simplification

Faster onboarding for superior experience

Easy UI

(User Interface)

AI backed quotes based on

facial recognition tools

Flexible

integration

Modular integration

approach to meet partner

requirements

Customer service on partner portal

Enabling customer service

requests closures on

partner portals

Partner

portal

For policy details, MIS,

Certificate of Insurance etc.

42

Analytics

Actionable

insights

Transform information

architecture from a

backend driven to a self-

service mode

Google Big Query,

Hadoop, Python

AI backed quotes based on

facial recognition tools

Data

modelling

Modular integration

approach to meet partner

requirements

Data lake

solution

Use of AI and ML to

analyze structured and

unstructured data

Smart

solutions

Pre-approved best offers to

customer for instant issuance and better persistency

43

Collaboration with customers for presales & onboarding

Share screen for

• Suitability analysis
• Quote generation
• Completing the onboarding journey

Customer, financial consultant and expert added on same call

UPI/BBPS, Credit card, Debit card, Netbanking, eWallet options available

Share documents and chat with customer. Customers can also upload KYC documents/photo

Online meetings (upto 250 users) | Video/Audio call | Joint sales call | Share content Chat | Invite external guests, experts | Access previous meeting notes | Record sessions

44

Collaboration with customers for servicing requirements

Pay renewal premium

Tax certificate

Set auto debit mandate

WhatsApp for requesting policy related statements

Switch funds

Policy/unit statement

Service assistant chatbot LiGo for service resolution

• An easy access to a variety of self-service options
• Service requirements met from the comfort of customers' homes

45

Addressing stakeholders' concerns

I want to have a life cover but

am wary of meeting someone face to face

Live video chat

Customers are unwilling to meet face to face, how can I still interact with them?

Collaboration platform

As a manager, how do I ensure safety of my team members in the current COVID-19 scenario?

Contactless meetings

Will my life insurance policy

cover me against

coronavirus?

Product feature

Will I be able to service my

customers during this COVID-19 scenario?

Online service options

How do I train my team members on the new products and coronavirus related advisories?

Learning videos

How do I know fund value of my ULIP plan & pay renewal premium of my policy?

Self-service options

Will my business earnings

be affected due to the prevailing lockdown conditions?

Digital selling options

Due to restricted travel, how do I communicate with my team and conduct joint field work?

Live video meets & chats

How do I file a life insurance

claim?

Online claim intimation

With the current travel

restrictions how do I keep

myself updated on the

processes?

e-Learning modules

How do I track efficiency of

my team members and service my customers in the lockdown scenario?

Real time service support

46

ESG

Environmental

Environmental

Social

Social

Governance

Governance

Environmental initiatives

Preserving 'Mother Earth' for future generations

Replace

• End to end digital solutions for our business activities
• 84% shareholders communicated digitally
• Video conferencing facility at 94 locations
• Live plants to improve air quality: ~31% office space

Reduce

• 3/5 star rated ACs in all offices
• VRF AC systems (20% of usage)
• LED technology: 54% of branch lighting, 47% of backlit signage
• Managed print services & stationery tracking
• Food wastage awareness drive
• Sensor based taps & urinals
• Periodic office equipment maintenance

Reuse & Recycle

• Sewage treatment plant and wet waste conversion into manure at head office
• No single use plastic
• E-wastedisposal through government certified vendors
• Reusable glasses & plates

VRF: Variable Refrigerant Flow

48

Social initiatives

Building communities and giving back to society

Business itself is social in nature: Serving long term financial and protection needs of the society

Customer centricity		Commitment to employees		Community service

• Products across life stage needs; multi- channel reach
• Digital enablers provide 24x7 service; 87% self-help usage
• Consistent risk-adjusted returns
• Grievance redressal policy
• 13th month persistency: 85.3%
• COVID-19:Un-interrupted service including claims

• Gender neutrality, equal opportunity, POSH policy
• Supportive policies including women centric, Whistleblower
• Learning & growth programs at all levels
• 85% of SMT served >10 yrs
• Responsible behavior: Privacy, Anti-corruption
• ~100% WFH during COVID19

• 3.9 mn lives insured from rural /social sector and PMJJBY5
• ICICI Academy for Skills: Trained 25,000 youth (145,400 till date)
• Rural livelihood training:76,400 youth (275,200 till date)
• Much needed long term capital for infrastructure and housing
• COVID-19:Provision of ventilators and consumables

POSH : Prevention of sexual harassment to women at workplace;
SMT: Senior management team; WFH: Work from home
PMJJBY: Pradhan Mantri Jeevan Jyoti Beema Yojana	49

Governance

Transparency in functioning with separation of supervision from execution

Awarded for Corporate Governance; scorecard by IFC, BSE limited and IiAS

01	Supervisory structure	02	Compliance, Risk & IA	03	Ethical practices
	Diverse Board composition	•	Quarterly compliance	•	Framework for managing
• 50% IDs including Chairman		certificate to the Board		Conflict of Interest
	Risk policy: Investment,
•	Board committees comprise	•	• Guidelines for Acceptance of
	majority of IDs/ NEDs; and		Insurance & Operational risk		Gifts, Entertainment and
	chaired by IDs	•	Risk-based IA framework		Sponsored travels
•	Evaluation framework for	•	WTDs' compensation aligned	•	Policies on Anti-Money
	Directors, Chairman, Board		to KPI; includes malus &		Laundering, Anti Bribery/
	and its Committees		claw-back		Corruption, Privacy policy,
• Policy on Board diversity &	•	ISO 22301:2012 certification		Whistleblowing
•	Stewardship Code
	criteria on appointment of		for the BCM
	Directors; regulatory norms	•	Investment policy for
	on "Fit and proper"
		governance & operations

IDs: Independent Directors, NEDs: Non- executive Directors, WTD: Whole time Directors
IA: Internal Audit; BCM: Business continuity management	50
IFC: International Finance Corporation, IiAS: Institutional Investor Advisory Services

Agenda

• Company strategy and performance
• Opportunity
• Industry overview

Favorable demography

Large and growing population base1

2020 Population (mn)

1380 1439

								213	274	331
				127	146
51	59
	S Korea		S Africa		Japan		Russia		Brazil		Indonesia		USA	India			China

High share of working population1

Population of age 25-59 years (in mn)

727

578

2015

2030

Driving GDP growth2		Rising affluence2

7.7%	7.9%													8.0%	8.2%										8.8%
							7.4%					7.2%
											6.4%
									5.5%														6.1%
				5.2%
4.8% 4.2%																			4.2%
3.1%			2.7%	2.8%			2.9%						3.8%	3.5%
1.9%			2.5%			2.6%						2.8%	5.2%
	FY02 FY08			FY10 FY12		FY13		FY14		FY15	FY16			FY17 FY18		FY19		FY20E FY21E FY22E
				-1.7%
																																	-4.4%
																													-10.3%
																India					World

GDP per capita CAGR

(FY2009-FY2019)

																		10.9%
										6.0%	7.3%
						2.6%	4.4%
-0.3%	0.0%	0.1%
	Russia		Japan		Brazil		U.S.A		South Korea			Indonesia			India		China

1. Source: UN population division
2. Source: WEO Update, October 2020

52

Financialisation of savings: Opportunity for insurance

				Household savings1
	90		69%								70%
				60%			61%		63%	58% 60%
	70					55%
tn		54%	52%
			52%
								50%
`				48%
50			45%		45%
	44%
							36% 40%
									40%
	30					36%		37%	19.54	22.17
					31%	15.59	13.64	16.53			30%
					14.23
			5.38	8.56
	10	2.98					20.61	19.96
				14.96	14.38
		9.90	9.33	12.57	20%
		7.72
		2.86
	-10	-0.52	-1.88	-2.03	-2.90	-3.77	(3.91)	-4.69	-7.38	-7.66	10%

FY2002	FY2008	FY2010	FY2012	FY2015	FY2016	FY2017	FY2018	FY2019
-30								0%

Physical savings

Gross financial savings

Household borrowings

Gross Financial savings as a % of Household Savings

Net Financial savings as a % of Household Savings

Distribution of financial savings (excluding currency)2

	23.8%	19.0%
25.1%		18.8%
		26.7%	20.3%
	29.0%				20.5%

16.0%	15.1%
	21.9%

FY2002 FY2008 FY2010 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

Provident / Pension Fund / Claims on Govt

Shares / Debentures / MFS

Life Insurance Fund

Deposits

	FY2002	FY2008	FY2010	FY2012	FY2014	FY2018	FY2019	FY2020
Life insurance premium3	2.1%	4.0%	4.1%	3.3%	2.8%	2.7%	2.7%	2.8%
as % of GDP

• Financialisation of savings aided by Direct Benefit Transfer, RERA and GST

1.	Source: RBI and CSO
2.	Source: RBI
3.	Total life insurance industry premium including renewal; Source: IRDAI	53

Protection opportunity: Where we are…
Sum Assured as a % of GDP1,2	Addressable population#			Protection gap(%) 4,5
			coverage3 (%)
273%
252%	251%			83	61	55	54	76	71	74	55
			10%	16.50
	142%	131%
		113%		trillion
				8.40
				USD		3.90	2.80
		19%						2.00	0.90	0.70	0.60

* For retail protection sum assured (company	# Based on Income Tax Department
estimates)	data for individuals (annual income >

1. • 250,000) and company estimates
2. As of FY2020 for India (GDP Source: National Statistics Office, protection sum assured source: company estimates)
3. As of FY2018 for US, Japan, South Korea. Others as of FY2017 (Source: McKinsey estimates)
4. Addressable population coverage= Inforce no. of lives for retail protection/ No. of returns with income > ` 250,000
5. Protection gap (%): Ratio of protection lacking/protection needed

5.	Source: Swiss Re, Closing Asia's mortality protection gap, 2020	54

Opportunity: Sum assured as a % of GDP

Sum Assured (SA) as a % of GDP:

Assuming SA growth @ 20% CAGR

			75%
		45%
	30%
19%
FY2020	FY2025	FY2030	FY2035

Sum Assured (SA) as a % of GDP:

Assuming SA growth @ 25% CAGR

			145%
		70%
	35%
19%
FY2020	FY2025	FY2030	FY2035

Sum Assured as a % of GDP1,2

273%
252%	251%
		India: FY2035
	145%	142%
		131%
			113%
			75%
			19%

* For retail protection sum assured (company estimates)

1. FY2020 GDP data for India (Source: National Statistics Office, protection sum assured source: company estimates)

2.

As of FY2018 for US, Japan, South Korea. Others as of FY2017 (Source: McKinsey estimates)

55

Opportunity: Addressable population coverage (%)

With 15% CAGR in new policy count from FY2020 to FY2035

In million

250.8

170.7

106.0

57.5

			69.9
		34.1
6	15.8
FY2020	FY2025	FY2030	FY2035

With 20% CAGR in new policy count from FY2020 to FY2035

In million

250.8

170.7

106.0

57.5

			115.7
		46.1
6	17.8
FY2020	FY2025	FY2030	FY2035

Insured Uninsured		Insured Uninsured

Assumed 10% lapse rate for inforce policies at each year	56

Protection opportunity: Liability cover

` billion

Retail Credit

												25,537
											22,207
										19,085
							16,200			12,147
			13,922						10,606
	10,097	11,663								9,339
8,976						7,599
		6,454
		5,378
	4,711
4,409										11,601	13,390
									9,746
							8,601
		6,285	7,468
4,567	5,386
Mar-13	Mar-14	Mar-15			Mar-16	Mar-17	Mar-18	Mar-19	Mar-20
					Home Loans			Others

• Retail credit has been growing at a healthy pace
• Credit life is voluntary

Source: RBI

Components may not add up to the totals due to rounding off

57

Protection opportunity

Gross direct premium (` billion)	FY2009	FY2020	CAGR
Health	66.23	516.38	20.5%
Motor	138.21	692.08	15.8%
- Motor Own Damage (OD)	87.56	265.52	10.6%
- Motor Third Party (TP)	50.65	426.56	21.4%

• Protection premium ~ ` 200 billion for life insurance industry in FY2020

Source: General Insurance Council and company estimate

58

Agenda

• Company strategy and performance
• Opportunity
• Industry overview

Evolution of life insurance industry in India

FY2002		FY2010		FY2015

New business premium	1	(` bn)	116		550	-5.8%
21.5%	408
Total premium (` bn)
		501	3.2%	2,654	4.3%	3,281
Penetration (as a % to GDP)
2.1%		4.1%		2.6%
Assets under management (` bn)	2,304	24.0%	12,899	12.6%	23,361

12.5%

11.6%

10.1%

FY2020

735

5,683

2.8%

37,757

In-force sum assured	2	(` bn)	11,812*	15.5%	37,505	15.8%	78,091	17.3%	173,077
In-force sum assured (as % to GDP)	50.1%		57.9%		62.7%
			85.1%

1.	Retail weighted received premium (RWRP)
2.	Individual and Group in-force sum assured
Source: IRDAI, CSO, Life Insurance Council, *Company estimate	60

Channel mix1

Industry

Private sector

11%	12%	13%		21%		22%	24%
27%	28%	25%
								54%		53%	52%
62%	60%	62%
								25%		25%	23%
	FY2019		FY2020		H1-FY2021
					FY2019	FY2020	H1-FY2021
						Agency		Bancassurance		Others

• Given a well developed banking sector, bancassurance continues to be the largest channel for private players
  1. Individual new business premium basis Source: Life Insurance Council

61

Product mix1

Industry

Private sector

26%	18%	16%
	35%

51%	44%

74%	82%	84%

	56%	65%
49%

FY2019	FY2020	H1-FY2021		FY2019	FY2020	H1-FY2021
				Non-linked		Linked

1. New business weighted premium basis; Source: IRDAI, Life Insurance Council

62

Annexures

VNB growth and contribution
VNB Margin(%)	17.0%	21.7%					VNB contribution*
	VNB growth range to achieve	25%		FY2019		FY2020
	our aspiration		19%	VNB					16.05
				13.28
			` billion
` billion		16.05
							4.20
	13.28				4.17
						(26.2%)
				(31.4%)
							7.89	2.27	9.58
					1.22		(59.4%)	(14.1%)	(59.7%)
					(9.2%)
	FY2019	FY2020
					Protection	Savings: Non-linked	Savings: Linked

VNB growth of 21%; margin 21.7%

74% VNB from protection & non-linked savings

*Figures in brackets represent share of VNB
Total may not add up due to rounding off	64

Value of New Business (VNB)

` billion		FY2019		FY2020
VNB		13.28		16.05
VNB margin		17.0%		21.7%
4.7%	(1.1%)	0.1%	1.0%	21.7%
17.0%

FY2019	Business mix	Tax rate*	Assumption	Expense	FY2020
			changes

* Change in effective tax rate

65

Protection and Annuity

Protection
mix1	8.5%	11.2%	20.6%	25.2%

Protection new business received premium (` billion)

31.44

21.37

10.28

6.71

Annuity
mix1	2.6%	3.4%	6.6%	8.4%

Annuity new business received premium (` billion) 10.43

6.85

3.11

2.06

FY2017	FY2018	FY2019	FY2020
FY2017	FY2018	FY2019	FY2020

Protection and Annuity contributed over 1/3rd of new business premium

1. % of new business received premium as per financials

66

Protection: Components

APE (` billion)	11.16
	2.35
7.22	1.13

1.57

1.28

7.68

4.36

FY2019FY2020 Retail Protection Group Term Credit Life

Retail protection is ~70% of protection APE

	Protection split based on APE*
` billion	(FY2020)
	1.74	Retail protection
(15.6%)
0.61
(5.5%)		Group Term
1.13
(10.1%)	7.68	Credit life - ICICI
	(68.8%)	Bank

Credit life - Other

Credit life through third party contributes

~16% of protection APE

* Figures in brackets represent mix of protection APE
Components may not add up to the totals due to rounding off	67

Retail persistency excluding single premium1

Persistency across product categories

82.6%	88.3%	82.6%
64.7%		65.8%
		51.7%

Linked		Non linked	Protection
		13th month		49th month

Persistency across channel categories

81.7%		86.4%	82.2%		86.9%
			74.2%
		65.5%		66.2%
	62.7%

Bancassurance	Agency		Direct	Partnership distribution
			13th month		49th month

1. 11M-FY2020 persistency

As per IRDA circular dated January 23,2014; excluding group and single premium policies

68

Average APE by product categories

Average retail APE per policy (`)	FY2018	FY2019	FY2020
ULIP	180,746	159,329	183,109
Par	62,379	60,308	64,285
Non Par	54,187	76,468	109,410
Protection	9,123	12,048	23,115
Total	90,620	83,309	88,648

69

Policy term and customer age*

Average policy term (years)

Average customer age (years)

43 43

12

36

30

14

36 36

SavingsProtection

FY2019 FY2020

SavingsProtection

FY2019 FY2020

* For FY2020; protection excludes credit life

70

Channel wise product mix1

Channel category	Product category	FY2018	FY2019	FY2020
	ULIP	89.8%	93.4%	86.8%
	Par	7.3%	2.1%	2.2%
Bancassurance	Non par	0.1%	0.6%	1.8%
	Protection	2.7%	3.9%	9.3%
	Total	100.0%	100.0%	100.0%
	ULIP	81.8%	75.3%	49.9%
	Par	13.5%	18.1%	32.5%
Agency	Non par	0.4%	0.5%	7.3%
	Protection	4.3%	6.1%	10.3%
	Total	100.0%	100.0%	100.0%
	ULIP	88.0%	79.3%	66.7%
	Par	4.3%	5.3%	10.7%
Direct	Non par	2.4%	6.4%	11.0%
	Protection	5.3%	9.1%	11.6%
	Total	100.0%	100.0%	100.0%
	ULIP	36.8%	28.2%	21.8%
	Par	49.9%	49.5%	39.9%
Partnership distribution	Non par	0.5%	0.6%	10.4%
	Protection	12.8%	21.8%	27.8%
	Total	100.0%	100.0%	100.0%

1. Retail Annualized Premium Equivalent (APE)

Components may not add up to the totals due to rounding off

71

Product wise channel mix1

Product category	Channel category	FY2018	FY2019	FY2020
	Bancassurance	57.4%	65.5%	68.2%
	Agency	25.4%	20.5%	16.3%
ULIP	Direct	14.5%	12.0%	13.0%
	Partnership distribution	2.7%	2.1%	2.5%
	Total	100.0%	100.0%	100.0%
	Bancassurance	35.4%	13.8%	9.0%
	Agency	31.5%	45.4%	56.0%
Par	Direct	5.3%	7.4%	11.0%
	Partnership distribution	27.7%	33.3%	24.0%
	Total	100.0%	100.0%	100.0%
	Bancassurance	15.9%	27.4%	19.4%
	Agency	24.5%	8.0%	33.7%
Non par	Direct	52.8%	62.0%	30.1%
	Partnership distribution	6.8%	2.6%	16.8%
	Total	100.0%	100.0%	100.0%
	Bancassurance	35.2%	36.9%	45.2%
	Agency	27.6%	22.8%	20.9%
Protection	Direct	17.9%	18.7%	14.0%
	Partnership distribution	19.3%	21.7%	19.8%
	Total	100.0%	100.0%	100.0%

1. Retail Annualized Premium Equivalent (APE)
Components may not add up to the totals due to rounding off	72

Embedded value

Embedded value

` billion	FY2018	FY2019	FY2020
Value of In force (VIF)	117.64	142.69	151.87
Adjusted Net worth	70.24	73.54	78.43
Embedded value1	187.88	216.23	230.30
Return on Embedded Value (ROEV)	22.7%	20.2%	15.2%
EV growth-pre dividend	23.4%	19.6%	8.4%
EV growth-post dividend	16.1%	15.1%	6.5%
VNB as % of opening EV	7.9%	7.1%	7.4%
Operating assumption changes as % of	4.7%	2.2%	(1.0%)
opening EV
Operating variance as % of opening EV	1.6%	2.5%	0.8%

1. As per Indian Embedded Value (IEV) method Components may not add up to the totals due to rounding off

74

EV methodology

• EV results prepared based on the Indian Embedded Value (IEV) methodology and principles as set out in Actuarial Practice Standard 10 (APS10) issued by the Institute of Actuaries of India (IAI)
• EV consists of Adjusted Net Worth (ANW) and Value of in-force covered business (VIF)
• • ANW is market value of assets attributable to shareholders, consisting of
  • • Required capital
    • Free surplus
  • Value of in-force covered business (VIF) is
  • • Present value of future profits; adjusted for
    • Time value of financial options and guarantees;
    • Frictional costs of required capital; and
    • Cost of residual non-hedgeable risks

75

Components of ANW

• Required capital (RC)
• • The level of required capital is set equal to the amount required to be held to meet supervisory requirements.
  • It is net of the funds for future appropriation (FFAs)
• Free surplus (FS)
• • Market value of any assets allocated to, but not required to support, the in-force covered business

76

Components of VIF (1/2)

• Present value of future profits (PVFP)
• • Present value of projected distributable profits to shareholders arising from in- force covered business
  • Projection carried out using 'best estimate' non-economic assumptions and market consistent economic assumptions
  • Distributable profits are determined by reference to statutory liabilities
• Frictional Cost of required capital (FC)
• • FCs represent investment management expenses and taxation costs associated with holding the Required capital
  • Investment costs reflected as an explicit reduction to the gross investment return

77

Components of VIF (2/2)

• Time value of financial options and guarantees (TVFOG)
• • Represents additional cost to shareholders that may arise from the embedded financial options and guarantees
  • Stochastic approach is adopted with methods and assumptions consistent with the underlying embedded value
• Cost of residual non-hedgeable risk (CRNHR)
• • An allowance for risks to shareholder value to the extent not already allowed for in the TVFOG or the PVFP
  • Allowance for asymmetric risks of operational, catastrophe mortality/morbidity and mass lapsation risk
  • Determined using a cost-of-capital approach
  • Allowance for diversification benefits among the non-hedgeable risks, other than the operational risk

78

Components of EV movement (1/2)

• Expected return on existing business (unwind)
• • Expected investment income at opening reference rate on VIF and ANW
  • Expected excess 'real world' investment return over the opening reference rate on VIF and ANW
• Operating assumption changes
• • Impact of the update of non-economic assumptions both on best estimate and statutory bases to those adopted in the closing EV
• Value of new business
• • Additional value to shareholders created through new business during the period

79

Components of EV movement (2/2)

• Operating experience variance
• • Captures impact of any deviation of actual experience from assumed in the opening EV during the inter-valuation period
• Economic assumption changes and Investment variance
• • Impact of the update of the reference rate yield curve, inflation and valuation economic assumptions from opening EV to closing EV
  • Captures the difference between the actual investment return and the expected
    'real world' assumed return
• Net capital injection
• • Reflects any capital injected less any dividends paid out

80

Key assumptions underlying EV (1/2)

• Discount rate and Fund earning rates
• • Set equal to reference rates which is proxy for risk free rates
  • Reference rates derived on the basis of zero coupon yield curve published by the Clearing Corporation of India Limited
• Expenses and commission
• • Based on the Company's actual expenses during FY2020 with no anticipation for productivity gains or cost efficiencies
  • Commission rates are based on the actual commission payable to the distributors

81

Key assumptions underlying EV (2/2)

• Mortality and morbidity
• • Based on company's experience with an allowance for future improvements in respect of annuities
• Persistency
• • Based on company's experience
• Taxation
• • Taxation costs reflect the reduction in costs due to dividend income being tax exempt subject to maximum of dividend declared and distributed1

1. Limit of deduction subject to dividend distribution introduced in Finance Act, 2020

82

Economic assumptions underlying EV

Tenor (years)		References Rates
	March 31, 2019	March 31, 2020 December 31, 2020
1	6.66%	4.83%	3.52%
5	7.83%	7.43%	6.77%
10	8.35%	7.32%	7.79%
15	8.35%	7.17%	7.63%
20	8.22%	7.14%	7.26%
25	8.11%	7.14%	6.95%
30	8.05%	7.14%	6.74%

83

Glossary

• Annualized Premium Equivalent (APE) - Annualized Premium Equivalent (APE) is the sum of the annualized first year premiums on regular premium policies, and ten percent of single premiums, from both individual and group customers
• Assets under management (AUM) - AUM refers to the carrying value of investments managed by the company and includes loans against policies and net current assets pertaining to investments
• Embedded Value (EV) - Embedded Value (EV) represents the present value of shareholders' interests in the earnings distributable from the assets allocated to the business after sufficient allowance for the aggregate risks in the business
• Embedded Value Operating Profit (EVOP) - Embedded Value Operating Profit (EVOP) is a measure of the increase in the EV during any given period due to matters that can be influenced by management
• Retail Weighted Received Premium (RWRP) - Premiums actually received by the insurers under individual products and weighted at the rate of ten percent for single premiums
• Total weighted received premium (TWRP) - Measure of premiums received on both retail and group products and is the sum of first year and renewal premiums on regular premium policies and ten percent of single premiums received during any given period
• Persistency Ratio - Persistency ratio is the percentage of policies that have not lapsed and is expressed as 13th month, 49th month persistency etc. depicting the persistency level at 13th month (2nd year) and 49th month (5th year) respectively, after issuance of contract

•	84

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 Prudential Life Insurance undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

85

Thank you