Icici Prudential Life Insurance Co. Ltd. · NSE:ICICIPRULI

Icici Prudential Life Insurance — 9MFY2017 Earnings Presentation

32 slides from Icici Prudential Life Insurance's earnings presentation, Jan 24, 2017

  1. Slide 1: 9MFY2017 performance review

    9MFY2017 performance review January 24, 2017

  2. Slide 2: Agenda

    Agenda Company strategy and performance Opportunity Industry overview 2

  3. Slide 3: Agenda

    Agenda Company strategy and performance Opportunity Industry overview 3

  4. Slide 4: Strategy: Market leadership + Profitable growth

    Strategy: Market leadership + Profitable growth  Leverage market opportunity for saving products through Segmented  Delivery of superior customer value through better products, approach to tap market customer service, fund performance and claims management opportunity-  Focus on key local markets

  5. Slide 5: New business

    New business @ICICI PRUDENTIAL? pLirFe «NS UR AN Cee

  6. Slide 6: New Business

    New Business Rs bn FY2015 FY2016 Growth 9MFY2016 9MFY2017 Growth RWRP1 45.96 49.68 8.1% 33.44 42.77 27.9% APE2 47.44 51.70 9.0% 34.94 44.58 27.6% Savings APE 46.68 50.31 7.8% 34.16 42.84 25.4% Protection APE 0.76 1.39 83.6% 0.78 1.74 122.1% 1. Retail weighted received premium 2. Annualized premium e

  7. Slide 7: Premium summary

    Premium summary 200 191.64 200 18.13 153.07 147.75 150 9.14 150 53.57 127.79 7.64 124.29 8.97 48.21 14.70 47.41 Rs bn Rs bn 100 34.32 100 35.66 119.95 50 95.71 50 92.69 81.00 77.42 0 0 FY2014 FY2015 FY2016 9MFY2016 9MFY2017 Retail renewal premium Retail new business premium Group premium 7 Component

  8. Slide 8: Market share

    Market share1 30% 30% 24.5% 25% 23.0% 25% 23.5% 21.9% 20% 18.9% 20% 15% 15% 13.0% 12.1% 11.3% 11.3% 10% 10% 7.2% 5% 5% 0% 0% FY2014 FY2015 FY2016 9MFY2016 9MFY2017 Within total industry Within private sector 1. Retail weighted received premium (RWRP) basis 8 Source: IRDAI, Life insurance council

  9. Slide 9: Consistent leadership in private sector

    Consistent leadership in private sector1 Market Share FY2012 FY2013 FY2014 FY2015 FY2016 9MFY2017 LIC 63.5% 62.0% 62.0% 51.0% 48.5% 47.0% ICICI Prudential 5.9% 7.0% 7.2% 11.3% 11.3% 13.0% SBI Life 4.4% 5.1% 6.2% 7.7% 9.7% 11.3% HDFC Life 5.7% 6.7% 5.2% 7.3% 7.6% 6.2% Max Life 3.1% 3.2% 3.9% 4.8% 4.8

  10. Slide 10: Product mix

    Product mix Product mix1 FY2014 FY2015 FY2016 9MFY2016 9MFY2017 Savings 97.8% 98.4% 97.3% 97.8% 96.1% ULIP 64.1% 83.1% 80.8% 82.3% 83.1% Participating 18.2% 13.2% 14.1% 13.0% 10.2% Non-Participating 13.3% 0.6% 0.4% 0.4% 1.4% Group2 2.2% 1.5% 2.0% 2.1% 1.4% Protection3 2.2% 1.6% 2.7% 2.2% 3.9% 60 60

  11. Slide 11: New business sum assured

    New business sum assured 2,500 2,500 2,054.17 2,000 2,000 1,546.25 1,500 971.99 1,500 Rs bn Rs bn 1,195.35 566.85 1,028.27 1,000 928.65 1,000 528.68 440.56 422.57 500 500 1082.18 979.40 666.67 587.71 506.09 0 0 FY2014 FY2015 FY2016 9MFY2016 9MFY2017 Retail Group 11

  12. Slide 12: Channel mix

    Channel mix Channel Mix1 FY2014 FY2015 FY2016 9MFY2016 9MFY2017 Bancassurance 53.2% 58.4% 57.3% 60.3% 57.7% Agency 28.2% 24.4% 23.8% 21.6% 23.0% Direct 6.3% 8.6% 9.8% 9.2% 11.9% Corporate agents and brokers 9.9% 7.0% 7.0% 6.7% 5.6% Group 2.5% 1.6% 2.1% 2.2% 1.9% 60 60 50 3.61 50 3.32 5.04 4.06 2.51

  13. Slide 13: Quality parameters

    13 Quality parameters @ICICI PRUDENTIAL? pLirFe «NS UR AN Cee

  14. Slide 14: Persistency

    Persistency1 Month FY2014 FY2015 FY2016 9MFY2016 8MFY2017 13th month 71.5% 79.0% 82.4% 80.9% 83.4% 25th month 68.4% 65.9% 71.2% 69.2% 72.9% 37th month 57.3% 64.3% 61.6% 62.3% 64.3% 49th month 20.3% 54.4% 62.2% 71.6%2 60.6%2 61st month 12.7% 14.5% 46.0% 28.2% 65.1% 1. As per IRDA circular dated Janua

  15. Slide 15: Cost efficiency

    Cost efficiency FY2014 FY2015 FY2016 9MFY2016 9MFY2017 Expense ratio (excl. commission)1 13.6% 11.6% 11.0% 12.5% 12.2% Commission ratio2 5.2% 3.8% 3.5% 3.5% 3.7% Cost/TWRP3 18.8% 15.4% 14.5% 16.0% 15.9% Cost / Average AUM4 2.9% 2.5% 2.5% 2.4% 2.7% 30 30 25.45 22.59 22.50 21.90 6.20 18.39 20 6.27 5.5

  16. Slide 16: Superior fund performance across cycles

    Superior fund performance across cycles* 15.9% 14.6% 12.5% 12.9% 11.1% 12.8% 11.4% 9.7% 10.1% 10.0% 8.5% 8.6% 7.6% 7.5% 4.2% 4.2% 1Y 5Y 1Y 5Y 1Y 5Y 1Y 5Y Preserver Protector Balancer Maximiser (Liquid fund) (Debt fund) (Balanced fund) (Equity Fund) Benchmark Fund 94.9% of debt investments in AAA rat

  17. Slide 17: Assets under management

    Assets under management Linked Mix (%) Equity Mix (%) 74.8 74.6 72.4 73.3 71.7 47.4 48.0 46.3 47.0 44.6 Rs bn Rs bn 1,200 1,136.11 1,200 1,136.11 1,039.39 1,017.31 1,039.39 1,001.83 1,017.31 1,001.83 1,000 1,000 320.99 805.97 805.97 506.86 254.06 286.44 272.13 800 800 480.86 478.47 481.04 202.86 600

  18. Slide 18: Profitability

    18 Profitability @ICICI PRUDENTIAL? pLirFe «NS UR AN Cee

  19. Slide 19: Value of New Business

    Value of New Business1 Rs bn FY2015 FY2016 9MFY2017 APE 47.44 51.70 44.58 Savings APE 46.68 50.31 42.84 Protection APE 0.76 1.39 1.74 Value of New Business (VNB) 2.701 4.121 4.212 VNB Margin 5.7%1 8.0%1 9.4%2 Indian Embedded Value 138.22 139.39 -  Growth in Protection APE of 122.1%  Improvement in

  20. Slide 20: Profit After Tax

    Profit After Tax Solvency Ratio (%) 372 337 320 320 294 Profit after tax (Rs bn) 18 16.50 18 15.67 16.34 15 15 12.47 12.74 12 12 Rs bn Rs bn 9 9 6 6 3 3 0 0 FY2014 FY2015 FY2016 9MFY2016 9MFY2017  Sustained and strong profitability  Well positioned to capitalize on growth opportunity 20

  21. Slide 21: Summary

    Summary India: High growth  Low penetration1 vs mature economies and even lower density 1 potential  One of the fastest growing large economy in the world with strong growth drivers Consistent  #1 in India on RWRP2 basis for every year since FY2002 2 Leadership Across Cycles  Significant market

  22. Slide 22: Agenda

    Agenda Company strategy and performance Opportunity Industry overview 22

  23. Slide 23: Favourable demography to drive macro growth

    Favourable demography to drive macro growth High Share of Working Population2 Large and Growing Population Base1  Indian economy 2015 Population (mn) 1311 1376 Population of age 25-60 years (in mn) 739 poised to head 585 towards sustained growth fuelled by favourable 208 258 322 demographics, 127 1

  24. Slide 24: Share of Insurance in Savings Expected to Rise

    Share of Insurance in Savings Expected to Rise Share of insurance in household savings 60 Household Savings1 60% Distribution of financial assets1 48% 45% 41% 40% 21.1% 40 37% 40% 17.0% 15.4% 19.6% 31% 33% 18.3% 26.2% Rs tn 14.4% 20 8.63 9.61 10.65 20% 6.43 7.34 7.75 2.47 14.23 15.00 14.98 14.19 15.

  25. Slide 25: Protection opportunity

    Protection opportunity Sum assured as % of GDP1 Protection coverage gap2,3 (%) 400% 92 56 85 33 73 78 73 56 300% 270% Protection Gap3 260% 226% 10 8.56 200% 8 166% 6.58 USD tn 149% 6 5.30 106% 96% 100% 4 60% 2 1.09 0.79 0.77 0.52 0.40 0% India 0 Singapore Malaysia Germany US Japan Korea Thailand Ind

  26. Slide 26: Agenda

    Agenda Company strategy and performance Opportunity Industry overview 26

  27. Slide 27: Evolution of life insurance industry in India

    Evolution of life insurance industry in India FY2002 FY2010 FY2016 New business premium1 116 21.5% 550 -3.6% 441 (Rs bn) Total premium (Rs bn) 501 23.2% 2,655 5.5% 3,669 Penetration (as a % to 2.1% 4.1% 2.8% 2.7% GDP) Assets under 2,304 24.0% 12,899 11.9% 25,294 management (Rs bn) In-force sum assur

  28. Slide 28: New business

    New business1 Growth FY2013 FY2014 FY2015 FY2016 9MFY2017 Private 1.9% -3.4% 15.9% 13.6% 22.7% LIC -4.1% -3.4% -26.3% 2.9% 16.6% Industry -1.9% -3.4% -10.3% 8.1% 19.8% 400 60% 53.0% 49.0% 51.5% 50% 300 38.0% 38.0% 40% Rs bn 200 30% 20% 100 10% 0 0% FY2013 FY2014 FY2015 FY2016 9MFY2017 LIC Private Pr

  29. Slide 29: Channel mix

    Channel mix1 Industry Private players 6% 8% 8% 8% 16% 17% 16% 18% 16% 21% 24% 21% 44% 47% 52% 50% 78% 71% 68% 71% 40% 36% 32% 32% FY2014 FY2015 FY2016 H1FY2017 FY2014 FY2015 FY2016 H1FY2017 Agency Bancassurance Others  Givena well developed banking sector, bancassurance has become largest channel f

  30. Slide 30: Product mix

    Product mix1 Industry Private players 7% 12% 13% 11% 29% 38% 43% 41% 93% 88% 87% 89% 71% 62% 57% 59% FY2014 FY2015 FY2016 Q1FY2017 FY2014 FY2015 FY2016 Q1FY2017 Traditional ULIP  Strong value proposition of ULIPs  Transparent and low charges  Lower discontinuance charges upto year 5 and zero surr

  31. Slide 31: Safe harbor

    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 forwar

  32. Slide 32: Thank you

    32 Thank you @ICICI PRUDENTIAL? pLirFe «NS UR AN CR

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