#1Investor Presentation - Q1 FY24 F शं TOTLE PRVA TOP PRIYAS HDFC ◉Life Sar utha ke jiyo!#22 Executive summary: Q1 FY24 Revenue & Scale Profitability & Cost $ Customer & Capital Growth 12% Individual % CY 26.2% ***** CY 87% New Business Margin (NBM)¹ PY 25.1% + 13th month persistency PY 87% WRP Market Share 16.4% Rs (Bn.) 58.0 Rs (Bn.) 6.1 Renewal premium VNB1 Growth 14% Growth 18% Claim settlement ratio (FY23) Overall 99.7% Individual 99.3% Rs (Bn.) 2,533 Rs (Bn.) 4.2 FY23 35 AUM Growth 19% Profit After Tax (PAT) Complaints per 10K policies³ Growth 15% FY22 25 Rs (Bn.) 418.4 Jun'23 200% CY 19.8% IEV EVOP 16.0% Total exp. ratio² Solvency4 Mar'23 203% PY 19.6% 1. 2. 3. 4. VNB and NBM for the pre-merger entity (excl. Exide Life) in Q1 FY23 was Rs 5.1 Bn and 26.8% respectively 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 Excludes impact of proposed final dividend of Rs 4.1 bn, to be paid in Q2 FY24 (subject to shareholders' approval) Note: Q1 FY23 metrics across the presentation are on a merged basis and comparable to Q1 FY24 metrics 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 FY15 FY19 FY23 FY17 FY18 FY19 FY21 FY22 FY23 Mar 31, 2015 Mar 31, 2019 Mar 31, 2023 12 1. 2. Based on Overall NBP Excluding single premium 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 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 growth -8% 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 5 1. New Business Margin 2. WRP: Weighted Received Premium 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 Consistently 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 12.5% 14.2% 15.5% 16.1% 10.1% 9.2% 8.1% 7.2% 16.5% 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 10.8% Consistently grew faster than overall and private industry between FY19 and FY23 Grown higher than private industry in Q1 FY24 ■ Continually ranked #1 in group business amongst private players over the last 5 years HDFC Life#7Robust delivery across key metrics (1/2) Sustained performance Individual WRP Pvt. mkt share 15.8% YOY growth Individual NOP (in '000s) 16.4% 12% 19.0 16.9 Q1 FY23 Balanced product mix Total APE 18% 190.6 Strong CP volumes on the back of higher disbursements¹ Rs bn -19% 55% 46% 37% 9% 77.4 206.9 53.0 34.2 Q1 FY24 Q1 FY23 Q1 FY24 YoY Growth FY21 FY22 19.6 FY23 Q1 FY24 YoY Growth Focus on diversified channel mix² Total NBP 4% 8% 9% 16% 21% Par 7% 6% 11% 8% 13% 14% 20% 20% 19% 19% 12% 13% 11% Non Par Savings 9% ULIP 61% 19% 27% 21% 60% 56% 61% Protection Annuity 37% Group Retirals FY21 FY22 FY23 ■Bancassurance ■Direct ■Agency 1. Based on Credit Protect new business premium Based on Individual APE Note: Q1 FY24 and Q1 FY23 growth numbers have been computed after factoring in Exide Life WRP in the prior period 2. 7 Q1 FY24 ■Brokers and others HDFC Life#8Robust delivery across key metrics (2/2) Stable Persistency 87% 52% Q1 FY23 87% 53% Q1 FY24 ■13th 61st Strong growth in renewal premium 1. 2. 12 8 ☐ Focus on quality of business and providing superior customer experience Rs bn Strong VNB growth along with steady margin expansion 25.1% 26.2% 6.1 5.2 Q1 FY231 Q1 FY24 NBM Multiple pools of profitability contributing to VNB accretion ■ VNB growth of 18% over Q1 FY23 Group assets under management of > Rs 3 tn² 14% ■ Backed by strong persistency and growing backbook 530 301 2,533 2,134 58.0 51.0 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 HDFC Life Debt: Equity mix (Q1 FY24) - 68:32 YoY Growth VNB and NBM for the pre-merger entity (excl. Exide Life) in Q1 FY23 was Rs 5.1 Bn and 26.8% respectively Group assets under management (AUM) includes AUM of HDFC Life and HDFC Pension (subsidiary) HDFC Life AUM HDFC Pension AUM HDFC Life#9Agenda 1 Performance Snapshot 2 Business Overview 3 Other Business Highlights 4 Life insurance in India#10Key elements of our strategy 10 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 50 Future ready organisation: Leveraging technology, digital and analytics HDFC Life#11Profit Accounting Economic Profit Focus on profitable growth FY21 FY22 FY23 Q1 FY23 Q1 FY24 Rs bn New business Margin 26.1% 27.4% 27.6% 25.1% 26.2% Value of new business 21.9 26.8 36.7 5.2 6.1 Profit after tax (PAT) 13.6 12.1 13.6 3.6 4.2 Underwriting profits 7.3 4.4 5.9 2.4 2.1 Shareholders' surplus 6.3 7.7 7.7 1.2 2.0 44.2 32.3 34.9 12.0 10.1 19% YoY Growth Underwriting profits breakup -25.0 -7.7 -30.5 -9.9 -38.3 Note: Numbers may not add up due to rounding off 11 FY21 FY22 FY23 Q1 FY23 Q1 FY24 ■Backbook Surplus ■New Business Strain Profitable distribution Diversified Customer management Risk growth first mix & governance Analytics digital & Technology, HDFC Life#1212 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% - 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#13Analysis of change in IEV EVOP 15.0 EVOP%¹ 16.0% - Rs bn 283.8 1.0 8.1 0.1 418.4 7.9 6.1 395.3 ESOPS VNB Unwind Operating variances Economic variances 267.4 127.8 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 1. 13 EVOP% calculated as annualised EVOP (Embedded Value Operating Profit) to Opening EV 134.7 IEV Profitable distribution Diversified Customer management Risk growth first mix & governance As at Jun 30, 2023 digital & Technology, Analytics HDFC Life#1414 Diversified distribution enabled by multiple levers Proprietary¹ 1.9L+ Agents Banks, NBFCs, SFBS and Other CAS HDFC BANK YES BANK IDFC FIRST Bank Saraswat Bank AU FINANCE AU SMALL BANK 483 Branches 48 Digital Branches² The Saraswat Co-operative Bark Ltd. (A Scheduled Bank) MUJJIVAN UJJIVAN SMALL FINANCE BANK b RBL BANK www.hdfclife.com HDFC Life App Brokers, Aggregators & New Ecosystems HDFC securities turtlemint MOTILAL OSWAL Investment Services BLUECHIP EXPERT ADVICE. EASY INVESTING पे PhonePe Utkarsh Small Finance Bank Aapki Ummeed Ka Khaata DCB BANK AXIS BANK SURYODAY A BANK OF SMILES HDB FINANCIAL policy bazaar Compare. Buy. Save. com ICICI Securities Bajaj Capital ZERODHA HDFC SALES SOUTH INDIAN Bank Bandhan equitas Bank S Union Bank of Ande Exuitar Small Finance Bank Fusion Microfinance StockHolding BAJAJ FINANCE LIMITED THE COSMOS CO-OP BANK LTD. Π (Multistate Scheduled Bank) Enriching fel Muthoot HeroFinCorp. MICROFIN BHARAT Financial Inclusion Ltd Prayaas se pragati Fullerton India B nabbfins A 100% subsidiary of Indusind Bank Limited HOUSING IIFL HOME LOAN SHRIRAM HOUSING FINANCE pnb Housing Finance Limited #UNITY Small Finance Aavas FINANCIERS LTD SAPNE AAPKE, SAATH HAMAARA W ASIRVA TATA Motorsfinance driven by trust 1. Proprietary channels include Agency, Direct and Online 2. Digital Branches: Virtual branch for servicing customer requests remotely through dedicated app and webpage Proprietary¹ Brokers and aggregators Bancassurance 12% YoY increase in new agent licenses Highest agent additions in last FY ~900 new HDFC Bank branches added in SURU locations in last 12 months >70 banca partnerships Focus on expansion in tier 2 and 3 markets Profitable distribution Diversified growth First Customer management Risk Technology mix & governance Analytics digital & Best in class 13M persistency of >90% HDFC Life#1515 Diversified distribution mix growth strategy • • • • • Agency Segregating Growth (tier 1) and Focus (tier 2/3) markets Developing micro market strategy Focus on improving agent productivity across all markets Bancassurance Increasing penetration across all customer segments HDFC Bank: Expanding in SURU (Semi-urban and rural) markets Sharper focus on cross-sell and up-sell to existing customers ₹ S 1++ 8&E T • • • Other Key Alliances Gained significant experience of working in multi-tie Tie-ups with partners with stronger presence in non-metros and various other Small Finance Banks allows entry into new market segments Strong growth momentum across multiple partners Direct/ Digital Leveraging analytics for cross- sell/upsell ⚫ Simplifying and personalizing journey to offer better experience and attract younger customers Partnering with start-ups through • Futurance program Profitable distribution Diversified Technology growth First Customer mix & governance Analytics digital & management Risk HDFC Life#16Product mix across key channels¹ Direct/ Online³ Banca 2 Q1 Q1 Segment ¦UL FY21 FY23 FY23 FY24 27% 24% 30% I 32% ¦Par 37% 27% 30% 26% Non par savings 30% 42% 33% 30% I I Term 4% 3% 4% 5% I Annuity 2% 4% I 3% 8% ¡UL 33% 27% I 22% 32% I ¡Par 10% 13% I 17% 11% I I I Non par savings 22% 35% I 36% I ¡Term 15% 5% 4% 25% I 6% I I I Annuity 20% 20% 21% 25% Q1 Q1 Segment FY21 FY23 FY23 FY24 Agency UL 10% 10% I 12% 12% ¦Par 37% 33% 41% 32% Non par savings 39% 49% 36% 44% I Term 11% 6% 8% 8% I I Annuity 3% 3% I 3% 5% UL 1% 1% I 2% 2% I Brokers ¡Par 53% 31% 59% 40% I I Non par savings 42% 62% I 32% 37% I I ¡Term 4% 5% I 6% 14% I ¡Annuity 0% 2% I 2% 6% Q1 Q1 Segment FY21 FY23 FY23 FY24 Company ¦UL 24% 19% 23% 25% Par 34% 27% 33% 26% Non par savings 31% 45% 34% 33% Term 7% 4% 5% 6% Annuity 5% 5% 6% 9% Profitable distribution Diversified Customer growth First mix & governance management Risk Protection Q1 Q1 FY21 FY23 FY23 FY24 Based on Total APE 13% 13% 17% 18% I Based on NBP 20% 29% 32% 37% L FY21 FY23 Annuity Q1 FY23 Q1 FY24 Based on Total APE 5% 6% | 7% 9% Analytics I digital & Technology, Based on NBP 20% 20% 22% 19% HDFC 1. Based on Individual APE, Term includes health business. Percentages are rounded off. Current year numbers are on a merged basis, hence prior years are not comparable 2. Includes banks, other corporate agents and online business sourced through banks / corporate agents 16 3. Includes business sourced through own website and web aggregators Life#1717 Governance Framework Board Committees Management Committees/Councils Board of Directors Independent and experienced Board Audit Committee Risk Management Committee Policyholder Investment Committee 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 1. 12 Asset Liability Management Council 2. The above list of committees is illustrative and not exhaustive Capital Raising Committee Profitable distribution Diversified Customer growth first management Risk mix & governance Analytics digital & Technology, HDFC Life#18Financial 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 Q1 FY24 Sensitivity Scenario Overall EV EV EV Interest Rate +1% Interest Rate -1% (2.4%) 2.1% Non par 1 VNB VNB VNB VNB Margin Margin Margin Margin (1.5%) (2.2%) (2.2%) (2.3%) (1.5%) (2.1%) (2.3%) 0.7% 1.4% 0.9% 2.0% 0.7% 1.4% 0.8% Sensitivity remains range-bound on the back of calibrated risk management Overall Non par 1 EV Around 99% of debt investments in Government bonds and AAA rated securities as on June 30, 2023 18 1. Comprises Non par savings (incl annuity) plus protection Profitable distribution Diversified Customer management Risk Technology, digital & growth first mix & governance Analytics HDFC Life#19Aligned to make life simpler for customers 1 Accelerate JOURNEY SIMPLIFICATION across channels Fast track PARTNER INTEGRATION 2 3 SERVICE SIMPLIFICATION for connect and personalization 6 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 19 1. Futurance: A program to collaborate with startups for harnessing cutting-edge technology 5 PLATFORMS independent buying / servicing 6 growth Profitable mix distribution Diversified first Customer management Risk & governance Analytics digital & Technology, Strengthen Cyber Security for post-Covid world HDFC Life#2020 Journey Simplification: Easier customer journey via digital integrations HDFC Life Sarutha ke jiyo! Insta Check Info → Check financial and medical eligibility instantly Check Eligibility Check Eligibility + Premium Check + All inclusive Eligibility+Premium+Medical OR Upload and Fetch documents here > Upload/Fetch Documents > Instacheck: Easing customer journey by document collection and eligibility check at quote level itself asa] Improve customer experience and reduce the TATS by minimizing the requirements raised during UW process At quote level, conducting • • Financial and medical eligibility- upfronting the requirements to reduce back and forth Integrating with third-party entities (account aggregators, CKYC, ITR portal) to fetch and upload the documents with minimal friction Designed as open APIs to be integrated into any product/ journey and can be extended to partners too Profitable distribution Diversified Risk Technology, growth first Customer management digital & mix & governance Analytics HDFC Life#21Project Inspire: 'Future Proofing' HDFC Life 01 'Digitally-enabled' Distribution 02 Improved customer- centricity 03 in Operational efficiency 04 Organizational agility Profitable distribution Diversified growth first Customer mix & governance management Risk Seamless onboarding of distribution partners and simplifying customer Journey Intermediary enablement For enriched customer interactions Data-driven intermediary recruitment Evolution from customer service to experience and engagement hub An immersive & experiential platform with 360 view of customer Customer service ☐ Use artificial intelligence/ natural language processing for enhanced customer service Cross-sell, up-sell and persistency management Cognitive computing for positive nudges at pre-decision stage itself Straight through processing/over the counter sales percentage increase: Better data capabilities leading to faster underwriting AR/VR Enabled learning Simulation-based, on-demand and outcome oriented Future-of-work ready Digital enablers to shorten time to market Agile operating model Improved governance mechanism with quicker turnaround times 21 Developing new set of capabilities to sustain our competitive advantage Analytics digital & Technology, HDFC Life#22Agenda 1 Performance Snapshot 2 Business Overview 3 Other Business Highlights 4 Life insurance in India#2323 Persistency trends for HDFC Life Across key channels (%) 88 78 72 64 54 Agency Across key segments (%) 88 81 75 64 56 Savings (Traditional) 86 78 71 67 62 53 90 00 83 78 65 65 Banca Direct ■13th month 25th month 37th month 49th month 61st month 32 82 71 65 65 49 49 92 42 87 44 57 88 87 79 19 CY (Q1 FY24) 73 65 Company PY (Q1 FY23) 82 87 82 78 76 74 67 40 Savings (UL) Protection ■13th month ■25th month ■37th month ■49th month ■61st month Company 53 63 52 62 HDFC Life#2424 VNB and NBM walkthrough Including Exide Life in Q1 FY23 base 5.2 Rs bn 6.1 0.7 0.0 0.1 0.1 Q1 FY23 25.1% Impact of higher APE Change in assumptions 0.0% 0.1% New Business Profile¹ 0.5% Fixed cost absorption 0.5% Q1 FY24 26.2% NBM% Excluding Exide Life in Q1 FY23 base NBM% 5.1 1.1 0.0 0.1 0.3 6.1 Q1 FY23 Impact of higher APE Change in assumptions New Business Profile1 Fixed cost absorption Q1 FY24 26.8% 0.0% 0.1% 0.4% -1.1% 1. Reflects the impact of difference in mix of segment/distribution channel/tenure/age/sum assured multiple etc Note: VNB - Value of New Business; NBM - New Business Margin; Numbers may not add up due to rounding off 26.2% HDFC Life#25Sensitivity analysis - FY23 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% -2.4% Decrease by 1% 0.7% 2.1% Decrease by 10% -0.1% -1.3% Increase by 10% -0.3% -0.3% Persistency (Lapse rates) Decrease by 10% 0.3% 0.3% Increase by 10% -0.5% -0.8% Maintenance expenses Decrease by 10% 0.5% 0.8% Acquisition Expenses Increase by 10% -3.9% ΝΑ Decrease by 10% 3.9% ΝΑ Increase by 5% -1.4% -1.1% Mortality/Morbidity Tax rate² Decrease by 5% 1.4% 1.1% Increased to 25% -5.8% -8.9% 25 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#2626 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#27ESG 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) Social Launched Employee Resource Groups - (ERGS) Women in insurance, Life of Pride and Happiness at work to create a more inclusive workplace Women in workforce: Average hours of training per FTE: 26.3% 11.45 lakh • • • Governance ESG governed by the Board CSR & ESG Committee and driven by the ESG Management Committee and cross functional teams Responsible Investment (RI) Policy and framework for integrating ESG issues into investment decisions ESG Governance Committee constituted under the investment team for integration of ESG factors in the fund management process and engagement with the investee companies Asset classes covered under RI: Equity and equity-related securities, Alternate Investment Funds (AIFS), Investment Trusts, Corporate Bonds Materiality Assessment conducted as per GRI Universal Standard 2021 Featured in the 'Leadership' category in the list of Indian Corporate Governance Scorecard 14 of 17 • 60.2 CSR contribution: 19.5 crore • No. of beneficiaries: • UN SDGs covered: • GHG emissions (Scope I, II & III): 14,994 tCO2e Customer Satisfaction (CSAT) Score (weighted average of FY 2022-23): Overall Claim Settlement Ratio: 90.7% 99.7% HDFC Life scored 79 percentile in the 2022 S&P Global Corporate Sustainability Assessment Click here: HDFC Life ESG Report HDFC Life Sustainability Factsheet 27 HDFC Life#28Financial and operational snapshot (1/2) 1. 28 2. Rs bn. Q1 FY24 Q1 FY23 Growth FY23* FY22 FY21 CAGR New Business Premium (Indl. + Group) Renewal Premium (Indl. +Group) Total Premium Individual APE Overall APE 58.7 49.5 19% 290.9 241.5 201.1 19% 58.0 51.0 14% 284.5 218.1 184.8 23% 116.7 100.5 16% 575.3 459.6 385.8 21% 18.8 16.9 12% 114.0 81.7 71.2 23% 23.3 20.6 13% 133.4 97.6 83.7 22% Profit after Tax 4.2 3.6 15% 13.6 12.1 13.6 2% -Policyholder Surplus 2.1 2.4 -12% 5.9 4.4 7.3 -18% - Shareholder Surplus 2.0 1.2 72% 7.7 7.7 6.3 55% Dividend Paid (1) 3.6 NA 3.6 4.1 ΝΑ Assets Under Management 2,533.0 2,134.1 19% 2,387.8 2,041.7 1,738.4 23% Indian Embedded Value 418.4 324.7 29% 395.3 329.6 266.2 24% Net Worth (2) 133.9 99.5 35% 129.7 154.0 84.3 23% NB (Individual and Group segment) lives insured (Mn.) 16.4 12.2 34% 68.5 54.1 39.8 4% No. of Individual Policies (NB) sold (In 000s) 206.9 190.6 9% 1,054.1 915.1 982.0 6% Excludes impact of proposed final dividend of Rs 4.1 bn, to be paid in Q2 FY24 (subject to shareholders' approval) Comprises share capital, share premium and accumulated profits/(losses) * FY23 numbers are on a merged basis, hence prior years are not comparable HDFC Life#2929 Financial and operational snapshot (2/2) 1. Q1 FY24 Q1 FY23 FY23* FY22 FY21 Overall New Business Margins (post overrun) 26.2% 25.1% 27.6% 27.4% 26.1% Operating Return on EV 16.0% 15.7% 19.7% 16.6% 18.5% Total Expenses (OpEx + Commission) / Total Premium 19.8% 19.6% 19.8% 16.5% 16.4% Return on Equity (1) 12.6% 14.1% 11.9% 10.1% 17.6% Solvency Ratio 200% 183% 203% 176% 201% Persistency (13M / 61M) Individual WRP Market Share (%) 87%/53% 16.4% 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) 25/33/9/6/26 23/34/6/5/33 19/45/5/4/27 26/33/5/6/30 24/31/5/7/34 61/20/8/12 52/19/8/21 56/20/11/13 60/14/6/19 61/13/7/19 21/7/3/12/57 20/7/3/18/51 25/9/4/13/49 24/6/2/16/52 25/6/2/17/50 6.1% 4.7% 4.1% 5.6% 6.8% 18.3% 17.1% 13.3% 13.6% 12.8% 36.7% 32.2% 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 2. Based on individual APE. UL: Unit Linked, Trad: Traditional, Par: Participating & CA: Corporate Agents. Percentages are rounded off 3. Based on total new business premium including group. Percentages are rounded off * FY23 numbers are on a merged basis, hence prior years are not comparable HDFC Life#3030 30 Segment wise average term and age¹ Average Policy Term excluding annuity (Yrs) Q1FY24: 22.8 (Q1FY23: 23.2) Average Customer Age excluding annuity (Yrs) Q1FY24: 36.0 (Q1FY23: 35.5) UL 12 13 37 UL 12 37 35 34 Par Par 37 33 Non-par Health 19 25 Non-par Health 32 34 13 38 Non-par Savings Non-par Savings 13 37 Non-par Protection 36 34 32 14 Non-par Pension Non-par Protection Non-par Pension 34 14 48 56 Q1FY24 Q1FY23 Q1FY24 Q1FY23 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#31Agenda 1 Performance Snapshot 2 Business Overview 3 Other Business Highlights 4 Life insurance in India#3232 32 7% Hong Kong Taiwan 19.2% 14.0% 7.6% Singapore Japan 5.8% 4.0% 3.4% 3.2% Malaysia 8,433 Growth opportunity: Under-penetration and favorable demographics 1 Life Insurance penetration ¹ (FY 2022) Life Insurance density US$ 2 (FY 2022) Thailand Population composition (bn) 1.4 India China 2.4% Hong Kong Singapore 5,414 3,772 Taiwan Japan 2,347 444 246 253 69 Malaysia Thailand 1.6 1.7 256 286 321 385 10% 15% 1% 2% 3% 9% 16% 21% 32% 47% 58% 61% 59% 83% 76% 65% 44% Household distribution by income 35% 29% 26% 2021 2035 2050 FY12 E FY17 E FY22 E FY30 P Less than 20 years 20-64 years ■65 years and above <Rs 0.2 mn Rs 0.21 mn > Rs 1 mn 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 Source: Swiss Re, MOSPI, United Nations World Populations Prospects Report (2022), CRISIL "The big shift in financialisation" report 2022 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#3333 33 Low levels of penetration: Life protection 1 Protection gap (2019) Sum Assured as a % of GDP 2 332% 83.0% 74.0% 71.0% 70.0% 61.0% 55.0% 252% 251% 3 Trend of retail loans (Rs Tn.) 34 44 53 41.0% 153% 143% 24 127% 17 85% 12 62% 23% India Malaysia Thailand China Japan Singapore Hong Kong Singapore Japan USA Malaysia Thailand South India FY12 FY14 FY16 FY18 FY20 FY22 Korea Embedded SA Protection 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 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 (Based on respective financial year of the countries) 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 。 Increasing value penetration, Growing lines of business HDFC Life#34Macro opportunity: Retiral solutions India's pension market is under-penetrated at 3%* of GDP 54.0 31.3 3.0 India 98.3 90.1 146.2 Improvements in life expectancy will lead to an average post retirement period of 20 years Life expectancy at age 60 20 19 18 18 17 17 16 15 Japan Hong Kong Canada USA Australia Elderly population is expected to increase 2.5x by 2050 55 Ageing population 248 15% 95 161 7% 10% 58% 61% 59% 35% 1995-2000 2005-10 2015-20 2030-35E ■Males Females 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 2021 29% 2035 26% 2050 Age <20 Yrs Age 20-64 Yrs Age >65 Yrs Number of people aged >60 years (In mn) Source: OECD 2021, Milliman Asia Retirement Report 2017; Survey by NSSO, Ministry of statistics and Programme implementation Crisil PFRDA, Census of India, United Nations World Populations Prospects Report (2022) 34 * Comprising pension assets/funds HDFC Life#35Government bond auctions Government Bonds - Tenorwise Issuance 21% 29% 27% 28% 29% 38% 35% 35% 34% 79% 71% 73% 72% 71% 66% 65% 65% 62% FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY24 <=15 yrs ■>15 yrs FY16 FY17 FY18 <=15 yrs 3,66,500 3,73,525 >15 yrs 2,25,000 1,54,520 Total 5,91,500 5,28,045 4,97,579 1,80,529 6,78,108 FY19 3,82,941 FY20 2,04,000 5,86,941 4,44,000 2,38,000 6,82,000 FY21 10,01,835 FY22 FY23 Q1FY24 8,48,000 10,04,000 3,19,000 2,65,575 3,31,000 4,01,000 1,61,000 12,67,410 11,79,000 14,05,000 4,80,000 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 35 Rs cr HDFC Life#36Industry new business trends 1 Product mix 61% 57% 51% 684 51% 49% 49% 43% 39% 40% 60% Individual WRP in Rs bn 452 401 287 245 200 208 356 305 291 FY15 FY17 FY19 FY21 FY22 ■Unit Linked ■Conventional 2 Distribution mix 116 63 63 9% 10% 14% 5% 3% 3% 16% 3% 15% 5% FY15 FY17 FY19 FY21 FY23 Q1 FY24 50% 57% Private players Market share 58% 58% 57% 49% 54% 58% 60% 66% 65% Growth % Private 16% 26% 12% 8% 24% 8% 36% 30% 25% 23% 23% LIC -27% 15% 5% -3% 9% -6% FY15 FY17 FY19 Overall -11% 21% 9% 3% 19% 2% Brokers FY21 ■ Direct FY23 36 B ■ 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) 2. Based on Individual New business premia for all private players Agency ■Bancassurance 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#37Life Insurance: A preferred savings instrument Household savings composition Financial savings mix 22% 18% 22% 20% 0% 8% 15% 15% 22% 19% 18% 21% 17% 23% 55% 52% 59% 68% 16% 17% 32% FY13 45% 41% 67% 56% 48% 48% 38% FY16 FY20 FY22 FY13 FY16 ■Financial savings ■Physical savings ■Currency & deposits ■Life insurance Household savings as % of GDP FY20 ■Provident/Pension fund 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: RBI, CSO, MOSPI, CRISIL, India Ratings 37 FY22 Others HDFC Life#38Reasons for buying insurance - Tax as a reason has declined Top reasons to buy life insurance 1 Customer behaviour / trend 2 Protect family in case of death To secure child's education/marriage Old age security/retirement 2019 rank 2013 rank 1 1 2 2 3 3 Macro-level Economy • State of the economy • Stock market 8 Individual- • 4 level Customer • • 7 Micro-level Product • specifics Age Income Risk appetite Guaranteed returns with add-ons/ riders • Enables diversification For disciplined saving Good returns 4 56 Safe investment option 7 4 Additional investment option Dual benefit of investment and insurance 8 9 9 4 Tax Saving To meet additional life cover 10 10 Major reasons to buy life insurance continue to be protection for family, securing child's needs and retirement planning Tax saving is the 9th reason to buy life Insurance, compared to 4th in 2013 Share of >2.5 lakh ATS has increased from less than 1/5th to ~1/4th within ULIP business in the last 3 years (despite tax being applicable in that category in the last 2 years) Source: 1. The Nielsen Company, Life Insurance - U&A 2019 report, 38 2. HDFC Life survey HDFC Life#3939 Disclaimer 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. HDFC Life#40Thank You 22 YEARS Protecting India with Pride HDFC Life