#1Investor Presentation - 9M FY24 F शं TOTLE PRVA TOP PRIYAS HDFC ◉Life Sar utha ke jiyo!#22 Executive summary: 9M FY24 Revenue & Scale Profitability & Cost I 1. 2. $ Customer & Capital Growth 6% Individual % CY 26.5% ***** CY 86% New Business Margin (NBM) PY 26.5% + 13th month persistency PY 87% WRP Market Share 15.0% Rs (Bn.) 220.4 Renewal premium EO Growth 15% Value of New Business (VNB) Rs (Bn.) 22.7 Claim settlement ratio (FY23) Growth 5% Overall 99.7% Individual 99.3% Rs (Bn.) 2,797 AUM Growth 20% وفة Rs (Bn.) 11.6 FY23 35 Profit After Tax (PAT) Growth Complaints per 10K policies² 16% FY22 25 Rs (Bn.) 451.7 Dec'23 190% CY 19.6% IEV Total exp. ratio¹ Solvency Mar'23 203% EVOP 16.5% PY 19.4% Total Expense Ratio is calculated as total expenses (including commission) divided by total premium Complaints data (excluding survival and death claims). Complaints per 10K policies on merged basis for FY22: 40 HDFC Life#3Agenda 1 Performance Snapshot 2 Business Overview 3 Other Business Highlights 4 Life insurance in India#44 Consistent, predictable, sustained performance Holistic growth Consistent track record over multiple periods 55 New business premium >25x ~2X 291 150 Renewal premium 1.5x 2x 284 93 142 FY15 FY19 FY23 FY15 FY19 FY23 Protection new business¹ Annuity new business VNB FY19-23 >2X FY18-22 FY17-21 >2x >2x 36.7 26.8 21.9 15.4 12.8 9.2 84.4 >6x 40.4 2x 6.6 FY17 FY18 FY19 FY21 >2x 57.7 FY22 FY23 >8x 25.9 3.2 FY15 FY19 FY23 FY15 FY19 FY23 Embedded Value AUM 13M persistency² FY17-21 ~2X FY18-22 ~2X FY19-23 >2x 395 330 266 2,388 ~2X ~7PP ~2X ~7pp 87% 80% 183 1,256 152 73% 125 670 Mar 31, 2015 Mar 31, 2019 1. Based on Overall NBP 2. Excluding single premium FY15 FY19 FY23 FY17 FY18 FY19 FY21 FY22 FY23 Mar 31, 2023 Rs bn HDFC Life#5Consistent performance across business cycles Change in ULIP regulation Cap on charges No surrender charges Open architecture ■ Banks allowed to tie up with 3 insurers Loss of exclusivity at HDFC Bank Covid-19 pandemic Lockdown - Face to face communication disrupted Rise in claims I Change in ULIP tax exemption limit Tax exemption removed for policies Rs 2.5 lakh I Change in traditional savings tax exemption limit Tax exemption removed for policies Rs 5 lakh 112.6 29.6 FY11 NBM¹ 10.0% Indl WRP² growth 18% Overall industry -8% growth Note: Indl WRP in Rs bn 59.7 81.5 47.5 Diversified distribution Increase in new tie-ups 33.3 Shift to diversified product mix strategy • Growing proprietary - Scaling up of CP business Agency/Direct Consistent product innovation • • • Tech enablement - for faster claim settlement & policy issuance Prudent risk management Distribution expansion for tapping new markets - Exide Life M&A, increasing market share in new partnerships 1. New Business Margin 2. WRP: Weighted Received Premium 5 FY16 FY18 19.9% 23.2% 12% 31% 8% 19% FY20 FY22 FY23 25.9% 27.4% 27.6% 19% 16% 27% 6% 16% 19% Grew ~2 times industry between FY11-FY23 while sustaining profitability HDFC Life#66 Robust delivery across key metrics (1/2) Steady performance Individual WRP Individual NOP (in '000s) 15.0% Pvt. mkt share 15.8% Overall 10.3% 10.1% mkt share 9% Rs bn Sustained growth in credit protect business¹ 55% 46% 21% 77 72.4 764.6 53 68.3 701.5 34 9M FY23 9M FY24 9M FY23 9M FY24 YoY Growth Balanced product mix Total APE 4%. 7% 24% 15% 24% 27% 18% FY21 63 33 FY22 FY23 9M FY24 YoY Growth Focus on diversified channel mix² Total NBP 15% 10% Par 7% 6% 11% 6% 13% 14% 18% 20% 19% 19% 11% 13% 11% Non Par Savings ULIP 64% 61% 60% 56% 12% Protection Annuity Group Retirals FY21 FY22 FY23 9M FY24 34% ■Bancassurance ■ Direct ■ Agency ■Brokers and others 1. Based on credit protect new business premium 2. Based on Individual APE HDFC Life#7Robust delivery across key metrics (2/2) Stable Persistency 87% 52% 86% 54% 9M FY23 13th 61st 9M FY24 Strong growth in renewal premium 7 1. 15% 220.4 191.9 9M FY23 9M FY24 YoY Growth ☐ Focus on quality of business and providing superior customer experience Sustained VNB margins despite headwinds 26.5% 26.5% 22.7 21.6 9M FY23 9M FY24 ■NBM Rs bn Multiple pools of profitability contributing to VNB accretion ■ VNB growth of 5% over 9M FY23 Group assets under management of ~Rs 3.5 tn¹ 3,466 669 ☐ Backed by strong persistency and growing backbook 2,737 399 Group assets under management (AUM) includes AUM of HDFC Life and HDFC Pension (wholly owned subsidiary) 2,797 2,338 9M FY23 9M FY24 HDFC Life AUM HDFC Pension AUM HDFC Life Debt: Equity mix (9M FY24) - 67:33 HDFC Life#8Agenda 1 Performance Snapshot 2 Business Overview 3 Other Business Highlights 4 Life insurance in India#9Key elements of our strategy 1 2 3 4 Profitable growth Ensuring sustainable and profitable growth by identifying and tapping new profit pools Diversified distribution mix Developing multiple channels of growth to drive need-based selling & deepening penetration Customer first Creating superior product propositions and customer journeys, through consistent innovation Risk management & board governance Maintaining focus on risk management guided by an independent and competent Board 6 50 Future ready organisation: Leveraging technology, digital and analytics HDFC Life#10Accounting Economic Profit Focus on profitable growth Profit FY21 FY22 FY23 9M FY23 9M FY24 New business Margin 26.1% 27.4% 27.6% 26.5% 26.5% Value of new business 21.9 26.8 36.7 21.6 22.7 Profit after tax (PAT) 13.6 12.1 13.6 10.0 11.6 Underwriting profits 7.3 4.4 5.9 5.5 4.5 Shareholders' surplus 6.3 7.7 7.7 4.5 7.1 35.9 30.4 44.2 32.3 34.9 Underwriting profits breakup -25.0 -30.5 -38.3 -24.9 -31.4 10 Note: Numbers may not add up due to rounding off FY21 FY22 FY23 9M FY23 9M FY24 ■Backbook Surplus ■New Business Strain 18% YoY Growth Rs bn Profitable distribution Diversified growth first Customer management Risk mix & governance Analytics digital & Technology, HDFC Life#1111 Emergence of Existing Business (EB) Surplus Profit Emergence EB Surplus emergence as a % of VIF Traditional Savings (Longer Tenure) Protection (Ind+Grp) ULIP 0%-1% 20%-25% 20%-25% 30%-35% 55% - 60% 30%-35% 65%-70% 15%-20% 40%-45% ■0-5 years ■5-15 years ■> 15 years 25% 25 24% 24% 30 30 20% 19% 45 32 35 32 Shift in product profile to longer term savings over last 3-4 years ■ Profit emergence is higher for longer tenure products, albeit over a longer time frame 2 О 3/4th of profits emerge after 5 years FY19 FY20 FY21 EB (In Bn) FY22 EB as a % of VIF FY23 Higher mix of long term profitable products to result in profit emergence over longer time horizon Track record of positive operating variance indicates high likelihood of profit emergence as per assumptions Profitable distribution Diversified growth first Customer management Risk Technology, mix & governance Analytics digital & HDFC Life#12Analysis of change in IEV EVOP - 48.0 EVOP%¹ 16.5% - 11.9 3.4 22.7 1.3 24.1 395.3 Economic variances Dividend & VNB Operating variances Capital infusion Unwind 267.4 127.9 Adjusted Net worth (ANW) Value of in-force business (VIF) IEV As at Mar 31, 2023 Operating variance continues to be positive and in line with our assumptions 12 1. EVOP% calculated as annualised EVOP (Embedded Value Operating Profit) to Opening EV Rs bn 451.7 312.3 139.5 Profitable distribution Diversified growth first Customer mix & governance management Risk IEV As at Dec 31, 2023 digital & Technology, Analytics HDFC Life#13Diversified distribution mix Agency - segmented geographical growth 2 2L+ agents- second largest agency force amongst private life insurers¹ Segregating Growth (tier 1) and Focus (tier 2,3) markets with a micro market strategy Deepening penetration with agency partners Leveraging machine learning tech for partner engagement and increasing productivity HDFC Bank - Expansion in SURU markets >900 HDFC bank branches added in SURU (Semi-urban and Rural) locations in last 18 months Increasing penetration across all customer segments Sharper focus on cross-sell and up-sell to existing customers Profitable distribution Diversified growth first Customer management Risk mix & governance Analytics digital & Technology, Partnerships & Alliances ✡ Karnataka Bank KVB Karur Vysya Bank 13 1. 2. Smart way to bank > 90 banca partnerships- Focus on maintaining market share leadership at partner level Partnerships with Banks, NBFCs, SFBs, brokers, aggregators & digital ecosystems allow entry into new market segments (Recent tie-ups: Karur Vysya Bank & Karnataka Bank) Strong growth momentum across protection Based on 8MFY24 Digital Branches: Virtual branch for servicing customer requests remotely through dedicated app and webpage Direct/ Digital 498 physical branches and 48 digital branches² Leveraging analytics for cross-sell/upsell Simplifying and personalizing journeys to offer better customer experience to attract younger customers HDFC Life#14Agency - Scaling up for future growth Improving scale Agency APE (INR billion) Agency Share 11% 13% Number of Agents (000's) 20% Agency Rank 5th 4th 5.3 FY18 5 year CAGR - 34% 9.4 FY21 22.9 FY23 Fastest growing channel in last 5 years (4x growth) 3rd largest agency amongst private players¹ Based on FY23 2. Based on 9MFY24 3. Million Dollar Round Table 1. 14 77 5 year CAGR - 18% 112 3rd 179 Levers for future growth On-boarding high performing profiles - housewives, retired govt servants & financial distributors Higher proportion of protection and annuity Conscious market segmentation into focus and growth areas FY18 FY21 FY23 First ever M&A in India life insurance industry 10%² increase in MDRT3 agents Deepening penetration in Tier 1 cities through leadership in high potential pin codes Use AI to hyper personalize product offerings Profitable distribution Diversified growth first Customer management Risk Technology, digital & mix & governance Analytics HDFC Life#15Emerging tier 2/3 cities - The Bharat opportunity Profitable distribution Diversified Customer management Risk growth first mix & governance Our focus is to deepen our presence in tier 2 and 3 Contribution of tier 2 and 3 to HDFC Life APE 58% 65% FY21 9MFY24 On NOP basis, Tier II and III contributed to 3/4th of the business in 9MFY24 One of the first life insurers to have a dedicated vertical for tier 2/3 markets Higher focus on micro markets and increase penetration in tier 2/3 markets While ensuring that quality of business is maintained 13M persistency closer to org 86% 82-85% Tier 2,3 ATS closer to org ATS 95K 76-93K © Tier 2/3 Org Tier 2/3 Org Amongst top 3 brands¹ for tier 2/3 customers APE growth in tier 2/3 markets has been >2x company level growth Faster NOP growth in tier 2/3 markets during 9M And building capacity for future growth ☑ HDFC BANK 36,000+ Partner branches 495+ HDFC Life branches 345+ Partners comprising banks, NBFCs, MFIS, SFBs, brokers, new ecosystem partners Adding 75 new branches in tier 2/3 markets >75% of new agent addition in tier 2/3 markets Expansion strategy complementary to HDFC Bank's SURU expansion 15 1. Study by Ipsos digital & Technology, Analytics HDFC Life#16Our focus on core insurance proposition Protection (Individual + Group) trends Sum Assured (Individual + Group) trends Rs Bn. 29.4 FY18 35% FY18 23% CAGR 84.4 56.8 21% 69.0 4,734 FY23 9MFY23 9MFY24 FY18 ■ NBP Protection and Annuity as % of total NBP 1. Private industry 16 2. Based on 9MY24 39% 49% 52% FY21 FY23 9MFY24 NBP 3. Retail protection persistency 18% CAGR 11,041 7,117 38% 9,837 FY23 9MFY23 9MFY24 Offering embedded protection solutions based on customer orientation ■ Protection and annuity contribute >50% of NBP ■ Maintained #1 in overall sum assured² ■ Covered ~50 million lives in 9MFY24 ■ 13M persistency² of >90% over last 3 years Profitable distribution Diversified Customer management Risk Technology, digital & growth first mix & governance Analytics HDFC Life#17Protection Direct² Banca Product mix across key channels¹ Segment FY21 FY23 9M FY23 9M FY24 !UL 27% 24% 26% 36% I Par Non par savings 37% 30% 42% 27% 28% 27% 38% 27% Term 4% 3% 3% 4% I Annuity 2% 4% 4% 6% ¡UL 33% 27% I 20% 27% ¡Par 10% 13% I 17% 14% I Non par savings 22% 35% 32% 25% I ¡Term 15% 5% 3% 3% I I Annuity 20% 20% 28% 31% Company Brokers Agency I Segment !UL Par FY21 FY23 10% 10% 37% 9M FY23 9M FY24 11% 22% 33% 37% 33% Non par savings 39% 49% 42% 33% Term 11% 6% 7% 8% Annuity 3% 3% I 3% 4% 7 ¡UL 1% 1% I 1% 4% I ¡Par 53% 31% 44% 47% I Non par savings 42% 62% 46% 29% I ¡Term 4% 5% I 6% 16% I ¡Annuity 0% 2% | 3% 4% Segment FY21 FY23 9M FY23 9M FY24 UL 24% 19% I 21% 32% I I I Par 34% 27% I 29% 28% I I Non par savings 31% 45% 39% 28% ¦Term 7% 4% 4% 6% I I Annuity 5% 5% I 6% 7% I ୮ FY21 FY23 9M FY23 9M FY24 Based on Total APE 13% 13% 15% 15% I Based on NBP 20% 29% 30% 34% L 17 1. Based on Individual APE, Term includes health business. Percentages are rounded off 2. Includes business sourced through web aggregators for previous years Annuity Profitable distribution Diversified growth first Customer management Risk mix & governance Analytics digital & Technology, FY21 FY23 9M FY23 9M FY24 Based on Total APE 5% 6% I 8% 7% I Based on NBP 20% 20% 24% 18% HDFC Life#1818 Risk management & board governance Board Committees Management Committees/Councils 12 1. 2. Board of Directors Independent and experienced Board Audit Committee Risk Management Committee Investment Committee Policyholder Protection Committee Nomination & Remuneration Committee Corporate Social Responsibility Committee Stakeholders' Relationship Committee With Profits Committee Whistleblower Committee Investment Council Claims Review Risk Management Committee Compliance Council Council ALCO1 Credit Council Grievance Management Committee Information & Cyber Security Council Disciplinary Panel for Malpractices Prevention of Sexual Harassment Product Council Standalone councils Business and Innovation Technology Council Persistency Council Additional governance through Internal, Concurrent and Statutory auditors Asset Liability Management Council The above list of committees is illustrative and not exhaustive Capital Raising Committee Profitable distribution Diversified Customer management Risk growth first mix & governance Analytics digital & Technology, HDFC Life#19Financial risk management framework Natural hedges Protection and longevity businesses Unit linked and non par savings products Broad-basing of counter-parties for FRAS Product design & mix monitoring Prudent assumptions and pricing approach Return of premium annuity products (>95% of annuity); Average age at entry ~58 years Deferred as % of total annuity business < 30% with average deferment period <4 yrs Regular monitoring of interest rates and business mix ALM approach Target cash flow matching for non par savings plus group protection portfolio to manage non parallel shifts and convexity ■ Immunise overall portfolio to manage parallel shifts in yield curve (duration matching) Managing Risk Residual strategy External hedging instruments such as FRAS, IRFs, swaps amongst others Reinsurance FY23 9M FY24 Sensitivity Scenario Overall Non par 1 Overall Non par 1 EV VNB Margin EV Interest Rate +1% Interest Rate -1% (2.4%) 2.1% VNB Margin (1.5%) (2.2%) (2.2%) 0.7% 1.4% 0.9% EV -2.7% VNB Margin -1.4% EV -2.7% VNB Margin -2.4% 2.6% 0.8% 2.3% 1.0% 19 1. Comprises Non par savings (incl annuity) plus protection Sensitivity remains range-bound on the back of calibrated risk management ~99% of debt investments in Government bonds and AAA rated securities as on Dec 31, 2023 Profitable distribution Diversified Customer growth first management Risk Technology, digital & mix & governance Analytics HDFC Life#20Future ready organisation: Leveraging technology, digital and analytics 6 1 Accelerate JOURNEY SIMPLIFICATION across channels Fast track PARTNER INTEGRATION 2 3 SERVICE SIMPLIFICATION for connect and personalization 7 Connecting with startups through Create a digital scalable efficient Futurance¹ Architecture DATA LABS ECOSYSTEM for decision making 4 Building resilience.. 8 Enable a hybrid Work From Home environment 20 1. Futurance: A program to collaborate with startups for harnessing cutting-edge technology 5 PLATFORMS independent 6 buying / servicing Profitable growth mix distribution Diversified first Customer management Risk & governance Analytics digital & Technology, Strengthen Cyber Security for post-Covid world HDFC Life#21Harnessing Gen AI Capabilities In-house Generative AI platform with capabilities that can be leveraged across business processes ↑ 'API Ability to upload multiple documents and generate insights Secure and authenticated APIS, enabling seamless integration with other apps Key business use-cases developed: 1 Customer Interaction Summarizer Collates customer interactions across various touchpoints generates concise summaries faster service resolution 3 A built-in library of prompts to assists users 2 Illi 間 Strict data security protocols and deployment only on HDFC Life's VPC Report Analyzer Analyses multiple financial reports and provides key highlights and comparison of reports Pitch Generator Generates sales pitches for specific product which is personalized for a specific user persona Profitable distribution Diversified Customer growth first management Risk mix & governance Analytics digital & Technology, HDFC Life#22Platforms: Insta Insure Insurance platform to facilitate easier and faster onboarding of new-age customers Insta Insure is a streamlined and innovative solution designed to onboard eligible customers of our partners with a pre- approved sum insured with minimal underwriting 22 22 Key features From push notifications to on- demand Customers can now easily self- service; Automatic KYC and income verification Benefits End-to-end straight through journey for customers Ease of integration for partners Integration capabilities with partner services with adaptable front end Reduced TATS; faster issuance Multiple product offerings Trust in our customers • No physical medical checkup; No documentation/KYC required Adaptable frontend - Easy to integrate at any scale growth Profitable mix distribution Diversified Customer management Risk first & governance Analytics digital & Technology, HDFC Life#23Digital, scalable, efficient architecture: Project Inspire Future-ready digital transformation Reimagining our systems and processes by investing in new technologies and capabilities Envisioned tracks for transformation- moving towards execution Product configurator Enriched customer interactions Hyper- personalization Centralized communication CRM CRM Quality CoE Data Platforms оо 1000 mmm Human Resource Management Our end state Efficient customer & partner onboarding QQQ Data-driven recruitments Business Process Management Incentive & Commission Management Experiential hub Integration AI / ML driven Enhanced customer interactions ✓ productivity Automated issuance B 23 Completed Approaching completion Yet to start Customer 360 view Increased persistency & controls Profitable growth mix distribution Diversified first Customer & governance management Risk Analytics digital & Technology, HDFC Life#24Agenda 1 Performance Snapshot 2 Business Overview 3 Other Business Highlights 4 Life insurance in India#2525 Persistency trends for HDFC Life Across key channels 87% 79% 71% 67% 54% Agency Across key segments 87% 81% 74% 70% 56% 85% 78% 71% 68% 54% 86% 78% 69% 66% 58% Banca Direct ■13th month 25th month 37th month 49th month 61st month 81% 72% 65% 64% 49% CY (9M FY24) 86% 79% 73% 68% 54% Company PY (9M FY23) 91% 88% 87% 83% 78% 77% 73% 71% 64% 52% Savings (Traditional) Savings (UL) Protection Company 13th month ■25th month ■37th month ■49th month ■61st month HDFC Life#26Improving VNB trajectory 5% 0.6 1.0 0.1 22.7 21.6 (0.7) 9M FY23 Impact of higher APE Change in assumptions New business profile ' 1 Fixed cost absorption 9M FY24 0.0% 0.1% 0.7% -0.8% 26.5% NBM% 26.5% VNB Growth Note: Numbers may not add up due to rounding off Reflects the impact of difference in mix of segment/distribution channel/tenure/age/sum assured multiple etc VNB-Value of New Business; NBM - New Business Margin 1. 26 Rs bn HDFC Life#27Sensitivity analysis - H1FY24 Analysis based on key metrics Scenario Change in Reference rate Equity Market movement Change in VNB Margin 1 % Change in EV Increase by 1% -1.5% -2.8% Decrease by 1% 0.7% 2.7% Decrease by 10% -0.2% -1.4% Increase by 10% -0.5% -0.1% Persistency (Lapse rates) Decrease by 10% 0.5% 0.2% Increase by 10% -0.5% -0.8% Maintenance expenses Decrease by 10% 0.5% 0.8% Acquisition Expenses Increase by 10% -3.7% NA Decrease by 10% 3.7% ΝΑ Increase by 5% -1.6% -1.1% Mortality/Morbidity Tax rate² Decrease by 5% 1.6% 1.1% Increased to 25% -4.9% -9.0% 27 1. Post overrun total VNB for Individual and Group business 2. The tax rate is assumed to increase from 14.56% to 25% and hence all the currently taxed profits in policyholder/shareholder segments are taxed at a higher rate. It does not allow for the benefit of policyholder surplus being tax-exempt as was envisaged in the DTC Bill. HDFC Life#2828 Summary of Milliman report on our ALM approach Scope of review Assess appropriateness of ALM strategy to manage interest rate risk in non-par savings business Review sensitivity of value of assets and liabilities to changes in assumptions - FY23 Portfolios reviewed - ■ Portfolio 1: Savings and Protection All non-single premium non-par savings contracts and group protection products ■ Portfolio 2: All immediate and deferred annuities Description Interest rate scenarios Interest rate + Demographic scenarios 100% persistency and low interest rates Stress scenarios tested Parallel shifts/ shape changes in yield curve within +- 150 bps of March 31st 2023 Gsec yield curve Interest rate variation + changes in future persistency/ mortality experience Net asset liability position Changes by < 5.5% Changes by 9% 100% persistency with interest rates falling to 4% p.a. for next 5 years, 2% p.a for years 6 -10 and 0% thereafter Still remains positive Opinion and conclusion ALM strategy adopted for Portfolios 1 and 2 is appropriate to: ■ meet policyholder liability cash flows ☐ protect net asset-liability position thereby limiting impact on shareholder value 1. Opinion issued by Milliman Advisors LLP on ALM strategy (for non par business) based on FY23 disclosures HDFC Life#29ESG at a glance The 5 Pillars of ESG 1. Ethical Conduct & Governance 2. Responsible Investment 3. Diversity, Equity and Inclusion (DE&I) 4. Holistic Living 5. Sustainable Operations Environment Board approved Environment and Climate Change Policy Climate-related performance disclosed in accordance with the TCFD (Taskforce on Climate-related Financial Disclosures) recommendation Renewable energy consumption increased by ~55% (from 239.8 MWh in FY22 to 530.8 MWh in FY23) • Increased focus on Circularity and Digitisation for ensuring Sustainable operations (For detailed disclosures and KPIs, refer to the Integrated Annual Report FY 2022- 23) GHG emissions (Scope I, II & III): 14,994.18 tCO2e Social Launched Employee Resource Groups (ERGS) - Women in insurance, Life of Pride and Happiness at work to create a more inclusive workplace Formulated Health & Safety Policy to foster a culture of holistic well- being Women in workforce: 26.3% CSR contribution: Average hours of training per FTE: 60.2 19.5 crore No. of beneficiaries: 11.45 lakh UN SDGs covered: 14 of 17 Customer Satisfaction (CSAT) Score (weighted average of FY 2022-23): 90.7% Overall Claim Settlement Ratio: 99.7% Governance ESG governed by the Board CSR & ESG Committee and driven by the ESG Management Committee and cross functional teams ESG Governance Committee constituted under the investment team for integration of ESG factors in the fund management process and engagement with the investee companies Responsible Investment (RI) Policy and framework for integrating ESG issues into investment decisions Asset classes covered under RI: Equity and equity-related securities, Alternate Investment Funds (AIFS), Investment Trusts, Corporate Bonds & Government Securities Materiality Assessment conducted as per GRI Universal Standard 2021 Submitted 1st UN-PRI report (voluntary) for FY 2022-23 HDFC Life#3030 30 Financial and operational snapshot (1/2) Rs bn. 9M FY24 9M FY23 Growth FY23 FY22* FY21* New Business Premium (Indl. + Group) Renewal Premium (Indl. +Group) Total Premium Individual APE Overall APE 201.0 187.1 7% 290.9 241.5 201.1 220.4 191.9 15% 284.5 218.1 184.8 421.4 379.1 11% 575.3 459.6 385.8 72.7 68.7 6% 114.0 81.7 71.2 85.6 81.7 5% 133.4 97.6 83.7 Profit after Tax 11.6 10.0 16% 13.6 12.1 13.6 -Policyholder Surplus 4.5 5.5 -19% 5.9 4.4 7.3 - Shareholder Surplus 7.1 4.5 57% 7.7 7.7 6.3 Dividend Paid 4.1 3.6 14% 3.6 4.1 Assets Under Management 2,797.1 2,338.4 20% 2,387.8 2,041.7 1,738.4 Indian Embedded Value 451.7 377.0 20% 395.3 300.5 266.2 Net Worth (1) 137.8 126.0 9% 129.7 154.0 84.3 NB (Individual and Group segment) lives insured (Mn.) 49.6 45.5 9% 68.5 54.1 39.8 No. of Individual Policies (NB) sold (In 000s) 764.5 701.3 9% 1,054.1 915.1 982.0 1. Comprises share capital, share premium and accumulated profits/(losses) *Numbers exclude Exide life business HDFC Life#31Financial and operational snapshot (2/2) 1. 9M FY24 9M FY23 FY23 FY22* FY21* Overall New Business Margins (post overrun) Operating Return on EV 26.5% 26.5% 27.6% 27.4% 26.1% 16.5% 17.5% 19.7% 16.6% 18.5% Total Expenses (OpEx + Commission) / Total Premium 19.6% 19.4% 19.8% 16.5% 16.4% Return on Equity (1) 11.5% 11.9% 11.9% 10.1% 17.6% Solvency Ratio 190% 209% 203% 176% 201% Persistency (13M / 61M) Individual WRP Market Share (%) 86%/54% 15.0% 87%/52% 15.8% 87%/52% 16.5% 87%/54% 14.8% 85%/49% 15.5% Business Mix (%) - Product (UL/Non par savings/Annuity/Non par protection/Par) (2) - Indl Distribution (CA/Agency/Broker/Direct) (2) - Total Distribution (CA/Agency/Broker/Direct/Group) (3) - Share of protection business (Based on Indl APE) - Share of protection business (Based on Overall APE) Share of protection business (Based on NBP) 32/28/7/6/28 64/18/6/11 25/8/2/12/53 5.5% 15.0% 21/39/6/4/29 19/45/5/4/27 26/33/5/6/30 24/31/5/7/34 59/18/9/15 56/20/11/13 60/14/6/19 61/13/7/19 25/8/3/14/49 25/9/4/13/49 24/6/2/16/52 25/6/2/17/50 4.3% 4.1% 5.6% 6.8% 14.8% 13.3% 13.6% 12.8% 34.3% 30.4% 29.0% 24.0% 19.6% Calculated using net profit and average net worth for the period (Net worth comprises Share capital, Share premium and Accumulated profits). Opening networth for FY23 has been adjusted in line with the scheme of merger approved by the court HDFC 2. Based on individual APE. UL: Unit Linked, Trad: Traditional, Par: Participating & CA: Corporate Agents. Percentages are rounded off 3. 31 Based on total new business premium including group. Percentages are rounded off *Numbers exclude Exide life business Life#32Segment wise average term and age¹ Average Policy Term excluding annuity (Yrs) 9M FY24: 23.2 (9M FY23: 22.8) 32 32 14 UL 12 36 Par 37 Non-par Health 17 17 14 Non-par Savings 13 Non-par Protection 36 33 Non-par Pension 13 14 34 9M FY24 9M FY23 Average Customer Age excluding annuity (Yrs) 9M FY24: 36.1 (9M FY23: 35.5) 37 UL 37 35 Par 33 32 Non-par Health 32 38 Non-par Savings 38 Non-par Protection 34 34 Non-par Pension 48 53 9M FY24 9M FY23 Focus on long term insurance solutions, reflected in terms of long policy tenure ■ Extensive product solutions catering customer needs across life cycles from young age to relatively older population 1. Based on individual new business policies (excluding annuity) HDFC Life#33Consistently outpacing industry and gaining market share¹ HDFC Life Growth HDFC Life market share trend 19% 17% 27% 27% Pvt. mkt 5% 8% 22% 24% growth Overall 6% 3% 16% 19% Industry growth 33 12.5% 14.2% 15.5% 16.1% 16.5% 10.8% 10.1% 9.2% 8.1% 7.2% FY19 FY20 FY21 FY22 FY23 ■Private Industry Overall Industry 1. Market share in terms of individual WRP Note: FY22 and FY23 individual WRP numbers are including Exide Life Delivered strong performance across all metrics while increasing market share between FY19 and FY23 ✓ Overall market share gain of 1.5x from 7.2% in FY19 to 10.8% in FY23 Consistently grew faster than overall and private industry between FY19 and FY23 ✓ Grown higher than overall industry in H1 FY24 Continually ranked #1 in group business amongst private players over the last 5 years HDFC Life#34Agenda 1 Performance Snapshot 2 Business Overview 3 Other Business Highlights 4 Life insurance in India#35Rising affluence - India poised for sustainable growth Fifth largest and fastest growing economy India's GDP (in USD)1 Took 67 years to reach first trillion 8 years to add another trillion And just 5 years to add third trillion! 46% 165 mn households 30% 91 mn households 1 tn 2 tn 3.5 tn India's middle income segment as % of all households³ 2020 2030 • Investment in physical and digital building blocks to further drive growth 1.45 lakh kms Total length of National Highways, an increase of 59% in past 9 years4 2nd largest road network after USA UPI UNIFIED PAYMENTS INTERFACE 74 bn Transactions worth Rs 1.3 bn processed via UPI in calendar year 2022, fastest growth in tier 2 and 3 Demographic dividend- youngest economy¹ India's per capita income "At average age of 29 years, India to remain the youngest economy till 2070" USD 4,000 USD 2,450 • $ 808 Total PLI outlay of >$26bn GFCF6 to be >30% over the next 5 years5 India surpassed Q2 growth expectations, growing by 7.6%. Expected to be third largest economy by 20302 1. Invest India 2. MOSPI; S&P Global Market Intelligence 3. 4. 35 5. CLSA, NDTV Profit 123456 2023 2030 India's per capita income is likely to grow by nearly 70% by 20304 People Research on India's Consumer Economy (PRICE); average size of an household is 4.4 as in 2021 Standard Chartered Bank Gross Fixed Capital Formation across sectors and • Capex distributed evenly Bank credit to be 60% of GDP by FY30 from 50% currently5 geographies5 The government will boost capital investment outlay by 33% to $120bn in FY24 HDFC Life#36Hong Kong Taiwan Singapore 19.2% 14.0% 7.6% Japan 5.8% 4.0% 3.4% 3.2% Malaysia Thailand India China 2.4% 8,433 Growth opportunity: Under-penetration and favorable demographics Life Insurance penetration¹ (FY 2022) Life Insurance density US$ 2 (FY 2022) Hong Kong Singapore Taiwan 5,414 Population composition (bn) 1.4 Household distribution by income 1.6 1.7 256 286 321 385 7% 10% 15% 1% 2% 3% 9% 16% 21% 32% 47% Japan 3,772 2,347 444 246 253 69 58% 61% 59% 83% 76% 65% 35% 29% 26% 44% 2021 2035 2050 FY12 E FY17 E FY22 E FY30 P <Rs 0.2 mn Rs 0.21 mn > Rs 1 mn Less than 20 years 20-64 years ■65 years and above Number of Households (In mn) 1. Penetration as measured by premiums as % of GDP, 2. Density defined as the ratio of premium underwritten in a given year to the total population 36 Source: Swiss Re, MOSPI, United Nations World Populations Prospects Report (2022), CRISIL "The big shift in financialization" report 2022 Malaysia Thailand China India India remains vastly under-insured, both in terms of penetration and density Huge opportunity to penetrate the underserviced segments, with evolution of the life insurance distribution model India's insurable population estimated to be at 1 bn by 2035 Number of middle income households is expected to almost double to 181 mn between FY22 and FY30 o High proportion of this increase is expected to come from semi-urban and rural areas HDFC Life#37☐ 37 Low levels of penetration: Life protection 91.0% Protection gap (2019) ¹ Sum Assured as a % of GDP 2 332% 3 Trend of retail loans (Rs Tn.) 64 44 53 34 252% 251% السلا 24 17 127% 85% 62% 153% 143% 41.0% 74.0% 71.0% 70.0% 61.0% 55.0% 23% India Malaysia Thailand China Japan Singapore Hong Kong Singapore Japan USA Malaysia Thailand South Korea India FY14 FY16 FY18 FY20 FY22 FY23 Embedded SA India has the highest protection gap in the region Savings and life insurance coverage growth lagged economic and wage growth Protection gap growth rate to grow at ~4% per annum Protection SA ■ India has the lowest sum assured (SA) as a % of GDP amongst its peers opportunity for protection growth in life insurance due to: o Rising middle income, 。 Increasing financial literacy о Limited life cover represents 1. Swiss Re. India's protection gap is as of CY22 2. Jefferies "Composite Insurance License in India: Taking a Leaf from Global Experience" report 2022 3. Kotak institutional equities Retail credit has grown at a CAGR of 16% over last 10 years ■ Credit life need would be spurred by: o increasing retail indebtedness 。 Increasing attachment rates o Increasing value penetration, Growing lines of business HDFC Life#3838 Macro opportunity: Retiral solutions India's pension market is under-penetrated at 3% of GDP 2 India's retirement savings gap to grow annually by 10% to reach ~$96Tn in 2050 146.2 128.2 2050 retirement savings gap ($ Tn.) 98.3 90.1 54.0 31.3 3.0 India Japan Hong Kong Canada USA 95.7 32.4 24.3 16.4 9.6 Australia China India UK Japan Canada Australia Elderly population is expected to increase 2.5x by 2050 Ageing population 95 161 248 7% 10% 15% 58% 61% 59% 35% 2021 29% 2035 26% Improvements in life expectancy will lead to an average post-retirement period of 20 years Average household size has decreased from 4.6 in 2001 to 3.9 in 2018 ■ Total Pension AUM is expected to grow to Rs 118 Tn by 2030 (about 1/4th accounted by NPS) Mandatory schemes to increase coverage for both unorganized and organized sectors 2050 Age <20 Yrs Age 20-64 Yrs Age >65 Yrs Number of people aged >60 years (In mn) Source: Swiss Re: A Retirement lifeline (2023), OECD (2021), Milliman Asia Retirement Report 2017, Survey by NSSO, MOSPI, United Nations World Populations Prospects Report (2022) 1. Comprising pension assets/funds 2. Retirement savings gap = Desired retirement income (i.e. 70% of pre-retirement annual income) - Actual income (i.e. social security benefits + employer benefits + personal savings) HDFC Life#39Government bond auctions Government Bonds - Tenorwise Issuance 21% 29% 27% 28% 29% 38% 35% 35% 34% 79% 71% 73% 72% 71% 65% 65% 66% 62% FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 H1FY24 ■<=15 yrs ■>15 yrs FY16 FY17 FY18 FY19 FY20 <=15 yrs 3,66,500 3,73,525 4,97,579 3,82,941 4,44,000 FY21 10,01,835 FY22 FY23 9M FY24 8,48,000 10,04,000 8,47,000 >15 yrs 2,25,000 1,54,520 Total 5,91,500 5,28,045 1,80,529 6,78,108 2,04,000 5,86,941 2,38,000 6,82,000 2,65,575 3,31,000 4,01,000 4,29,000 12,67,410 11,79,000 14,05,000 12,76,000 Auction of >15 year maturity bonds has been ~25-30% on an average which facilitates writing annuity business at scale Budget estimate of gross government borrowing for FY24 is at Rs 15.4 trillion Source: CCIL & National Statistics Office, Union Budget, RBI 39 Rs cr HDFC Life#40Industry new business trends 684 1 Product mix 68% 61% 57% 51% 51% 49% 49% 43% 39% 32% Individual WRP in Rs bn 483 452 401 356 305 287 291 245 233 200 208 FY15 FY17 FY19 FY21 FY23 ■Unit Linked ■Conventional Distribution mix 2 9% 10% 14% FY15 FY17 FY19 FY21 FY23 9M FY24 5% 3% 3% 16% 15% 3% 5% Private Players ■LIC Private players Market share 50% 57% 58% 58% 57% 49% 54% 58% 60% 66% 67% Growth % Private 36% 16% 26% 12% 8% 24% 11% 30% 25% LIC -27% 15% 5% -3% 9% 0% FY15 FY17 FY19 Overall -11% 21% 9% 3% 19% 7% 23% 23% FY21 ■ Direct FY23 40 Private sector remained at higher market share than LIC FY16 onwards Amongst private insurers, insurers with a strong bancassurance platform continue to gain market share Source: IRDAI and Life Insurance Council; 1. Based on Overall WRP (Individual and Group) for all private players 2. Based on Individual New business premia for all private players Agency ■Bancassurance ■Brokers Product mix has recently moved towards conventional business for the private players with high focus on non-par savings, protection Banca sourced business continues to dominate the channel mix on the back of increasing reach of banks along with increase in share of direct channel HDFC Life#4141 Life Insurance: A preferred savings instrument Household savings composition Financial savings mix 2% 26% 21% 24% 23% 24% 5% 9% 9% 7% 2% 15% 9% 7% 8% 19% 17% 18% 22% 22% 18% 48% 51% 52% 54% 59% 17% 18% 18% 67% 56% 48% 52% 42% 45% 49% 48% 46% 41% FY13 FY16 FY19 FY22 FY23 ■Gross financial savings ■Physical savings FY13 ■Currency & deposits FY16 FY19 FY22 ■Insurance ■ Pension ■Shares & debentures FY23 ■Small savings Household savings as % of GDP Increasing preference towards financial savings with increasing financial literacy within the population ■ Various government initiatives to promote financial inclusion: Implementation of JAM trinity. Deposits in PMJDY accounts nearly doubled in 4 years from INR 0.96 Tn to INR 1.95 Tn о Nearly 90% of people in the country have a bank account, without any sharp urban-rural divide Launch of affordable PMJJBY and PMSBY social insurance schemes Atal Pension Yojana promoting pension in unorganized sector Source: Motilal Oswal Financial Savings Update Sep '23, RBI Annual Report, Invest India HDFC Life#42Disclaimer This presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase any securities ("Securities") of HDFC Life Insurance Company Limited ("HDFC Life" or the "Company") in India, the United States, Canada, the People's Republic of China, Japan or any other jurisdiction. This presentation is not for publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia). The securities of the Company may not be offered or sold in the United States in the absence of registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register any securities in the United States. You confirm that you are either: (i) a "qualified institutional buyer" as defined in Rule 144A under the U.S. Securities Act of 1933, as amended, or (ii) outside the United States. By receiving this presentation, you are agreeing to be bound by the foregoing and below restrictions. Any failure to comply with these restrictions will constitute a violation of applicable securities laws. This presentation should not, nor should anything contained in it, form the basis of, or be relied upon in any connection with any contract or commitment whatsoever. The information contained in this presentation is strictly confidential and is intended solely for your reference and shall not be reproduced (in whole or in part), retransmitted, summarized or distributed to any other persons without Company's prior written consent. The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify you or any person of such revision or changes. This presentation may contain forward-looking statements that involve risks and uncertainties. Forward-looking statements are based on certain assumptions and expectations of future events. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Although Company believes that such forward-looking statements are based on reasonable assumptions, it can give no assurance that your expectations will be met. Representative examples of factors that could affect the accuracy of forward-looking statements include (without limitation) the condition of and changes in India's political and economic status, government policies, applicable laws, the insurance sector in India, international and domestic events having a bearing on Company's business, particularly in regard to the regulatory changes that are applicable to the life insurance sector in India, and such other factors beyond our control. You are cautioned not to place undue reliance on these forward-looking statements, which are based on knowledge, experience and current view of Company's management based on relevant facts and circumstances. The data herein with respect to HDFC Life is based on a number of assumptions, and is subject to a number of known and unknown risks, which may cause HDFC Life's actual results or performance to differ materially from any projected future results or performance expressed or implied by such statements. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Company's control. Past performance is not a reliable indication of future performance. This presentation has been prepared by the Company. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of Company or any of its directors, officers, employees, agents or advisers, or any of their respective affiliates, advisers or representatives, undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise and none of them shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. Further, nothing in this presentation should be construed as constituting legal, business, tax or financial advice or a recommendation regarding the securities. Before acting on any information you should consider the appropriateness of the information having regard to these matters, and in particular, you should seek independent financial advice. 42 42 HDFC Life#43Thank You FY23 Annual Report FY23 ESG Report 23 YEARS Protecting India with Pride 9MFY24 ESG Deck Sustainability Factsheet HDFC Life