ICICI group ICICI group ICICI group ICICI group –––– insurance insurance insurance insurance businessesbusinessesbusinessesbusinesses

July 2003July 2003July 2003July 2003

2

ContentsContentsContentsContents

Indian insurance sector Indian insurance sector Indian insurance sector Indian insurance sector

ICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life Insurance

ICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General Insurance

3

The insurance opportunity in IndiaThe insurance opportunity in IndiaThe insurance opportunity in IndiaThe insurance opportunity in India

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

14.2%14.2%14.2%14.2%

12.1%12.1%12.1%12.1%

9.0%9.0%9.0%9.0%

5.2%5.2%5.2%5.2%

2.9%2.9%2.9%2.9% 2.7%2.7%2.7%2.7% 2.2%2.2%2.2%2.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

UnitedKingdom

SouthKorea

UnitedStates

Malaysia Thailand India China

Life insurance General insurance

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

Premium as a % of GDPPremium as a % of GDPPremium as a % of GDPPremium as a % of GDP

4

95.595.595.595.5 90.590.590.590.5

0.0

25.0

50.0

75.0

100.0

FY02 FY03

Private sector is gaining market share…Private sector is gaining market share…Private sector is gaining market share…Private sector is gaining market share…

Life InsuranceLife InsuranceLife InsuranceLife Insurance NonNonNonNon----Life InsuranceLife InsuranceLife InsuranceLife Insurance

4.5%4.5%4.5%4.5% 9.5%9.5%9.5%9.5%

%%%%

Public sectorPublic sectorPublic sectorPublic sector

Private sectorPrivate sectorPrivate sectorPrivate sector

98.298.298.298.2 92.292.292.292.2

0.0

25.0

50.0

75.0

100.0

FY02 FY03

1.8%1.8%1.8%1.8% 7.8%7.8%7.8%7.8%

%%%%

5

The Indian insurance landscape todayThe Indian insurance landscape todayThe Indian insurance landscape todayThe Indian insurance landscape today

Source: IRDA Journal (July 2003)

With increasing competition in the sector, success would depend With increasing competition in the sector, success would depend With increasing competition in the sector, success would depend With increasing competition in the sector, success would depend on the following key factors…on the following key factors…on the following key factors…on the following key factors…

Private Private Private Private sectorsectorsectorsector

12121212LifeLifeLifeLife

Public Public Public Public sectorsectorsectorsector

1111

TotalTotalTotalTotal

13131313

9999NonNonNonNon----lifelifelifelife 4444 13131313

----ReinsuranceReinsuranceReinsuranceReinsurance 1111 1111

SegmentSegmentSegmentSegment

Number of playersNumber of playersNumber of playersNumber of players

6

Key success factorsKey success factorsKey success factorsKey success factors

Experience of sponsorsExperience of sponsorsExperience of sponsorsExperience of sponsorsAccess to capitalAccess to capitalAccess to capitalAccess to capitalStrong brandStrong brandStrong brandStrong brandChannel strengthChannel strengthChannel strengthChannel strength

Speed & quality of reach to customerSpeed & quality of reach to customerSpeed & quality of reach to customerSpeed & quality of reach to customer

Access to customer baseAccess to customer baseAccess to customer baseAccess to customer baseSound risk measurement and management Sound risk measurement and management Sound risk measurement and management Sound risk measurement and management practicespracticespracticespractices

Building an optimal product portfolioBuilding an optimal product portfolioBuilding an optimal product portfolioBuilding an optimal product portfolio

Scale of operationsScale of operationsScale of operationsScale of operationsKey requirement for ensuring operating & cost Key requirement for ensuring operating & cost Key requirement for ensuring operating & cost Key requirement for ensuring operating & cost efficienciesefficienciesefficienciesefficiencies

7

ContentsContentsContentsContents

Indian insurance sector Indian insurance sector Indian insurance sector Indian insurance sector Indian insurance sector Indian insurance sector Indian insurance sector Indian insurance sector

ICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life Insurance

ICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General Insurance

8

Joint venture partner Joint venture partner Joint venture partner Joint venture partner –––– Prudential Prudential Prudential Prudential plcplcplcplc

Largest life insurance company in U.K. & a leading Largest life insurance company in U.K. & a leading Largest life insurance company in U.K. & a leading Largest life insurance company in U.K. & a leading player in Asiaplayer in Asiaplayer in Asiaplayer in AsiaPresent in about 15 countries Present in about 15 countries Present in about 15 countries Present in about 15 countries Serves over 12 million customersServes over 12 million customersServes over 12 million customersServes over 12 million customersManages assets of about US$ 250.00 billionManages assets of about US$ 250.00 billionManages assets of about US$ 250.00 billionManages assets of about US$ 250.00 billionHolds 26% stake in ICICI PrudentialHolds 26% stake in ICICI PrudentialHolds 26% stake in ICICI PrudentialHolds 26% stake in ICICI Prudential

9

Share in Pensions (%) in Share in Pensions (%) in Share in Pensions (%) in Share in Pensions (%) in FY2003FY2003FY2003FY2003

23232323

8888

69696969

ICICI Prudential Other Private Players LIC

Market leadershipMarket leadershipMarket leadershipMarket leadershipShare in private life insurance Share in private life insurance Share in private life insurance Share in private life insurance

market (%) in FY2003market (%) in FY2003market (%) in FY2003market (%) in FY2003

39393939

61616161

ICICI Prudential Other Private Players

Over twice the size of the Over twice the size of the Over twice the size of the Over twice the size of the nearest private playernearest private playernearest private playernearest private player

23% share in the overall 23% share in the overall 23% share in the overall 23% share in the overall pensions businesspensions businesspensions businesspensions business

1111

1Excludes group business

10

Product mixProduct mixProduct mixProduct mix1111

Par62%

Linked3%

Non Par8%

Par Pensions27%

FY2002FY2002FY2002FY2002

Higher proportion of linked business enhances capital efficiencyHigher proportion of linked business enhances capital efficiencyHigher proportion of linked business enhances capital efficiencyHigher proportion of linked business enhances capital efficiency

FY2003FY2003FY2003FY2003

Linked27%

Non Par3%

Par Pensions

10%

Par36%

Linked Pensions

24%

1 1 1 1 Annualised Premium Equivalent (APE) basisAnnualised Premium Equivalent (APE) basisAnnualised Premium Equivalent (APE) basisAnnualised Premium Equivalent (APE) basis

11

Growth in distributionGrowth in distributionGrowth in distributionGrowth in distribution

Continued focus on expanding reach & penetration for Continued focus on expanding reach & penetration for Continued focus on expanding reach & penetration for Continued focus on expanding reach & penetration for increasing market shareincreasing market shareincreasing market shareincreasing market share

FY2003FY2003FY2003FY2003

25252525LocationsLocationsLocationsLocations

FY2002FY2002FY2002FY2002

13131313

Q1Q1Q1Q1----2004200420042004

29292929

29292929BranchesBranchesBranchesBranches 14141414 41414141

1,9321,9321,9321,932StaffStaffStaffStaff 843843843843 2,4752,4752,4752,475

18,34418,34418,34418,344AgentsAgentsAgentsAgents 9,6419,6419,6419,641 22,06022,06022,06022,060

8888Bancassurance Bancassurance Bancassurance Bancassurance relationshipsrelationshipsrelationshipsrelationships 3333 8888

ParticularsParticularsParticularsParticulars

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Channel mixChannel mixChannel mixChannel mix

FY2003FY2003FY2003FY2003

% of APE% of APE% of APE% of APE

FY2002FY2002FY2002FY2002

72%72%72%72%Tied agencyTied agencyTied agencyTied agency 82%82%82%82%

10%10%10%10%Corporate agencyCorporate agencyCorporate agencyCorporate agency 11%11%11%11%

18%18%18%18%BancassuranceBancassuranceBancassuranceBancassurance 7%7%7%7%

100%100%100%100%TotalTotalTotalTotal 100%100%100%100%

ParticularsParticularsParticularsParticulars

ICICI Bank’s share in bancassurance was about 46% in Q1ICICI Bank’s share in bancassurance was about 46% in Q1ICICI Bank’s share in bancassurance was about 46% in Q1ICICI Bank’s share in bancassurance was about 46% in Q1----2004200420042004

Q1Q1Q1Q1----2004200420042004

79%79%79%79%

7%7%7%7%

14%14%14%14%

100%100%100%100%

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Financial performance in FY2003Financial performance in FY2003Financial performance in FY2003Financial performance in FY2003(Rs. million)

Net premiumNet premiumNet premiumNet premium

Q1Q1Q1Q1----2004200420042004

978.8978.8978.8978.8

PAT/ (Loss)PAT/ (Loss)PAT/ (Loss)PAT/ (Loss) (352.0)(352.0)(352.0)(352.0)

NetworthNetworthNetworthNetworth 1,373.71,373.71,373.71,373.7

NBAPNBAPNBAPNBAP 224.5224.5224.5224.5

ParticularsParticularsParticularsParticulars FY2003FY2003FY2003FY2003

4,176.24,176.24,176.24,176.2

(1,471.8)(1,471.8)(1,471.8)(1,471.8)

1,724.91,724.91,724.91,724.9

714.4714.4714.4714.4

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ContentsContentsContentsContents

Indian insurance sector Indian insurance sector Indian insurance sector Indian insurance sector Indian insurance sector Indian insurance sector Indian insurance sector Indian insurance sector

ICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life InsuranceICICI Prudential Life Insurance

ICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General InsuranceICICI Lombard General Insurance

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Joint venture partner Joint venture partner Joint venture partner Joint venture partner –––– Lombard CanadaLombard CanadaLombard CanadaLombard Canada

One of the leading nonOne of the leading nonOne of the leading nonOne of the leading non----life insurers in Canadalife insurers in Canadalife insurers in Canadalife insurers in CanadaAsset base in excess of Canadian $1 billionAsset base in excess of Canadian $1 billionAsset base in excess of Canadian $1 billionAsset base in excess of Canadian $1 billionAnnual gross premium in excess of Canadian $750 Annual gross premium in excess of Canadian $750 Annual gross premium in excess of Canadian $750 Annual gross premium in excess of Canadian $750 million million million million Lombard is a subsidiary of FairfaxLombard is a subsidiary of FairfaxLombard is a subsidiary of FairfaxLombard is a subsidiary of Fairfax

Fairfax had total assets of about Canadian $35 billion Fairfax had total assets of about Canadian $35 billion Fairfax had total assets of about Canadian $35 billion Fairfax had total assets of about Canadian $35 billion and gross written premiums of over Canadian $8 and gross written premiums of over Canadian $8 and gross written premiums of over Canadian $8 and gross written premiums of over Canadian $8 billion in FY2002billion in FY2002billion in FY2002billion in FY2002

Holds 26% stake in ICICI LombardHolds 26% stake in ICICI LombardHolds 26% stake in ICICI LombardHolds 26% stake in ICICI Lombard

16

Market shareMarket shareMarket shareMarket share

21.721.721.721.7

16.716.716.716.7 16.116.116.116.1

13.813.813.813.8

15.515.515.515.5

16.216.216.216.2

30.330.330.330.3

16.816.816.816.8

5.85.85.85.8

15.315.315.315.3

16.516.516.516.5

15.315.315.315.3

Bajaj Allianz

Tata AIG

ICICI Lombard

Iffco Tokio

Reliance

Others

FY2002 (%)FY2002 (%)FY2002 (%)FY2002 (%) FY2003 (%)FY2003 (%)FY2003 (%)FY2003 (%)

Source: IRDA Journal

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Product mix in FY2003Product mix in FY2003Product mix in FY2003Product mix in FY2003

Public sectorPublic sectorPublic sectorPublic sector

Private sector*Private sector*Private sector*Private sector*

ICICI LombardICICI LombardICICI LombardICICI Lombard

TotalTotalTotalTotal

Fire & Fire & Fire & Fire & EnggEnggEnggEngg....

24.324.324.324.3

34.534.534.534.5

71.871.871.871.8

25.825.825.825.8

MarineMarineMarineMarine

8.78.78.78.7

6.66.66.66.6

4.24.24.24.2

8.48.48.48.4

MotorMotorMotorMotor

38.938.938.938.9

34.034.034.034.0

1.31.31.31.3

38.038.038.038.0

OthersOthersOthersOthers

28.128.128.128.1

24.924.924.924.9

22.722.722.722.7

27.827.827.827.8

TotalTotalTotalTotal

100.0100.0100.0100.0

100.0100.0100.0100.0

100.0100.0100.0100.0

100.0100.0100.0100.0*excludes ICICI Lombard

Focused on profitable segments such as fire & engineeringFocused on profitable segments such as fire & engineeringFocused on profitable segments such as fire & engineeringFocused on profitable segments such as fire & engineeringhaving low loss ratioshaving low loss ratioshaving low loss ratioshaving low loss ratios

Source: IRDA Journal

18

ReachReachReachReach

Presence in 38 locationsPresence in 38 locationsPresence in 38 locationsPresence in 38 locations

DelhiDelhiDelhiDelhi

A’badA’badA’badA’badBarodaBarodaBarodaBaroda

MumbaiMumbaiMumbaiMumbai

PunePunePunePune H’badH’badH’badH’bad

B’loreB’loreB’loreB’lore

CoimbatoreCoimbatoreCoimbatoreCoimbatore

KolkataKolkataKolkataKolkata

LudhianaLudhianaLudhianaLudhiana

BhubaneshwarBhubaneshwarBhubaneshwarBhubaneshwarNagpurNagpurNagpurNagpur

JaipurJaipurJaipurJaipur

CochinCochinCochinCochin

ChennaiChennaiChennaiChennai

ChandigarChandigarChandigarChandigarhhhh

IndoreIndoreIndoreIndoreBharucBharucBharucBharuc

hhhhSuratSuratSuratSurat AurangabadAurangabadAurangabadAurangabad

VizagVizagVizagVizag

UdaipurUdaipurUdaipurUdaipurJamshedpurJamshedpurJamshedpurJamshedpur GuwahatiGuwahatiGuwahatiGuwahati

AnandAnandAnandAnand BhopalBhopalBhopalBhopal

PanjimPanjimPanjimPanjim

RaipurRaipurRaipurRaipur

KanpurKanpurKanpurKanpurBhujBhujBhujBhuj

JalandharJalandharJalandharJalandhar

MaduraiMaduraiMaduraiMadurai

LucknoLucknoLucknoLucknowwww

RachiRachiRachiRachi

PatialaPatialaPatialaPatiala

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ReReReRe----insurance & claims settlementinsurance & claims settlementinsurance & claims settlementinsurance & claims settlement

Continued support of reinsurance majors Continued support of reinsurance majors Continued support of reinsurance majors Continued support of reinsurance majors including:including:including:including:

Munich Re (lead) Munich Re (lead) Munich Re (lead) Munich Re (lead) Swiss Re Swiss Re Swiss Re Swiss Re

Highest reinsurance commission income levels Highest reinsurance commission income levels Highest reinsurance commission income levels Highest reinsurance commission income levels amongst private insurers in India amongst private insurers in India amongst private insurers in India amongst private insurers in India TieTieTieTie----up with Cunningham Lindsey, world’s second up with Cunningham Lindsey, world’s second up with Cunningham Lindsey, world’s second up with Cunningham Lindsey, world’s second largest surveyors, for uniform and efficient claims largest surveyors, for uniform and efficient claims largest surveyors, for uniform and efficient claims largest surveyors, for uniform and efficient claims settlement practicessettlement practicessettlement practicessettlement practices

20

Financial performance in FY2003Financial performance in FY2003Financial performance in FY2003Financial performance in FY2003

Net premiumNet premiumNet premiumNet premium

Q1Q1Q1Q1----2004200420042004

PAT/ (Loss)PAT/ (Loss)PAT/ (Loss)PAT/ (Loss)

NetworthNetworthNetworthNetworth

ParticularsParticularsParticularsParticulars FY2003FY2003FY2003FY2003

(Rs. million)

141.6141.6141.6141.6

63.963.963.963.9

1,100.51,100.51,100.51,100.5

272.3272.3272.3272.3

33.033.033.033.0

1,036.21,036.21,036.21,036.2

Gross Written PremiumGross Written PremiumGross Written PremiumGross Written Premium 1,261.51,261.51,261.51,261.52,152.12,152.12,152.12,152.1

Underwriting resultUnderwriting resultUnderwriting resultUnderwriting result 11.411.411.411.4(107.1) (107.1) (107.1) (107.1)

21

Thank youThank youThank youThank you