ICICI group – insurance

businesses

July 2003
 Contents

Indian insurance sector

ICICI Prudential Life Insurance

ICICI Lombard General Insurance

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 The insurance opportunity in India
16.0%
14.2%
14.0%
12.1% Premium as a % of GDP
12.0%
10.0% 9.0%
8.0%
6.0% 5.2%
4.0% 2.9% 2.7% 2.2%
2.0%
0.0%
United South United Malaysia Thailand India China
Kingdom Korea States

Life insurance General insurance

Source: Swiss Re, Economic Research & Consulting (June 2002)

The Indian insurance sector is under penetrated in both the life &
general insurance segments

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 Private sector is gaining market share…

Life Insurance Non-

Non-Life Insurance
1.8% 7.8% 4.5% 9.5%
100.0 100.0

75.0 75.0
% 50.0
50.0 98.2 92.2 95.5 90.5
25.0 25.0

0.0 0.0
FY02 FY03 FY02 FY03

Public sector
Private sector

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 The Indian insurance landscape today

Number of players
Segment Public Private
Total
sector sector

Life 1 12 13

Non-
Non-life 4 9 13

Reinsurance 1 - 1
Source: IRDA Journal (July 2003)

With increasing competition in the sector, success would depend

on the following key factors…

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 Key success factors
z Experience of sponsors
z Access to capital
z Strong brand
z Channel strength
z Speed & quality of reach to customer
z Access to customer base
z Sound risk measurement and management
practices
z Building an optimal product portfolio
z Scale of operations
z Key requirement for ensuring operating & cost
efficiencies

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 Contents

Indian insurance sector

ICICI Prudential Life Insurance

ICICI Lombard General Insurance

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 Joint venture partner – Prudential plc
z Largest life insurance company in U.K. & a leading
player in Asia
z Present in about 15 countries
z Serves over 12 million customers
z Manages assets of about US$ 250.00 billion
z Holds 26% stake in ICICI Prudential

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 Market leadership
S h are in private life in su ran ce
market (%) in FY 2003 1

61

Over twice the size of the

nearest private player
39
Share i n Pensi ons (%) in
ICICI Prudential Other Private Players FY2003
69

23% share in the overall

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pensions business
8
1Excludes group business ICICI Prudential Other Private Players LIC

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 Product mix1

FY2002 FY2003
Non Par Linked
Linked Non Par
8% 27%
3% 3%
Par Linked
Par
62% Pensions
Pensions
10% 24%
Par Pensions
27%

Par
36%

Higher proportion of linked business enhances capital efficiency

1 Annualised Premium Equivalent (APE) basis

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 Growth in distribution
Particulars FY2002 FY2003 Q1-
Q1-2004

Locations 13 25 29

Branches 14 29 41

Staff 843 1,932 2,475

Agents 9,641 18,344 22,060

Bancassurance
relationships 3 8 8

Continued focus on expanding reach & penetration for

increasing market share

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 Channel mix

% of APE
Particulars
FY2002 FY2003 Q1-
Q1-2004

Tied agency 82% 72% 79%

Corporate agency 11% 10% 7%

Bancassurance 7% 18% 14%

Total 100% 100% 100%

Q1--2004
ICICI Bank’s share in bancassurance was about 46% in Q1

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 Financial performance in FY2003
(Rs. million)
Particulars FY2003 Q1-
Q1-2004

Net premium 4,176.2 978.8

PAT/ (Loss) (1,471.8) (352.0)

Networth 1,724.9 1,373.7

NBAP 714.4 224.5

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 Contents

Indian insurance sector

ICICI Prudential Life Insurance

ICICI Lombard General Insurance

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 Joint venture partner – Lombard Canada
z One of the leading non-
non-life insurers in Canada
z Asset base in excess of Canadian $1 billion
z Annual gross premium in excess of Canadian $750
million
z Lombard is a subsidiary of Fairfax
z Fairfax had total assets of about Canadian $35 billion
and gross written premiums of over Canadian $8
billion in FY2002
z Holds 26% stake in ICICI Lombard

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 Market share
FY2002 (%) FY2003 (%)
5.8
16.2
Bajaj Allianz
16.8
15.3
Tata AIG
16.7 16.1
ICICI Lombard

Iffco Tokio

30.3 15.3 13.8

Reliance
21.7
16.5 Others 15.5

Source: IRDA Journal

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 Product mix in FY2003
Fire &
Engg. Marine Motor Others Total
Engg.
Public sector 24.3 8.7 38.9 28.1 100.0

Private sector* 34.5 6.6 34.0 24.9 100.0

ICICI Lombard 71.8 4.2 1.3 22.7 100.0

Total 25.8 8.4 38.0 27.8 100.0

*excludes ICICI Lombard

Focused on profitable segments such as fire & engineering

having low loss ratios

Source: IRDA Journal

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 Reach
Presence in 38 locations

Jalandhar
Ludhiana
Patiala Chandigar
h Delhi
Jaipur
Kanpur
Bhuj Luckno
Udaipur
w Jamshedpur Guwahati
Anand A’bad
Bharuc Baroda Bhopal Rachi Kolkata
h Indore
Surat Bhubaneshwar
Aurangabad
Mumbai Nagpur
Raipur
Pune H’bad Vizag

Panjim
B’lore

Chennai
Madurai
Coimbatore
Cochin

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 Re-
Re-insurance & claims settlement
z Continued support of reinsurance majors
including:
z Munich Re (lead)
z Swiss Re
z Highest reinsurance commission income levels
amongst private insurers in India
z Tie-
Tie-up with Cunningham Lindsey, world’s second
largest surveyors, for uniform and efficient claims
settlement practices

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 Financial performance in FY2003
(Rs. million)
Particulars FY2003 Q1-
Q1-2004

Gross Written Premium 2,152.1 1,261.5

Net premium 272.3 141.6

Underwriting result (107.1) 11.4

PAT/ (Loss) 33.0 63.9

Networth 1,036.2 1,100.5

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 Thank you

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