Leadership in life insurance

November 2015

Industry overview

Outlook

Agenda

Company strategy and performance

2

Industry overview

Outlook

Agenda

Company strategy and performance

3

Total premium (Rs bn)

Penetration (as a % to

GDP)

New business premium1

(Rs bn)

FY2015

408

3,277

FY2002

116

501

2.1%

21.5%

23.2%

Source: IRDAI, CSO, Life insurance council

* Company estimate

Evolution of life insurance industry in India

Assets under

management (Rs bn)23,4422,304

24.0%

1. Retail weighted premium

2. Individual and Group in-force sum assured

FY2010

550

2,655

12,899

-5.8%

4.3%

12.7%

2.8%

In-force sum assured2

(Rs bn)

11,812* 37,505 78,78615.5% 16.0%

2.1% 4.1% 2.6%

In-force sum assured (as

% to GDP)

50.1% 57.9% 62.8%

4

1. Retail weighted new business premium

Source : IRDAI, Life insurance council

Rs

bn

Growth FY2012 FY2013 FY2014 FY2015 H1FY2016

Private -23.9% 1.9% -3.4% 15.9% 15.2%

LIC 11.2% -4.1% -3.4% -26.3% -11.1%

Industry -4.8% -1.9% -3.4% -10.3% 0.4%

New business1: Private players showing strong growth

45.7%

36.5% 38.0%38.0%

49.0%50.2%

0%

10%

20%

30%

40%

50%

60%

0

50

100

150

200

250

300

350

FY2011 FY2012 FY2013 FY2014 FY2015 H1FY2016

LIC Private Private market share

5

Bancassurance dominant channel for private players1

Industry

1. Individual new business premium basis

Source: IRDAI, Public disclosures

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

Private players

6

44% 40% 40% 36% 33%

39% 43% 44%47% 48%

17% 17% 16% 17% 19%

FY2012 FY2013 FY2014 FY2015 Q1FY2016

Agency Bancassurance Others

Given a well developed banking sector, bancassurance has

become largest channel for private players

LIC- 95% of Individual new business sales contributed by agency

79% 78% 78%71% 71%

15% 16% 16%21% 20%

6% 6% 6% 8% 8%

FY2012 FY2013 FY2014 FY2015 Q1FY2016

Agency Bancassurance Others

Share of ULIPs on the rise1

Industry

1. New business premium basis

Source: IRDAI, Life insurance council 7

Strong value proposition of ULIPs

Transparent and low charges

Lower discontinuous charges upto year 5 and zero surrender penalty

after 5 years

Choice of asset allocation to match risk appetite of different customer

59%65%

71%62% 60%

41%35%

29%38% 40%

FY2012 FY2013 FY2014 FY2015 Q1FY2016

Traditional ULIP

Private players

85%

90%

93%

88% 88%

15%

10%

7%

12% 12%

FY2012 FY2013 FY2014 FY2015 Q1FY2016

Traditional ULIP

Industry overview

Outlook

Agenda

Company strategy and performance

8

Large and Growing Population Base1

50 53

127 143

201

251

316

1,238

1,350

So

uth

Ko

rea

So

uth

Afric

a

Jap

an

Ru

ssia

Brazil

In

do

nesia

US

A

In

dia

Ch

ina

2013 Population (mn)

Driving GDP Growth 3

High Share of Working Population2

Rising Affluence1

2.1%2.5%

3.4% 3.6%

5.4%

7.5%

9.8%10.1%

14.4%

Jap

an

US

A

So

uth

Ko

rea

So

uth

Afric

a

Brazil

Ru

ssia

In

dia

In

do

nesia

Ch

ina

GDP per

Capita

CAGR (2007-

2017)

Indian economy

poised to head

towards sustained

growth fuelled by

favourable

demographics,

rising affluence

Growth rate of

total premium

written by the

insurance industry

has outpaced the

GDP growth rate

over the period of

FY2002-FY2015

1. Source: Economist Intelligence Unit

2. Source: UN population division 2013 release

3. Source: World bank database

4.9%

9.8%

8.5%

6.6%

5.1%

6.9%7.3% 7.5%

7.9% 8.0%

1.9%

4.3%

-1.7%

3.1%2.4% 2.5% 2.6% 2.8%

3.3% 3.2%

FY02 FY08 FY10 FY12 FY13 FY14 FY15 FY16 FY17 FY18

India World

Favourable demography to drive macro growth

585 639

691 739

2015 2020 2025 2030

Population of age 25-60 years (in mn)

9

Share of Insurance in Savings Expected to Rise

India has a high household savings rate

Part of physical savings shifting to financial savings

Financial savings headed toward a rebound

Financial year 2002 2008 2010 2011 2012 2013 2014 2015

Financial savings /

GDP10.5% 11.6% 12.0% 9.9% 7.3% 7.0% 7.2% 7.6%

Household savings /

GDP23.2% 22.4% 25.2% 23.1% 22.8% 20.2% 18.2% 18.1%*

2.98 3.44 4.31 5.38 7.60 8.56

10.26

13.71 13.22 12.46 13.08

2.47 3.13

4.38

5.80

5.71

7.75

7.74

6.43 6.94 8.19 9.59

0

5

10

15

20

25

Rs

trillio

n

Physical savings Financial savings

*Company estimate

10

11

.4%

8.4

%

7.2

%

3.6

%

3.0

%

2.6

%

1.7

%

1.1

%

0%

3%

6%

9%

12%

S.A

fric

a

Jap

an

Ko

rea

Th

ailan

d

US

In

dia

Ch

ina

In

do

nesia

Penetration (Premium / GDP)2

270% 260%

226%

166%149%

106% 96%

60%

0%

50%

100%

150%

200%

250%

300%

US

Jap

an

Sin

gap

ore

Ko

rea

Mala

ysia

Germ

an

y

Th

ailan

d

In

dia

Sum Assured as % of GDP 3

Share of insurance in financial savings expected to rise

1. Source: Reserve Bank of India

2. Source: Swiss Re - World insurance in 2014

3. Source: McKinsey analysis 2013

11

14.4%22.0%

26.2%19.5% 21.0% 17.8% 16.0%

19.0%

0%

20%

40%

60%

80%

100%

FY2002 FY2008 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

Distribution of financial assets1

Currency & Deposits Life Insurance Fund

Shares / Debentures / MFS Provident / Pension Fund / Claims on Govt

Industry overview

Outlook

Agenda

Company strategy and performance

12

Sustainability

Improve cost

efficiency

Better persistency

and surrender

control

Robust risk

management and

control process

Customer centricity

Superior value to

customers

through better

products

Superior risk

adjusted fund

performance

Smooth on-

boarding and

service

experience

Distribution

Multi-channel

approach

Micro market

strategies leading

to Geographic

leadership

Digital platform to

expand

distribution

capacity and

improve

productivity

Strategy: Market leadership + Profitable growth

13

Premium summary

83.19

153.07

124.29

14

61.34

135.38

34.20 34.32

48.21

80.55 81.00

95.71

20.63

8.97

9.14

0

20

40

60

80

100

120

140

160

FY2013 FY2014 FY2015

Rs b

n

18.45 22.38

37.34

47.53

5.55

13.28

0

20

40

60

80

100

120

140

160

H1FY2015 H1FY2016R

s b

n

Retail new business premium Retail renewal premium Group premium

Consistently outperforming industry growth1

1. Retail weighted received premium (RWRP) basis

Source: IRDAI, Life insurance council 15

17.5%

-1.7%

41.3%

1.9%

-3.4%

15.9%

-1.9%-3.4%

-10.3%

-20%

-10%

0%

10%

20%

30%

40%

50%

FY2013 FY2014 FY2015

ICICI Prudential Private players Industry

28.9%

21.2%

8.8%

15.2%

-10.5%

0.4%

-20%

-10%

0%

10%

20%

30%

40%

50%

H1FY2015 H1FY2016

Gaining market share1

1. Retail weighted received premium (RWRP) basis

Source: IRDAI, Life insurance council 16

7.0% 7.2%

11.3%

18.5% 18.9%

23.0%

0%

5%

10%

15%

20%

25%

30%

FY2013 FY2014 FY2015

10.3%

12.4%

23.6%

24.8%

0%

5%

10%

15%

20%

25%

30%

H1FY2015 H1FY2016

Within total industry Within private sector

Consistent leadership1

1

3

4

5

2

FY2006 FY2013

6

FY2014

1. Retail weighted received premium (RWRP) basis

FY2002 FY2010 FY2015 H1FY2016

17

Product strategy

Customer centric product design

Offer superior IRRs to customer, IRR increases with tenure

Products for every life stage & income segment

Increased focus on protection

Credit life

Attachment with our savings products and partner

products

Health

From products to iSolutions

Combining products to create customized solutions

18

Product strategy

Savings Characteristics Strategy

Linked

Transparent; low

charges; choice of asset

class; no lapse risk for

customers

Core product offering; funds across

asset classes and option for capital

protection to cater customers with

different risk appetite

Par

Upside based on fund

performance; 90% of

surplus shared with

customers as bonus

Allow product mix to float between

par and linked based on customer

preference

Non-Par

savings

Guaranteed returns; high

lapse risk for customersNot an area of focus currently

Protection Business environment Strategy

Term Low penetrationGrow at 2x-3x of company’s overall

growth

Health

Regulatory changes likely

to create level playing

field vis-a-vis P&C

players

Emerging focus area; growth

dependent on evolving

environment

19

Product mix

1. Retail weighted received premium (RWRP) basis

20

18.04 21.62

38.95

15.07 10.91

7.01

0

10

20

30

40

50

FY2013 FY2014 FY2015

Rs b

n

Product mix1

FY2013 FY2014 FY2015 H1FY2015 H1FY2016

Linked 54.5% 66.5% 84.8% 81.8% 85.6%

Non Linked 45.5% 33.5% 15.2% 18.2% 14.4%

14.29

18.12

3.17

3.06

0

10

20

30

40

H1FY2015 H1FY2016

Rs b

n

Linked Non Linked

Protection APE increased from Rs 0.29 bn in H1FY2015 to

Rs 0.49 bn in H1FY2016

Channel mix

1. Retail weighted received premium (RWRP) basis21

11.73 9.43

11.51

14.87 17.77

27.19

4.34 3.12

3.16

2.16 2.21

4.09

0

10

20

30

40

50

FY2013 FY2014 FY2015

Rs b

n

Channel Mix1

FY2013 FY2014 FY2015 H1FY2015 H1FY2016

Agency 35.4% 29.0% 25.0% 22.5% 21.1%

Bancassurance 44.9% 54.6% 59.2% 61.8% 62.8%

Corporate agents and brokers 13.1% 9.6% 6.9% 6.9% 6.7%

Direct 6.5% 6.8% 8.9% 8.8% 9.4%

3.93 4.47

10.80

13.30

1.21

1.43 1.54

1.99

0

10

20

30

40

H1FY2015 H1FY2016

Rs b

n

Agency Bancassurance Corporate agents and brokers Direct

Post sales

Enable anytime,

anywhere servicing

View and update

policy details and

execute payments

Ease of upsell

through pre-

approved additional

cover

Ease of self-

servicing for

employee / agent

Pre sales

Structured sales

approach and need

analysis

Product literature in

12 languages to aid

sales

Standardized

content including

videos to enable

consistent

messaging

Integrated with lead

management

system

Fulfilment

Intuitive, easy to use

app form with data

pre population

eKYC – no doc

required for existing

ICICI Bank, ICICI Life

customers and

Aadhar card holders

Ease of scanning

and uploading doc

Instant underwriting

Support multiple

Online payment

options

Leveraging technology across value chain

Issuance and delivery of e-policy within 2 hours

22

Digitization impact

Employee productivity3

E-Login1

and online renewal payment2

1. New business applications generated through digital medium

2. Transactions processed through website, SMS and IVRS

3. RWRP / Average no. of employees during the period

23

52%

80%

93%

20%

42%

50%

0%

20%

40%

60%

80%

100%

FY2013 FY2014 FY2015

E-Login Online renewal payment

92% 95%

45%

59%

0%

20%

40%

60%

80%

100%

H1FY2015 H1FY2016

2.55 2.77

4.26

0.00

1.00

2.00

3.00

4.00

5.00

FY2013 FY2014 FY2015

Rs m

illio

n

1.58 1.82

0.00

1.00

2.00

3.00

4.00

5.00

H1FY2015 H1FY2016

Rs m

illio

n

Cost efficiency

1. All insurance expenses including commission / Retail weighted received premium

2. Expense ratio: All insurance expenses (excl. commission)

/ (Total premium – 90% of single premium)

3. Commission ratio: Commission / (Total premium –

90% of single premium)

4. Total Expense ratio: Cost / (Total premium – 90% of single premium)

5. Annualized cost / Average assets under management held during the

period

Rs bn FY2013 FY2014 FY2015 H1FY2015 H1FY2016

Cost to RWRP1

75.4% 69.3% 49.1% 57.9% 56.6%

Expense ratio (excl. commission)2

13.3% 13.6% 11.7% 13.8% 13.2%

Commission ratio3

5.9% 5.2% 3.8% 4.0% 3.5%

Total expense ratio4

19.2% 18.8% 15.4% 17.8% 16.7%

Cost / Average AUM5

3.4% 2.9% 2.5% 2.4% 2.4%

24

17.31 16.28 17.05

7.65

6.27 5.53

0

5

10

15

20

25

30

FY2013 FY2014 FY2015

Rs b

n

Non-Commission Commission

24.96

22.5522.58

10.12

11.99

7.87 9.45

2.25

2.54

0

5

10

15

20

25

30

H1FY2015 H1FY2016R

s b

n

Persistency1

1.As per IRDA circular IRDA/ACT/CIR/035/01/2014 dated January 23,

2014

25

71.5%

79.0%

20.3%

54.4%

0%

20%

40%

60%

80%

100%

FY2014 FY2015

13th month 49th month

74.4%

80.4%

20.7%

62.2%

0%

20%

40%

60%

80%

100%

H1FY2015 H1FY2016

Surrender

1. Average monthly retail surrenders

Surrenders1 as % of average AUM

26

1.3%

1.1%

0.9%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

FY2013 FY2014 FY2015

1.0%

0.6%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

H1FY2015 H1FY2016

364.10 423.71

520.97

377.54

382.26

480.86

0

200

400

600

800

1,000

1,200

FY2013 FY2014 FY2015

27

Assets under management

Among the largest fund managers in India

805.97

1,001.83

741.64

575.21 603.10

747.78

166.43

202.86

254.06

0

200

400

600

800

1,000

1,200

FY2013 FY2014 FY2015

805.97

1,001.83

741.64

907.26

991.27

Linked Mix (%)

75.1 73.877.6 74.8 74.6

Equity Mix (%)

48.9 46.550.9 47.4 48.0

Rs bn Rs bn Rs bn Rs bn

27

681.39 731.07

225.87

260.21

0

200

400

600

800

1,000

1,200

H1FY2015 H1FY2016

Linked Other than linked

907.26

991.27

463.40 530.74

443.86

460.53

0

200

400

600

800

1,000

1,200

H1FY2015 H1FY2016

Debt Equity

Maximiser (Equity Fund)Balancer (Balanced fund)Protector (Debt fund)Preserver (Short term debt fund)

Superior fund performance across cycles

Multi-tiered investment management structure with clearly defined

roles and responsibilities

96% of funds have outperformed benchmark since inception*

Over 90% of debt investments in AAA rated and government bonds

Inception Dates:

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

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

* As on September 30, 2015

28

1.3%

8.6%

18.6%

8.6%9.2%

11.9%

14.3%

10.2%

7.7%8.5%8.9%

8.2%

0.8%

5.6%

16.0%

8.6%7.8%

10.5%

12.6%

8.5%

6.8%

8.6%8.6%7.1%

L1YL5YSinceInception

L1YL5YSinceInception

L1YL5YSinceInception

L1YL5YSinceInception

Fund Benchmark

Profitable growth

14.9615.67

16.34

0

3

6

9

12

15

18

FY2013 FY2014 FY2015

4.84

10.93

8.37

0

2

4

6

8

10

12

FY2013 FY2014 FY2015

396

Solvency Ratio (%)

Profit after tax (Rs bn)

357 328372 33731.2 32.6 33.732.7 33.9

1.Based on invested capital

Dividend (Rs bn)

RoE1

(%)

Sustained and strong profitability Best positioned to capitalize on

growth opportunity

29

7.81 8.12

0

3

6

9

12

15

18

H1FY2015 H1FY2016

5.366.01

0

2

4

6

8

10

12

H1FY2015 H1FY2016

New Business Profit1

1. Indian Embedded Value basis

2. Based on long term assumptions

Rs billion FY2015 H1FY2016

APE 47.44 22.34

New Business Profit on target acquisition cost2

6.43 3.08

New Business Margin on target acquisition cost 13.6% 13.8%

New Business Profit on actual acquisition cost2

2.70 1.47

New Business Margin on actual acquisition cost 5.7% 6.6%

30

Summary

1. Sum assured as a % of GDP

2. Premium per capita

3. IRDAI Retail Weighted Received Premium (RWRP)

4. RWRP ratio of ICICI Prudential to nearest competitor

5. Based on invested capital

Low penetration1 and even lower density

2

One of the last emerging markets with significant scale and favourable growth drivers

India: High growth

potential1

#1 in India on RWRP3

basis for every year since FY2002

Distance increased from 1.04x in FY2012 to 1.47x 4

in FY2015

Consistent

Leadership Across

Cycles

2

Revolutionizing customer experience across value chain through digitization

Customer focused product suite; Delivering superior value through product design and

fund performance

Low grievance ratio and best in class claims settlement ratio

Customer Centric

Approach Across

Value Chain

3

Access to network of ICICI bank (#1 Indian private bank ) and Standard Chartered Bank

Continue to invest in agency channel, adding quality agents and improving productivity

Strong focus on technology and digitization to reduce dependence on physical presence

Multi Channel

Distribution backed

by advanced digital

processes

4

Very low regulatory or interest rate risk with over 80% of RWRP contribution from ULIP

products; Over 90% of debt investments in AAA rated and government bonds

Focus on reducing costs - Cost/RWRP declined from 84.8% in FY2012 to 49.1% in FY2015

Strong focus on renewals (high persistency ratios)

Robust &

Sustainable

Business Model

RoE5

of more than 30% since FY2012; Self funded business – no capital calls since FY

2009; cumulative dividend pay-out of Rs 34.29 bn till H1FY2016

With strong solvency of 328% and less capital requirement due to product mix, well

positioned to take advantage of growth

Delivering

Consistent Returns

to Shareholders

5

6

31

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.

32

Thank you

33