#1Investor Presentation - FY22 Fic i ย ㅁ HDFC Life Sarutha ke jiyo!#2Executive summary: FY22 $ 2 Revenue & Scale Profitability & Cost Growth 16% Individual WRP % FY22 27.4% Market Share New Business Margin (NBM) FY21 26.1% 14.8% ***** Customer & Capital FY22 92% 13th month persistency² FY21 90% Rs (Bn.) 218.1 Rs (Bn.) 26.8 Overall 99.6% Renewal premium VNB Claim settlement ratio Growth 18% Growth 22% Individual 98.7% Rs (Bn.) 2,041.7 Rs (Bn.) 12.1 CY 34 AUM Growth 17% Profit After Tax (PAT) Complaints per 10K policies Growth (11%) PY 35 Rs (Bn.) 300.5 CY 12.3% Mar'22 176% IEV1 Operating Solvency EVOP1 16.6% exp. ratio PY 12.0% Dec'21 190% 12 1. Indian Embedded Value: Includes impact of excess mortality reserve (EMR); Pre-EMR EVOP is 19.0%; Excludes Exide Life's EV of Rs 29.1 bn 2. Includes single premium HDFC Life#3H Agenda 1 Performance Snapshot 2 Our Strategy 3 Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#4H Agenda My 1 Performance Snapshot 2 Our Strategy 3 Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#5Consistent, predictable, sustained performance Holistic growth Consistent track record over multiple periods New business premium 242 >2x ~3X 113 40 Renewal premium ~2X 218 1.5x 122 80 FY14 FY18 FY22 FY14 FY18 FY22 Protection APE² 13.2 >2x N4X 6.2 1.6 Annuity new business VNB FY18-22 >2X FY16-20 A>2.5x FY17-21 >2x 26.8 21.9 19.2 12.8 9.2 7.4 FY16 FY17 FY18 FY20 FY21 FY22 48.7 ~5X ~7X 10.7 1.6 Rs bn Embedded Value¹ FY14 FY18 FY22 FY14 FY18 FY22 FY18-22 ~2X FY16-20 >2x FY17-21 >2x 300 266 AUM 13M persistency³ 207 152 ~ +6pp 2,042 N ~2X 71% +10pp 81% 125 87% 102 >2x 1,066 506 Mar 31, 2014 Mar 31, 2018 Mar 31, 2022 FY14 FY18 FY22 1. Including cash payout of Rs 7.3 bn for acquisition of Exide Life, but excluding Exide Life's EV of Rs 29.1 bn 2. Based on Overall APE 5 3. Excluding single premium FY16 FY17 FY18 FY20 FY21 FY22 HDFC Life#6Demonstrating resilience in the current environment (1/2) Steady Individual WRP trends Strong, sustainable growth¹ Overall 7.2% 8.1% 9.2% 9.3% mkt share Growth Pvt. mkt 12.5% 14.2% 15.5% 14.8% share YOY 5% 19% 17% 16% FY22 growth HDFC Life Pvt sector Industry 16% 22% 16% 2 yr CAGR 17% 14% 9% 81.5 70.0 59.7 50.1 5 yr CAGR 18% 14% 10% FY19 Balanced product mix Total APE 6 FY20 FY21 I FY22 Total NBP 5% 6% 10% 23% 25% 14% 20% 22% 28% 24% Rs bn Bounce back in CP volumes on the back of higher disbursements² 36% 17% -19% 55% Par 13% Non Par Savings ■ULIP 10% Protection 53.0 42.4 36.4 34.2 Annuity Group Retirals FY19 FY20 FY21 FY22 YoY Growth HDFC 1. Based on Individual WRP; 2. Based on Credit Protect new business premium Life#7Demonstrating resilience in the current environment (2/2) Focus on diversified channel mix¹ Steady expansion in New Business Margins Rs bn 4% 9% 7% 6% 13% 14% 13% 14% 19% 19% 19% 22% 20% 25% 14% 22% VNB has 27.4% 25.9% 26.1% grown at 24% CAGR between FY17-22 64% 61% 60% 55% 24.6% FY19 FY20 Direct FY19 FY20 FY21 FY22 FY21 FY22 VNB Growth ■Agency ■Brokers and others Solvency position Bancassurance Strong growth in renewal premium 1. 17 18% 218.1 184.8 FY21 FY22 Based on Individual APE ■ Backed by consistent improvement in overall persistency 190% 176% Dec 31, 2021 Mar 31, 2022_1 ■ Includes impact of cash payout of Rs 7.3 bn for acquisition of Exide Life, impacting solvency by 13% ■ Sub debt raise of Rs 3.5 bn approved by Board, amounting to 6% of solvency HDFC Life#8H Agenda My 1 Performance Snapshot 2 Our Strategy 3 Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#9Key elements of our strategy 1 2 3 4 5 Focus on 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 Market-leading innovation Creating new product propositions to cater to the changing customer behaviour and needs Reimagining insurance Market-leading digital capabilities that put the customer first, shaping the insurance operating model of tomorrow Quality of Board and management Seasoned leadership guided by an independent and competent Board; No secondees from group companies 9 "Our continuous focus on technology and customer-centricity has enabled us to deliver consistent performance even in the most challenging times" HDFC Life#10Focus on profitable growth Accounting Profit Economic Profit FY19 FY20 FY21 FY22 Rs bn New business Margin 24.6% 25.9% 26.1% 27.4% Value of new business 15.4 19.2 21.9 26.8 Profit after tax (PAT) 12.8 13.0 13.6 12.11 Underwriting profits 9.0 10.9 7.3 4.4 Shareholders' surplus 3.8 2.1 6.3 7.7 Growth impacted by EMR² created due to Covid 29.9 32.3 34.9 25.5 Underwriting profits breakup -16.5 -19.1 -25.0 -30.5 1. 2. 10 10 FY19 FY20 FY21 FY22 ■Backbook Surplus ■New Business Strain Impacted by excess mortality reserve (EMR) created due to Covid. Post wave 2, PAT in Q3 & Q4 improved steadily, with PAT for Q4 registering a 12% YoY growth EMR: Excess Mortality Reserve Profitable growth distribution mix Diversified leading Market- insurance Reimagining Quality of Board and innovation management HDFC Life#11Analysis of change in IEV EVOP - 50.5 EVOP1% 19.0% - Rs bn 29.1 329.6 1.5 -6.5 26.8 -0.5 23.0 -0.7 Operating variances 266.2 Covid impact Economic variances Change in -2.0 Dividend & ESOPS 307.7 -7.3 300.5 Cash Exide Life VNB Unwind operating payout for acquisition EV assumptions 176.3 89.8 IEV at Mar 31, 2021 Post-EMR2 EVOP1% 16.6% Adjusted Net worth (ANW) Value of in-force business (VIF) 211.9 95.8 211.9 88.6 IEV before cash payout for acquisition IEV at Mar 31, 20223 Operating variance continues to be positive and in line with our assumptions 1. EVOP% calculated as annualised EVOP (Embedded Value Operating Profit) to Opening EV 2. EMR: Excess mortality reserve 3. HDFC Life EV excluding Exide Life EV reviewed by Milliman Advisors LLP; Exide Life EV reviewed by Willis Towers Watson 11 228.3 101.3 Consolidated IEV at Mar 31, 20223 growth Profitable distribution mix Diversified leading Market- Quality of insurance Reimagining Board and innovation management HDFC Life#12Diversified distribution mix enabled by multiple levers Proprietary¹ 1.1L+ Agents Banks, SFBs, Other CAS HDFC BANK Saraswat Bank The Bar Clive Bank Ltd. (A Schedule Bar NBFCs, MFIS Utkarsh Small Finance Bank >> HDFC SALES Aapki Ummeed Ka Khaata Fullerton India FINANCIAL Chola equitas Small Finance Bank Brokers & Aggregators IBLUECHIP EXPERT ADVICE. EASY INVESTING Integrated since1974 Investments Simplified 372 Branches 48 Digital Branches² www.hdfclife.com HDFC Life App IDFC FIRST Bank DCB BANK RBLBANK YES BANK AXIS BANK Bandhan Bank SURYODAY A BANK OF SMILES AU AU SMALL FINANCE BANK SOUTH INDIAN Bank TJSB SAHAKARI BANK LTD. MULTI-STATE SCHEDULED BANK UJJIVAN LIVAN SMALL FINANCE BANK Capital Small Finance Bank HDB SERVICES TATA CAPITAL ⭑VFS MANAPPURAM FINANCE LIMITED Make Life Easy Chaitanya BAJAJ FINANCE LIMITED pab Housing Finance Limited Muthoot MICROFIN nabfins policy bazaar Coverfox.com Ni INSURANCE BROKERS Compare. Buy. Save. com BajajCapital InsuranceDekho Probus Insurance ROBINHOOL KNOWLEDGE ON YOUR SIDE C-NTRUM Group, Pension & International Business 12 NPS Corporates Group Annuity (MPH/CA) 160+ Superannuation Funds Rep Office NRI - Partnerships in emerging eco-systems across Health, E-commerce, Auto, Telecom, Mutual Fund, Fintech AXIS ASSET MANAGEMENT Apollo Health and Lifestyle Ltd HOME CREDIT Clix Capital पे Ofisdom LENDINGKAT PhonePe realme payसा turtlemint mswipe.TM FUNDSINDIA 1. Proprietary channels include Agency, Direct and Online 2. Digital Branches: Virtual branch for servicing customer requests remotely through dedicated app and webpage Equity Brokers & Wealth ZERODHA ICICI Securities Edelweiss Ideas create, values protect HDFC securities MOTILAL OSWAL Investment Services GEOJIT Angel Broking sbi securities Profitable distribution Diversified leading Market- Quality of growth insurance Reimagining Board and mix innovation management HDFC Life#13Bancassurance powered by innovation, technology and people Product proposition Comprehensive product suite across par, non-par, term, annuity, ULIP Partner experience & engagement Tech integration & analytics Seamless operations Capability building & resourcing solution for generating illustration Straight through processing lead to conversion Learning on the go: mobile nuggets for skill enhancement Defined One stop engagement InstaPlan metrics Insta Quote measured digitally Combo insurance products Innovative term CSR Joint CSR1 initiatives that CORPORATE INSTAInsure strengthen PASA¹ using analytics relationships products limited pay, RoP1 and Dedicated HNI¹ cell Cloud riders Cloud based customer Telephony calling solution for sales Pre-conversi Wenfication via Chat Digital sales verification via WhatsApp chat, video app or calling Reducing need of physical presence by digitization through WISE² & Non Assisted PCVC³ Comprehensive engagement and YUNite training programs for sales teams Structured rewards and recognition program Mass distribution - products POS¹ & Saral plans Virtual instA assistant for sales & service teams Profitable distribution Diversified growth mix innovation leading Market- Quality of Reimagining Board and insurance management POS: Point of Sales; PASA: Pre-approved Sum Assured; RoP: Return of Premium; HNI: High Networth Individual; CSR: Corporate Social Responsibility WISE: Frontline digital tool, enables virtual onboarding of customers in the presence of a HDFC Life representative 3. PCVC: Pre Conversion Verification Call HDFC Life 1. 2. 13#14Technology driving agent productivity in Agency channel Onboarding Skilling & Engagement Enablement Support & Servicing InstaPRL¹ a simple, paperless and hassle free FC² onboarding platform Insta FRL Independent, link based app Optical Character Recognition (OCR) system Online payment for PRL fee OTP based consent Structured communication IC383 audio online training Easier and simper way to complete IC38 training • Interesting & engaging audio content Available in 6 major regional languages Auto calculation of training hours • HDFCLife Agency Learn. Interact, Felicitate. Engage. • Digital Learning & Skilling platform benefitting ~6,600 FCs² daily Regular business activation Digital skilling session driving better tech adoption Enhanced earnings BUZZ Secure communication platform for all Agency stakeholders With rich media delivery features Business update Contest: launch, update, qualification like 30 HDFC Life Easy - End 2 End Term Journey End to End Digital Customer journey Easy product selection Pre defined validation Easy to fill forms Easy document upload and payments InstA Virtual assistant Partner Portal Dedicated platform for FCs² giving business insights and fulfilling customer service requests • • Features: • • . at your fingertips • Helping FCs with Quote illustration • Reward fulfillment process and status • Product & policy details Contests & commission details Tax and TDS related details Product launch Pay-outs and payment history Tax declaration and exemption details Medical reports Communication history Cross selling opportunity Regular reminder on premium collection Event updates 1. PRL: Pre-recruitment licensing 2. FC: Financial Consultant 14 3. IC38: Qualifying exam for becoming an insurance advisor, conducted by Insurance Institute of India Profitable distribution Diversified leading Market- Quality of growth insurance Reimagining mix innovation management Board and HDFC Life#15Expanding market through consistent product innovation 15 FY15-18 Launched before 2015: Retirement & pension Group Credit Protect Click 2 Invest Woman Youngstar FY19-21 FY22 Click 2 Protect 3D Plus (Protection) Pension Guaranteed Plan (Annuity) शं Classic One (ULIP) Cancer Care (Health) * Sanchay Plus (Non-par savings) * Sanchay Par Advantage (Participating) Group Poorna Suraksha (Group term insurance) शं Sanchay Fixed Maturity Plan (Non-par savings) Guaranteed return savings plan which offers complete flexibility in terms of age coverage, premium payment & policy terms with industry first liquidity features HDFC Life QuickProtect (Protection) A combination of Click2Protect Life plan and accidental death benefit, critical illness & income benefit on accidental disability riders, designed to give cover against 3Ds - Death, Disease and Disability Systematic Retirement Plan (Annuity) Regular pay deferred annuity plan which allows flexibility to choose deferment period and annuity payout date "PRODUCT INNOVATOR OF THE YEAR - LIFE INSURANCE", by Quantic India - 3rd Annual BFSI Technology Excellence Awards, 2022 growth Profitable distribution Diversified leading Market- insurance Reimagining Quality of Board and mix innovation management HDFC Life#16Addressing customer needs at every stage of life <25 years Objective Simple Savings 25-35 years Borrowing 36-50 years Investments 50+ years Asset Drawdown Pay off mortgage Retire Medical care Needs First Job Medical care Get married Plan for retirement Medical care Medical care Buy new car Child's education Buy Home Product Offerings Product mix across age categories¹ Risks Addressed Mortality Morbidity Net Worth Longevity Interest Rate Profitable distribution Diversified leading Market- growth insurance Reimagining Quality of mix innovation management Board and 27% 20% 28% 34% 37% 32% 6% 1% HDFC 2% 13% Life UL 35% 30% Par 34% 29% Non par 27% 30% savings Protection 4% 11% Annuity 0% 0% 16 1. Based on Individual WRP for 12M FY22; Percentages may not add up due to rounding off effect#17Our approach to retiral solutions 1. NPS 7 Largest Pension Fund Manager (PFM) in Retail and Corporate NPS segment, with AUM of Rs 284 bn¹ Registered strong AUM growth of 73% yoy 2. Immediate / deferred annuity Largest player in the private sector Servicing 300+ corporates and >50,000 lives covered in FY22 ◉ Market share grew from 34% in Mar'21 to 37% in Mar'22 amongst all PFMS Company has over 1.1 mn customers - ~0.8 mn in retail segment and ~0.4 mn in corporate segment #1 POP2 in new Corporate and Corporate Subscriber business 3. Group superannuation fund Managing funds for 160+ corporates under superannuation scheme NPS AUM Ranked #1 73% based on AUM Annuity portfolio 42% Rs bn 11 Profitable growth mix distribution Diversified innovation leading Market- Quality of insurance Reimagining Board and management 284 164 164 116 12 52 13 54 FY17 FY19 FY21 FY22 FY17 FY19 FY21 FY22 HDFC 1. As on Mar 31, 2022 17 2. POP: Point of presence for enabling opening of accounts on a platform 17 Life#18Evolution of protection prices in India Private insurers start selling Term Scale up of Credit Life Introduction of fixed benefit Health plans Sale of online Term Entry of Web Aggregators Initial1 Term price plan- significant reduction in prices 2009 50-70% drop 10-20% drop 2011 2013 2014 Tightened reinsurer guidelines based on experience Industry working towards calibrated growth Widening customer base (tier 2&3 towns; self employed), distribution (digital, other channels), Stabilization of Term prices Pricing and underwriting norms evolving in line with changing geographical and demographic coverage over time 2015 5-10% drop 2017 2019 2020 15-25% increase 15-25% increase 2021 2022 Profitable growth mix distribution Diversified innovation leading Market- insurance Reimagining Quality of management Board and Despite recent increase in pricing, term rates on an average have seen a CAGR of only 1.4% over last 10 years, still lower than pre-2014 HDFC 1. Indicative movement of Term premium rates for HDFC Life, for Male, 35 year old, Non Tobacco user for Term 30, exclusive of tax 18 Life#19Our experience during the journey gave us multiple insights Protection growth trajectory of HDFC Life¹ Salaried Non- salaried An illustrative depiction of segmental risk based on past experience 12.7 10.7 13.3 Male Grad & abv. 10.5 Occupation Female Gender Education Below Grad 6.2 4.7 4.8 4.6 3.3 3.5 Mortality risk 2.5 1.5 >=18 yrs, <36yrs Age Sum assured <1cr FY17 FY18 FY19 FY20 FY21 FY22 Income ■Individual ■Individual + Group FY17 FY18 FY19 FY20 FY212 FY22 >36yrs <5 lac >= 10 lac >=5 lac, <10 lac >=1cr Profitable distribution Diversified growth mix innovation leading Market- insurance Reimagining Quality of management Board and Total Protection APE growth 19% 92% 67% 22% (16%) 24% Protection mix based on NBP 7.8% 11.3% 16.7% 17.2% 12.8% 13.6% Nuanced approach while evaluating risks across customer segments HDFC 1. Based on APE, in Rs bn 2. Growth has been negative on account of supply side constraints during Covid and stricter underwriting norms 19 Life#20Our protection philosophy is based on our experience across cohorts Supply side considerations ✓ Adverse mortality experience in pandemic Recalibration by reinsurers ✓ Need for calibrated underwriting Sustaining robust claim settlement ratio Insurers moving beyond top 10 cities and salaried segment Demand side considerations Huge protection gap and under-penetration ✓ Customers valuing brand, onboarding experience and track record, apart from the price Younger customers are less hesitant about discussing mortality, morbidity 20 20 اس Our Focus Areas Strengthening underwriting practices and use of deep learning underwriting models Continue to address protection opportunity through group platform (Credit Life) apart from retail business Product innovation catering to varying customer needs; Higher focus on riders Leveraging available market & industry platforms e.g., central medical repository for faster turnaround and greater underwriting precision Profitable distribution Diversified growth mix innovation leading Market- insurance Reimagining Quality of Board and management Protection is a multi-decade opportunity that we plan to address prudently with continued innovation HDFC Life#21Strengthening underwriting and simplifying customer journey UW Engine¹ Welcome, Deepak Khatri Lifeline Underwriting Last Login Date: 15/2/2022 Time:2:56:33 PM IST Client ID: 1001667595, PRATISHA, 48 (21/10/1973), Female, Married, B Ed Submit Nationality: Indan Designation: Procurement Manager Nature of Occupation: Salaried Annual Income: 4,500,000 Insurance Type: Individual Plain Name: SLCREST Sum Assured: 3.500,007 App No: 1100022259099 Member 1 of 1 Existing Client: No C24: 3.500,007 Adverse Flag: NA TC: (3,500,007 NRI Status: Yes PIO/OCI Status: No App Stage: Cancelled Smoker Status Quote: No Smoker Status Form: No Proposer Relationship: Self BMI: 22.7 Policy Term: 10 yrs Simultaneous Flag: No Nominee Relationship: Brother PEP: NO H36/Cardiac C24: Residential Status: NR Team Hierarchy SALES MEDIEASY DASHBOARD Application All Applications Page 1 G Λ MediEasy Assisted real time requirement closure for hassle free medicals Next ▸ Real time assisted financial scrutiny and help from financial desk Premium: 500,00 (Ann) NOC Risk Status: Customer Type: Summary Non Health Other Application details ►Additional component/Rider Details: MyMix: HNI Flag: Y HNI Segment: DRC Category: Health Questionnaires DigiMedProx MER Lab Reports > View Do UW Automated Details: Application ID: 1100022259099 Score Band: 9 Action: Manual UW Decision: Message: Moderate Status: Code: 3 Decision: RUW Special Category: EUS Decision(Proposal Level): Refer to Underwriter(Magnum) Comments: 24: 30L-50L, DU Score Band: >5 Magnum Decision: RUW NIO Launch Pad PRAVIN TIWARI Application No. 1100022362724 Created on 03/02/2022 SumAssured: 50,00,000 Premium: 28,282 Status: Document Upload Completed 7977356112 Proceed ANAND MOHAN Application No.- Created on 03/02/2022 + Calendar New Application Real time video medicals Ⓡ Real time medical scheduling An in house model that provides ability to set dynamic parameters Allows flexibility in deciding retention strategy without manual intervention 8= 2-stage model developed using deep learning techniques. 1st stage predicts probability of future claim and 2nd stage proposes actual UW1 decision Meditech initiatives Non Invasive Heart Rate, BMI and other parameters using customer mobile video Instant Accessible Accurate Available 24X7 In customers pocket 1. UW: Underwriting 21 21 Profitable distribution Diversified leading Market- growth insurance Reimagining Quality of Board and mix innovation management Customer empowering HDFC Life#22We leverage multi-pronged risk management approach for protection 1 Reducing incidence of fraud & early claims Analytics and Data Enrichment Risk+ AI-ML based risk models, rule engines, credit bureaus etc. 2 Limiting impact on profitability & solvency Reinsurance Optimized reinsurance strategies for risk transfer 3 Balancing pricing & underwriting Active re-pricing 4 Strong governance & audits @Partners TPAs & medical centers Ongoing wherever required (mostly applies for Group schemes) Ensure process & quality adherence No 'one size fits all' underwriting Dynamic classification depending on profile, detailed medical & financial underwriting Regular portfolio review Catastrophe agreement Product boundary conditions To protect from excess loss Gate criteria depending upon sourcing channel Prudent reserving To identify emerging trends, outliers and take corrective actions Well provisioned to prevent sudden shocks from current pandemic 222 Distribution partners Adherence to best practices and continuous monitoring of risk Profitable distribution Diversified growth leading Market- Quality of insurance Reimagining mix innovation management Board and HDFC Life#2323 Protection Direct Banca 2 Product mix across key channels¹ Segment FY19 FY20 FY21 FY22 Segment FY19 FY20 FY21 FY22 UL 64% 32% 27% 29% ¡UL 26% 12% 10% 16% I I Par 13% 18% 37% 33% I Par 40% 34% 37% 33% I Non par savings 17% 44% 30% 33% Non par savings 17% 40% 39% 39% Term 4% 4% 4% 4% Term 12% 12% 11% 10% Annuity 3% 2% 2% 2% Annuity 5% 3% 3% 3% ¡UL 50% 33% 29% 28% UL 62% 44% 39% 46% ¡Par 8% 14% 17% 14% I Par 2% 1% 1% 2% I Non par savings 12% 20% 16% 27% I Non par savings 1% 18% 29% 30% I ¡Term 6% 4% 3% 3% Term 35% 37% 30% 20% I I I !Annuity 24% 29% 35% 28% Annuity 1% 1% 2% 2% Segment FY19 FY20 FY21 FY22 Company UL 55% 28% 24% 26% ¦ Par 18% 19% 34% 30% Non par savings 15% 41% 31% 33% ~40% of business with policy term <10 years; ~20% of received premium in single-pay policies since launch of Sanchay Fixed Maturity Plan Term 7% 8% 7% 6% Annuity 5% 4% 5% 5% FY19 FY20 FY21 FY22 !Based on Total APE 17% 17% 13% 14% Based on NBP 27% 27% 20% 24% 1. Based on Individual APE, Term includes health business. Percentages are rounded off 2. Includes banks, other corporate agents and online business sourced through banks / corporate agents 3. Includes business sourced through own website and web aggregators Annuity FY19 FY20 FY21 FY22 Based on Total APE 4% 4% 5% 5% I Based on NBP 17% 16% 20% 20% Profitable distribution Diversified growth mix innovation leading Market- Quality of insurance Reimagining management Board and HDFC Life#24Aligned to make life simpler for customers 24 24 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 5 PLATFORMS independent buying / servicing Building resilience.. 8 9 Enable a hybrid Work From Home environment 1. Futurance: A program to collaborate with startups for harnessing cutting-edge technology growth Profitable mix distribution Diversified innovation leading Market- insurance Reimagining Quality of management Board and Strengthen Cyber Security for post-Covid world HDFC Life#25Journey simplification 25 HDFC Life Click 2 Protect Life Resume Application Toll Free 1800-266-9777 Basic Step 01/06 Residential Status Resident Indian NRI OCI PIO State of Residence Maharashtra Insta Quote Don't let the income stop- plan your retirement Retirement Plans Check Pre approved sum assured offer! Check Eligibility Select your plans to get started HDFC Life Enable/Disable Voice Input Select Product HDFC Life Click 2 Protect Life Save & Continue Resume Application HDFC Life Insurance Company Limited ("HDFC Life"). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 Registered Office: Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg,Mahalaxmi, Mumbai 400 011. For purchasing a new policy, you can Email us on [email protected] and call us on 1800-266-9777 (All days, from 9 am to 9pm). For in-progress applications (post payment), you can email us on [email protected] and call us on 1800-266-0315 (All days, from 10 am to 7 pm). The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited (HDFC Limited") and le near hy UDEC Life under nn nnreament Start Fresh Continue Protection Plans Savings & Investment Plans Corona kavach & Term Combi Plan Retirement Plan Plans HDFC Life Insurance Company Limited (Formerly, HDFC Standard Life Insurance Company Limited) ("HDFC Life"). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 Registered Office: Lodha Excelus, 13th Floor, Apollo Milis Compound, N.M. Joshi Marg,Mahalaxmi, Mumbai 400 011. The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited (HDFC Limited" and is used by HDFC Life under an agreement entered into with HDFC Limited. HDFC Life Click to Protect Life (UIN No: UIN-101N139V04), is a non-linked, non-participating, individual, pure risk premium/savings life insurance plan and HDFC Life Income Benefit on Accidental Disability Rider (UIN: 101B013V03, Form no. R501-21-01), HDFC Life Critical Illness Plus Rider (UIN: 1018014V02, Form no. R501-23-01) and HDFC Life Protect Plus Rider (UIN 101B016V01) are the names of the riders. For more details on risk factors, associated terms and conditions and exclusions please read sales brochure carefully before concluding a sale ARN: EU/01/21/22037. Hello, I am Elle, I am here to make this journey easier BEW for you. To get started, say "Next" AND To get sta FICTIOUS/FRADULENT OFFERS not involved in ac 1) ng bonus or inve ne calls are requ elling insurance remiums. Public e a police comp Life Easy End to end Term buying journey 21K+ applications submitted InstaQuote Quote generation app 30K+ daily quote generation Voice Voice enabled buying journey 1K+ user journeys for Life Easy Profitable growth distribution Diversified mix innovation leading Market- insurance Reimagining Quality of management Board and HDFC Life#26Partner integration 26 Upload File Consolidated Repon Yet to Start/ In Progress Partner same Successful and Unique Key Status File Court and Tine Select Partner Name ☐ Uploaded on Successful & PM Uploaded on Select Partner Name ☐ horag Enor AM NATIONAL TRUST HOUSING * FINANCE LTD (07122) PP005 Select Partner Name U Uploaded on 190110217:10 Ehepatectomarselected wes insonsct Pase try agais Ear PM Upeaded an 190110217-09 Succesful pogin Obor & PM View All LifeNext End-to-end portal for group partners creating a seamless journey with plug-n-play integration More than 200 partners on-boarded - 1. API Application Programming Interface - 2. MIS Management Information Systems 3. FCS- Financial Consultants HDFC Life InteGreat API Documentation Home APIs FAQS Search a Overview of New Business Show AllAPs 0 Subscribed AP CAPI Overview This domain broadly covers the business capabilities required to help partners successfully complete the end to end New Business Journey starting Lead creation till policy issuance New Business Application Lead Quote Requirement + Payment KYC Application The APis under this category primarily addresses the functions related to Application or Proposal as an entity Partners can submit an application as well as w Explore Lead APlunder this category is used to manage and maintain the lead it helps us to generate any new lead along with updating the information of the lead Explore Quote APT under this category used to generate and final the quote and also retiree the lustration for the prated quot Explore Requirement APT under the category used to manage the requirements related to ptions th partner to understand the requiementsgenerated b... Explore API Bank A portal to publish & test APIs¹ for data and services offered to Partners, Aggregators & Fintechs CasMoart Sales M Sport Sp formance NW [197 MED Applications MTD Lagin Conversor Lead Opnversion Opportunties Contests and Earnings Agency Life Servicing Lead Pre Login Ligin My Rank Conversion Persistence Contests & Earnings TCP Park Duta Payouts Pre Login Appleton wh Paning Ca Submitted Only Srouffe MORT Commisson Set Ste * HOAS Non TO Nark Date D 2360425 Login landing with Duct Funds Only CAT Partner Portal One stop shop for all MIS², self and customer servicing needs of an individual Agent 28K+ active FCs³ in Q4 Profitable growth mix distribution Diversified leading Market- innovation insurance Reimagining Quality of management Board and HDFC Life#27Service simplification 27 27 Your Own Official Chat + workapps.com/web2/chatonly/a/chat?d=124 ФОХ DS Devender Singh αQx WorkApps Search a Group or Contact VG Vijay Ganesh Nain + New NE ME R Mayur Sunil Supekar Mos 24lan42 PM Busy As Amel-Station Road 22. this is self surrender link Guest Chut enabled Contacts Rahul 200 Mayur Sunil Supekar Mos-24 Jan at 4:38 PM Sant-City Light Chat Gandhidham Tagore R... Guest Chat enabled 2 Memo View Map Admin Satish Kumar Karnatapu Vinmada Mwen Bhuj Rto Circle BR Cot Out enabled https://myaccount.hdclife.com/LifeWeb- CP/portal.do? nortalid customer inks pageid-cp Surrender Pag eStolen-e1dc65422afcb04590140d2202f5bf0 Status changed to Successful Mon 24 Jan at 5:01 PM Reciplen/VideoRecording webm M Send a message (Ctrl+Enter for next line) Send a message (Ctrl+ Enter for next line) Gandhinagar-Suman.. Guest Chat enabled 4 NV NAGARAJU VELDURT... DOX KS Kamlesh singh X Vijay Ganesh Nair Pune Aundh 100 State: Telangana City Hyderabad DS Devender Singh Gurgaon Mg Road 08-09 Se NAGARAJU VELDURT.. Kakatpalli KS Kamleshsingh 肉 Branch: Kukatpall Policy Number: 17372044 周 NAGARAJU VELDURTHY Mon 24 Janat 4:37 PM H Lucknow Hurstgan NAGARAJU VELDURTHY Mon 24 Janat 4:38 PM Himmatnagar Branch 20 Mycurrent location ist Guest Chat enabled 10-93, POTHIREDDY PALLI, Sangareddy. Telangana SJITENSANGHVI 502285 India RecipientVideoRecording webm Kolkata Gariahat B View in Google Maps (41KB) V Serv Industry first video based 'Phy-gital' mode of service OTP¹ enabled customer authentication 1. OTP One Time Password 2. NLP Natural Language Processing Life HDFC Life ❤ Today InstaQuote Voice Platform This business works with other companies to manage this chat. Tap to learn more.. Hi 14:51 Hi, I am Etty, WhatsApp bot of HDFC Life to help you with queries and services related to your policy. 14:51 Please choose an option from the Menu below. How it works? Give voice inputs when the app is in the foreground & get quotations. If the voice doesn't work at first, find the mic at the bottom and tap to speak. You must allow the app to record voice from your phone's Settings menu. 14:51 Menu You can even send your query through voice by holding mic icon. ☺ Message Life.AI 14:51 24X7 NLP2 based WhatsApp bot 2.5mn+ unique users Protection Plan Try saying Show Protection Plan for 1Crs for Age 30, Male/Female Savings & Investment Plan Try saying Show Fixed Maturity Plan to invest 1Crs for 5 yrs Voice.AI Availability of servicing on Voice Channels- Alexa, Google Assistant growth 11 Profitable mix distribution Diversified leading Market- Quality of insurance Reimagining innovation management Board and HDFC Life#28Data Labs Underwriting engine Industry first: automated underwriting Persistency models Persistency prediction NLP² engine conversational AI² ÎnstA Virtual assistant for sales and service FaceSense Face recognition AgeTymer Face ageing SVAR Voice bot to manage end-to-end renewal call Emolyzer Emotion based analysis of voice SPOK Email bot using NLP2 for service queries Machine Learning/ Predictive Modeling RAG¹ & Risk+ Early claims prediction Cross-sell models Provides cross-sell propensity Customer retention Proactive retention E Text AI Vision AI Voice AI Advance AI Voice authenticator ¡Earn Incentivize lead measures for sales Sentilyzer Health Profiler True Cue Sentiment analysis of chats & mails BP3, BMI4 & Heart monitor Red Amber Green model NLP - Natural Language Processing; AI: Artificial Intelligence 1. RAG 2. 3. 4. - BMI Body Mass Index 28 BP Blood Pressure Profitable growth mix distribution Diversified innovation leading Market- insurance Reimagining Quality of management Board and HDFC Life#29Platforms 29 HDFC Life ey-uat.apps-hdfclife.com 9:41 Hi, Ajinkya Dear RAJNISH KUAMR, Your decision to opt for Accidental Death Cover will go a long way in enhancing your family's financial security. HDFC LIFE PROGROWTH PLUS Policy No: 22985001 Sum Assured: 2,50,000 Here's a customized illustration for you to refer and make the payment HDFC LIFE PROTECT PLUS RIDER (Accidental Death Cover) Risk Commencement Date: 25th Sep 2020 Rider Sum Assured 2,50,000 Rider Premium 148 (Annually) Premium Details Rider Attachment Attach riders at renewal seamless journey with 2 clicks Life Reward Take Action 三の QQ Google Fit H Do 20 Mins Skipping Avail 200 points Drink 2L Of Water Avail 300 Points Offers fitness- related challenges Physical and mental well-being content Start Now HRA Score HRA Score 60 BMI 20.5 Steps 320 + Home Activity Start Now Calculate again Points 500 Rewards Profile Integrated with fitness wearables Periodic BMI/ fitness checks growth Profitable distribution Diversified leading Market- mix innovation insurance Reimagining Quality of management Board and Life Rewards Health and wellness app User gets reward points for completing fitness challenges, taking risk assessment, and other activities (sandbox mode) HDFC Life#30Futurance program - Start-up outreach for driving Innovation To more efficiently assess current and predict future medical conditions For more effective screening through automated resume analysis, skill matching, and score generation Al Based Hiring Non-Invasive Medical Diagnostics Behavioral Tools for Futurance>> Customer & Employee Engagement To raise employee engagement and customer conversion Initiative started in June 2019 in collaboration with IvyCamp Ventures Advisors To improve Document customer Gamification IvyCamp Intelligent Sales Engagement To contain attrition engagement and information sharing of front line sales staff. 30 30 Speech to Text Alternate Data Sources 380+ applications received Collaboration with 85+ startups Sample highlights of POC conducted ΑΙ AI based video assessment for branch service staff Quote calculator inbuilt in a video for lead generation المجمع AML TECH To translate speech in multiple languages into text for improved customer interaction. To provide authentic data sources of Income, Health, MedicalFraud, Identity etc. in order to enable faster decision-making process at different insurance value chain stages Sales Management application for POSP agents Automation of AML analysis and reporting Profitable distribution Diversified growth mix innovation leading Market- insurance Reimagining Quality of management Board and HDFC Life#3131 Leveraging technology to build resilience 000 Architecture Resilience - Scalability and Efficiency +!! Modular architecture Custom APIS Data Lake Low/no code Platforms Cloud 1. SOC: Security Operations Center - Workforce Resilience – Hybrid Working Environment Virtual Workspace Work From Anywhere Re-imagined processes Digital Re- skilling Morale and productivity enablers Cyber Resilience - Strengthen Cyber Security for post-covid world OEOPA Zero Trust Enhance SOC¹ Access Control Secure Devices Face Recognition growth Profitable mix distribution Diversified innovation leading Market- insurance Reimagining Quality of Board and management HDFC Life#32Emphasis on digital across customer touch-points New business / purchase Digital sales journey - End-to-end digital sales, from prospecting till conversion, including customer interactions SVAR Policy servicing SVAR Digital Renewal collections 87% based on renewal premiums and 96% based on no. of policies in FY22; SVAR (voice bot for renewal calling) and use of Cloud telephony eCCD Chat PCV¹ and eCCD1 - No dependence on salesperson or call center. 50% digital pre-conversion verification (through chat and eCCD) in FY22 48% of the Telemedicals medicals done through tele- medicals in FY22 Maturity payouts - Email, WhatsApp and customer portal 'My Account' enabled to upload necessary docs - LifeEasy Simple '3 click claim' process, 93%² eligible claims settled in 1 day. Claims initiation process also enabled through WhatsApp InstA HOFC Life Insta Serv2.0 Customer interactions Employee/Partner engagement Seamless support experience - ~30 mn queries handled by instA (virtual assistant) during FY22 e-learning platform -6,600+ agents attending training programs daily through Agency Life Platform - Use of mobile app 15% increase in mobile app usage Gamified contests - Launched to drive adoption of digital engagement initiatives Insta - InstaServe OTP based policy servicing tool to handle customer queries PRL Agent on-boarding - Insta PRL enabling digital on-boarding of agents 91,000+ applications logged in FY22 WORK Uninterrupted customer assistance Work from home enabled across the organization; Access to Microsoft Teams, Citrix RPA -Robotic Process automation handled 330+ processes remotely HI! 24*7 self-service options - 95% of chats are self-serve via chat-bot Employee engagement - Video conference based skill building sessions with digital partners (Twitter, Google, Facebook) INSTAin sure 32 InstaInsure - Simplified insurance buying through a 3-click journey Contact centres - Branch staff replacing call centre agents Branches - Daily tracking of employee and agent safety Partner trainings - Conducted via digital collaboration tools New initiatives launched to manage volatile business environment due to the Covid-19 outbreak 1. PCV: Pre-conversion verification; eCCD: Electronic Customer Consent Document 2. Claim settlement ratio through LifeEasy (online) and WhatsApp platform, as on 31st March 2022 HDFC Life#33Governance 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 Committee Risk Management Compliance Council Council ALCO1 Note: 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. Asset Liability Management Council 33 2. The above list of committees is illustrative and not exhaustive Capital Raising Committee Profitable growth mix distribution Diversified innovation leading Market- Quality of insurance Reimagining Management Board and HDFC Life#34Financial risk management framework Natural hedges Protection and longevity businesses Unit linked and non par savings products 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 Product design & mix monitoring ■ Prudent assumptions and pricing approach Return of premium annuity products (>95% of annuity); Average age at entry ~59 years ■ Deferred as % of total annuity business < 30% with average deferment period <4 yrs ☐ Regular monitoring of interest rates and business mix Residual strategy External hedging instruments such as FRAS, IRFS, swaps amongst others Reinsurance FY21 FY22 I Sensitivity Overall Non par 1 Overall Non par 1 Sensitivity remains range-bound on the back of calibrated risk management Scenario EV Interest Rate +1% Interest Rate -1% (2.2%) 1.6% VNB Margin (1.5%) (2.3%) 0.9% 1.2% EV EV 1.6% VNB VNB VNB Margin Margin Margin (2.9%) (2.0%) (1.4%) (2.1%) (2.5%) 1.8% 0.8% 1.5% EV 1.4% 34 1. Comprises Non par savings (incl Annuity) plus Protection HDFC Life#35H Agenda 1 Performance Snapshot 2 Our Strategy 3 Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#36Importance of Financial Instruments and Triggers to buy LI¹ 73% 50% 42% Life 26% Insurance 10% 6% Health Insurance Bank Fixed Deposits Post Office 4% 2% Pension Schemes [Svaasth Bima] Savings 1% Mutual Funds Schemes [Pension Public Yojnaaye] Provident Equity/ Funds Bonds & Debentures Shares [PPF] [investment in BUY stocks] 59 52 51 82% Savings Bank Account 50 For extra income when earnings are reduced due to serious illness or accident 39 Wealth generation and conservation 28 To provide for financial contingencies and life style requirements 21 To save tax To finance key milestones in life² For financial protection Sabse Pehle Life Insurance For constant income after retirement Life Insurance Council IAC Study by Hansa Research, February 2022 1. 36 2. % of respondents • Life insurance ranks amongst top 3 financial instruments Importance of life insurance as an instrument largely remains same across age groups and gender Across age-groups and regions, savings for key milestones in life like child's education, marriage, remains the top reason to buy insurance Tax savings features at bottom of the list of reasons to buy life insurance HDFC Life#37Customer Insights Women Policyholders - HDFC Life Customer Insights Participation of Women in Life Insurance¹ 3-year APE CAGR growth for women customers: 23% Women constitute >30% of policyholders, an increase of 4 percentage points over past 3 years Live your life your own way Women as a customer segment are gaining traction in Savings and Protection products Percentage of female policyholders 69% 31% 73% 27% HDFC Life Private Insurers Male Female Top 5 states where % of female policyholders is higher than all-India average . • Women comprise roughly 49% of the total population in India In 19 States/UTS², the share in no. of policies bought by women to the total policies sold is higher than the all- India average of 33% Increasingly, more women customers are opting for self State Share (%) assisted sales channels, Kerala 43 indicating rise in awareness levels Sikkim 41 Andhra Pradesh 40 Women Persistency across Lakshadweep 40 demographics & geographies ~4% higher than Organisation Puducherry 40 All-India average 33 1. Insights based on IRDAI Annual Report 2020-21 and HDFC Life customer data 2. UTS: Union Territories 37 HDFC Life#38H Agenda My 1 Performance Snapshot 2 Our Strategy 3 Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#39Exide Life Performance Snapshot: 12M FY22 Scale Individual APE Rs bn: 7.3 Growth: 22% AUM Rs bn: 196.8 Profitability & Cost Customer & Capital Others VNB Margin (Pre-OR) FY22: 44% FY21: 35% Opex ratio FY22: 22% 13M Persistency FY22: 78% FY21: 75% Claim Settlement Ratio FY22: 99.1% FY21: 98.5% Channel Mix¹ Agency: 57% Banca: 7% Broker: 22% Direct: 14% Growth: 12% FY21: 21% Renewal Premium Embedded Value Rs bn: 29.1 FY22: 25.7 Growth: 8% FY21: 24.2 39 1. Based on Individual APE Solvency Mar 31, 2022: 217% Dec 31, 2021: 202% Product Mix¹ Par: 47% Non-par: 36% Protection: 7% ULIP: 10% HDFC Life#40Integration - Focus areas Accelerating revenues. Augmenting proprietary growth channels Scaling-up with cross-entity best practices and brand value Realizing cost savings ... Optimizing nation-wide geographic presence (offices, branches, hubs) go Access to wider distribution network with focus on priority micro markets Rationalizing overlapping/ redundant spends E.g. Brand spends, software maintenance, AMC 40 40 Access to wider product portfolio for sales force Driving scale benefits for integrated entity Enhancing customer experience and sales productivity through digital tools Embedding digital operating model at scale. Aspiration to close NBM gap over 8-12 quarters HDFC Life#4141 Exide Life transaction timeline Step 1: Announcement of transaction (Sep 3, 2021) Step 3: Application filed with IRDAI and CCI for acquisition, ongoing interactions Step 5: Integration Phase-1 (9- 12 months) Step 7: Final approval for merger (expected in H2 FY23) ₹ HY ון 用 Step 2: Shareholders' approval for issuance of shares (Sep 29, 2021) Step 4: Receipt of approvals. Exide Life becomes 100% subsidiary of HDFC Life (Jan 1, 2022) Step 6: Application filed with NCLT for merging the two companies (April 22, 2022) Step 8: Integration Phase-2 (12-18 months post merger) Completed WIP To be initiated HDFC Life#42H Agenda My 1 Performance Snapshot 2 Our Strategy 3 Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#43Our ESG Strategy Ethical Conduct & Governance 5 pillars of ESG Strategy Responsible Investment Diversity, Equity and Inclusion (DE&I) Holistic Living Sustainable Operations ETHICS Actuarial Active engagement with external agencies including MSCI, S&P Global (DJSI) External Validation MSCI rating improved from 'BB' in October 2019 to 'BBB' in August 2020 S&P Global (DJSI) percentile improved significantly from 1 in 2019 to 61 in 2021 despite increase in participation by 60% Integrated report and ESG Report published in 2021 43 Financial ESG HDFC Life#44Ethical Conduct & Governance Governance structure & Compensation Framework STANDARDS COMPLIANCE POLICIES REGULATIONS RULES Risk management and BCM strategy accept RISK MANAGEMENT reduce control О Corporate governance policy Commitment to ethical business practices о Includes Corporate structure and stakeholder management Board Diversity policy Board evaluation & independence o Five independent directors 'Fit and Proper' as per regulation transfer Enterprise risk management (ERM) framework 'Three Lines of Defense approach' Reviewed and approved by the Board mitigate avoid Risk oversight by Board of Directors Review in multiple management forums Information/Cyber Security Information/cyber security ISO 27001:2013 and ISMS assessment program; Data Privacy Policy ① Fraud risk management Values program; Disciplinary Panel for Malpractices; Fraud monitoring initiatives Business ethics and compliances 30% women as on 31st March, 2022 Performance Management System based on the principles of balanced scorecard О Remuneration policy Seeks to balance the fixed and incentive pay Disclosed in the annual report Corporate Governance Award Best Governed Company in listed segment: Large category at ICSI¹ National Awards for Excellence in Corporate Governance о Modes of Risk awareness Trainings, E- mailers, Seminars, Conferences, Quizzes and Special awareness¦ Drives Sensitivity analysis and stress testing Business Continuity Management (BCM)- Creation of a recovery plan for critical business activities 1. ICSI: Institute of Companies Secretaries of India 2. PRSH: Prevention and Redressal of Sexual Harassment 3. BRR: Business Responsibility Report 4. DEI: Diversity, Equity and Inclusion 144 5. AML: Anti Money Laundering STOP Code of Conduct Whistle blower Policy PRSH² BRR³ & Stewardship Code COMPLIANCE AA 8 Do Privacy Anti Bribery & Corruption Policy Human Rights & DEI4 AML5 Policy Actuarial Financial ESG HDFC Life#45Actuarial Financial ESG Responsible Investment Responsible Investment Policy Objective To generate optimal risk adjusted returns over the long term RI framework RI and stewardship policy in place Applicable to all major asset classes Head of Research ensures that ESG is incorporated into overall Research and Investment process ESG issues covered in voting process Bolstering commitment towards Responsible Investment Became signatory to United Nations supported Principles for Responsible Investment (UN-PRI) PRI Principles for Responsible investment Sustainable Equity Fund What is Sustainable Equity fund & why invest in it? This fund shall seek to generate returns from investing in companies with high ESG standards and commensurate score, create value for all stakeholders with lower risks & generate sustainable long-term returns. Change begins with you. And your investments. HDFC Life ainable Equity Fund Responsible Investing with Sustainable Equity Fund. 45 HDFC Life#46Employee Engagement & Diversity, Equity and Inclusion (DEI) Actuarial Special Recognition Great Places to Work - Amongst top 100 Best Places о Great Places to Work for Women- Amongst top 100 Best Places Avtar top 100 Places о о CHRO was conferred Avtar Male Ally Legacy award Brandon Hall awards - Learning Strategy, Simulation training, & Social Talent Acquisition Attracting talent Hybrid work model and flexi hours to attract gig workers Robust employee referral schemes (>50%) Hire-train-deploy model through tie-up with reputed learning institutions HR tech: in-house application tracking system Training & development Career coaching and development interventions; woman mentoring Mobile learning app for self-paced learning Training for all including employees, contractors, channel partners / Virtual product training Skill Up: Curated online training programs from reputed universities Employee engagement Emotional and well being assistance program for employees and their families Doctor on Call: Unlimited free consultation E-Sparsh: Online query & grievance platform Family integration programs Platform for employee engagement: CEO Speaks, HDFC Life Got Talent, e-appreciation cards In-house fitness and wellness app Click2Wellness - Talent management/retention Special programs for campus hires; Talent development interventions for leadership Career microsite, job portal Internal Career Fair for employees Long term incentive plans in the form of ESOPS¹ and cash to attract, retain and motivate good talent Elaborate succession planning for Key Managerial Personnel, critical senior roles о Employee diversity, equity & inclusion Promoting DEI ally ship: leadership development, communication, strengthening policies, aligning workforce through Celebrate YOU program of the Company 26% women employees Celebrate YOU Promoting diverse talent pool (work profiles for second career women, specially-abled) - #MyJobMyRules Dialogue with prominent leaders on DEI; Fireside chat with Parmesh Shahani, LGBTQ activist Gender transition surgery covered under mediclaim policy Launched official DEI page on our website Gender neutral о Dress code policy о Maternity policy - Use of terms like primary and secondary caregiver instead of using terms like parents, mother/father, man/woman О О O О ○ о о 1. ESOPS: Employee Stock Options 46 Financial ESG HDFC Life#47Holistic Living: Inclusive Growth Our CSR Focus HDFC Life Swabhimaan strives to build sustainability in everything we do, but not limited to: P Education & Livelihood Health & Sanitation Environmental Sustainability The Swabhimaan Impact 3.5 lakh+ Beneficiaries 25 Implementation Partners 20+ Projects Swabhimaan HDFC Life Sarutha ke jiyo! This city forest is created with Akira Miyawaki method, based on the concept of "Potential Natural Vegetation" Plants are carefully selected to form a self-sustaining Bio-diversity. City forest would produce lot of Oxygen, reduce Carbon-Dioxide and improve the air quality. Scan QR Code for plantation details OR Visit www.cityforests.in Others 20+ States and UTS 66 SUSTAINABLE DEVELOPMENT GOALS Support 12 out of the 17 UN SDGS Rs 174 mn Total CSR Spent in FY 2021-22 47 Keshav Srushti WAVE AVE ARTE ARY. कृष्ण Atrei Actuarial Financial ESG HDFC Life#48Holistic Living: Delivering superior customer experience 48 88 Customer Centricity Journey simplification frictionless sales and service Simplifying buying journeys through platforms like LifeEasy (online term purchase) Contactless services- new normal 1. OCR: Optical Character Recognition Document simplification & elimination 0 Online claim processing for eligible customers via EasyClaims platform OCR: Enabling digital document submission and verification Straight through processing of maturity payouts for verified accounts Leveraging advanced technologies for personalization and better customer experience (CX) NEO Cognitive bots - policy queries answered within 2-3 clicks Personalization - Pre-approved sum assured for customers based on risk profile Digital Life Certificate for collecting survival proof from senior citizens Contactless branches by leveraging face recognition technology Actuarial Financial ESG HDFC Life#49Sustainable Operations Actuarial Financial ESG HDFC Life ◉ Energy and water 。 82% of air-conditioners with 3 or 5 star rating 。 94% of branches use LED based lighting system o Use of sensor based urinals and water taps 。 Implementation of switch rooms across branches resulting in reduced air-conditioning usage 。 Replacement of Uninterruptible Power Supply (UPS) with new energy efficient devices De-carbonization roadmap and way forward Key initiatives & action points for FY23: o GHG (Greenhouse gas) inventorization 。 TCFD (Task Force on Climate-Related Financial Disclosures) 。 SBTI (Science Based Targets initiative) Digitization - Reduction of Paper Usage Introduction of E-business cards & ID cards Waste management О О Online /e-forms for customers O Annual report FY20 & FY21 digitally communicated O Demat i.e. digital policy accounts for 38% of our new business Bio-diversity 。 11 city forests created using Miyawaki method; 69,603 trees planted in total Expansion to support solar on schools and water rejuvenation Business travel 40+ video conferencing rooms setup to reduce travel RECYCLE REUSE REDUCE о 26 tonnes of e-waste о о recycled/refurbished/disposed in FY22 Donated old IT assets to help under- privileged sections of the society No single-use plastics ☐ Bio-degradable garbage bags Cafeteria with reusable plates, cutlery,; wooden stirrers etc. Procurement of plastic water bottles discontinued at Pan-India locations 49 49#50H Agenda 1 Performance Snapshot 2 Our Strategy 3 Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#51Improvement in overall persistency trends¹ Across key channels (%) 93 88 87 83 80 78 73 70 Agency Across key segments (%) 95 90 85 72 66 Savings (Traditional) 99 66 53 53 97 97 22 92 88 79 71 Banca Direct ■13th month 25th month 37th month 49th month 61st month 62 82 73 71 67 51 93 80 87 60 80 75 68 69 92 22 90 90 86 CY (FY22) 81 79 Company 69 58 PY (FY21) 71 67 53 Savings (UL) Protection ■13th month ■25th month ■37th month ■49th month ■61st month Company 1. For individual business; Including single premium and fully paid up policies 51 Actuarial Financial ESG HDFC Life#52Improvement in overall persistency trends¹ Across key channels (%) 90 82 70 67 Agency 58 59 Across key segments (%) 86 77 68 64 54 89 78 66 99 62 62 57 Banca Direct ■13th month 25th month 37th month 49th month 61st month 90 82 79 70 65 10 61 60 Savings (Traditional) ထ 68 65 48 188 93 88 87 79 CY (FY22) 67 40 63 33 Company PY (FY21) 54 88 87 85 80 75 71 68 65 63 49 49 Savings (UL) Protection ■13th month ■25th month ■37th month ■49th month ■61st month Company 1. For individual business; Excluding single premium and fully paid up policies 52 Actuarial Financial ESG HDFC Life#53Improving VNB trajectory 22% Rs bn 1.3 0.8 26.8 3.6 0.8 21.9 FY21 Impact of higher APE Change in assumptions New Business Profile 1 Fixed cost absorption FY22 VNB Growth NBM% 26.1% 53 0.0% -0.8% 1.3% 1. 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 0.8% 27.4% Actuarial Financial ESG HDFC Life#54Sensitivity analysis - FY22 Actuarial Financial ESG Analysis based on key metrics Scenario Change in Reference rate Equity Market movement Change in VNB Margin 1 % Change in EV Increase by 1% -1.4% -2.0% Decrease by 1% 0.8% 1.6% Decrease by 10% -0.1% -1.4% Increase by 10% -0.6% -0.6% Persistency (Lapse rates) Decrease by 10% 0.7% 0.6% Increase by 10% -0.5% -0.8% Maintenance expenses Decrease by 10% 0.5% 0.8% Acquisition Expenses Increase by 10% -3.4% ΝΑ Decrease by 10% 3.4% ΝΑ Increase by 5% -1.2% -1.0% Mortality/Morbidity Tax rate² Decrease by 5% 1.2% 1.0% Increased to 25% -4.8% -9.1% 54 54 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#55Capital position NB premium growth ASM1 32% 15% 17% 20% 201% 188% 184% 176% 97.7 94.3 14.3 24.0 70.8 62.7 27.8 13.1 23.4 12.7 19.2 16.7 33.3 38.5 Mar 31, 2019 Mar 31, 2020 RSM @100% Incremental RSM @150% 46.9 55.6 Mar 31, 2021 Mar 31, 2022 Surplus Capital Solvency margin 2 Rs bn Cash payout of Rs 7.3 bn for acquisition of Exide Life reduced solvency by 13%. Excluding impact of this cash payout, solvency ratio would I have been 189% Sub debt raise of Rs 3.5 bn approved by Board, amounting to 6% of solvency Actuarial Financial ESG HDFC 1. ASM represents Available solvency margin and RSM represents Required solvency margin 2. Final dividend of Rs. 1.7 per share has been approved in the Board meeting on 26th April 2022; Final payout is subject to shareholders' approval in upcoming AGM and post payout, solvency ratio would be reduced to the extent of dividend paid Life 55#56Assets under management Debt: Equity 62:38 71:29 64:36 63:37 UL:Traditional 50:50 43:57 43:57 39:61 Change in AUM 1 Rs bn 466 303 18% 1% 37% 17% 232 35 2,042 165 1,738 131 1,256 1,272 Net change in AUM¹ 104 103 FY21 FY22 Mar 31, 2019 Mar 31, 2020 Mar 31, 2021 Mar 31, 2022 Net Fund inflow ■Net investment income ■Market movements YoY Growth Over 98% of debt investments in Government bonds and AAA rated securities as on March 31, 2022 1. Calculated as difference from April to March 56 Actuarial Financial ESG HDFC Life#57H Agenda My 1 Performance Snapshot 2 Our Strategy 3 Customer Insights 4 Exide Life Transaction Update 5 Our approach to ESG 6 Annexures 7 Life insurance in India#5858 2020 69.3 2040 Hong Kong Taiwan Singapore 14.0% 7.6% Japan 5.8% 4.0% 3.4% 3.2% 2.4% Malaysia Thailand 8,983 Growth opportunity: Under-penetration and favorable demographics 19.2% Life Insurance penetration (FY 2021) 1 Life Insurance density US$ ² (FY 2021) Life expectancy (Years) India China Hong Kong Singapore 4,528 Taiwan 3,861 Japan 2,329 415 244 241 59 Malaysia 1.4 1.6 1.7 76.1 7% 11% 17% 73.1 2060 Population composition (bn) 58% 61% 60% 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 (Based on respective financial year of the countries), MOSPI, United Nations World Populations Prospects Report (2017) 35% 28% 23% 2020 2040 2060 Less than 20 years 20-64 years ■65 years and above 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 Emergence of nuclear families and advancement in healthcare facilities lead to increase in life expectancy thus facilitating need for pension and protection based products HDFC Life#59a multiple of Income is <1x Low levels of penetration - Life protection 1.7 mn 172 mn 68 mn 83.0% 76.0% 74.0% 71.0% 70.0% 61.0% India Indonesia Malaysia Urban Working Population Addressable Market (excl blue collared) Annual Policy Sales Only 1 out of 40 people (2.5%) who can afford it, is buying a policy every year¹ 24 17 12 Even within the current set, Sum Assured as 8 3. Kotak institutional equities 59 1. Goldman Sachs Report, March 2019 2. Swiss Re (Based on respective financial year of the countries) Thailand China Japan Protection gap 2 (2019) Singapore South Korea Trend of retail loans 3 (Rs Tn.) FY10 FY12 FY14 FY16 FY18 FY20 34 4 42 Australia 55.0% 55.0% 54.0% 41.0% India has the highest protection gap in the region, as growth in savings and life insurance coverage has lagged behind economic and wage growth Protection gap growth rate is predicted to grow at 4% per annum Hong Kong Retail credit has grown at a CAGR of 18% over last 10 years Increasing retail indebtedness to spur need for credit life products ■ Immense opportunity given: Increasing adoption of credit Enhancement of attachment rates Improvement in value penetration Widening lines of businesses ◉ HDFC Life#60Macro opportunity - Retiral solutions India's pension market is under-penetrated at 9.3% of GDP 21.2 9.3 54.3 50.6 96.8 131.7 India Japan South Africa Hong Kong USA Australia Improvements in life expectancy will lead to an average post retirement period of 20 years Life expectancy at age 60 19 18 18 17 17 16 15 20 20 1995-2000 2005-10 2015-20 2030-35E Males Females Elderly population is expected to almost triple by 2060 7% Ageing population 11% 17% 67% 68% 66% 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 60 60 26% 21% 17% 2020 2040 2060 Age <15 Yrs Age 15-64 Yrs Age >64 Yrs HDFC Source: Milliman Asia Retirement Report 2017; Survey by NSSO, Ministry of statistics and Programme implementation Crisil PFRDA, Census of India, UN Population Estimates Life#6110 61 Life Insurance: A preferred savings instrument Household savings composition Financial savings mix 25% 22% 18% 19% 3% 11% 8% 12% 15% 13% 19% 18% 20% 52% 26% 17% 68% 65% 60% 14% 48% 32% 35% 67% 56% 51% 50% 40% FY10 FY13 FY16 FY20 ■Financial savings ■Physical savings Household savings as % of GDP FY10 FY13 Currency & deposits Life insurance Increasing preference towards financial savings with increasing financial literacy within the population Various government initiatives to promote financial inclusion: Implementation of JAM trinity Launch of affordable PMJJBY and PMSBY social insurance schemes Atal Pension Yojana promoting pension in unorganized sector Source: DBIE-RBI Statistics, RBI Annual Report, Economic Survey, CSO, www.pmjdy.gov.in FY16 ■Provident/Pension fund FY20 Others HDFC Life#62Industry new business¹ trends Individual WRP in Rs bn 288 269 262 230 203 273 175 304 178 292 H Sensex Private Players ■LIC 452 420 401 357 551 325 315 305 285 287 291 278 245 200208 227214 172 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Private players Market share 20 57% 52% 46% 37% 38% 38% 49% 52% 54% 56% 58% 57% 60% 63% Growth % Private 1% 7% -20% -24% 2% -3% 16% 14% 26% 24% 12% 5% 8% 22% LIC -22% 29% 4% 11% -4% -2% -27% 3% 15% 13% 5% 8% -3% 7% -10% 17% -9% -5% -2% -3% -11% 8% Overall 21% 19% 9% 6% 3% 16% 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 1.Based on Individual Weighted Received Premium (WRP) 62 Source: IRDAI and Life Insurance Council 62 Sensex HDFC Life#63Private industry: Product and distribution mix 63 43% Product mix 1 ■Unit Linked ■Conventional Distribution mix 2 Individual Agents Corporate Agents - Banks Corporate Agents Others Brokers Direct Business 57% 54% 52% 51% 51% 48% 49% 49% 61% 9% 10% 10% 12% 14% 16% 16% 56% 3% 703 20% 3% 3% 3% 20% 3% 3% 3% 3% 3% 3% 46% 44% 39% 47% 52% 54% 54% 55% 53% 55% 36% 32% 30% 28% 25% 25% 23% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY15 FY16 FY17 FY18 FY19 FY20 FY21 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 1. Based on Overall WRP (Individual and Group); 2. Based on Individual New business premia for all private players Source: IRDAI and Life Insurance Council HDFC Life#64Government bond auctions Government Bonds - Tenorwise Issuance 65% 65% 71% 72% 73% 79% 35% 35% 29% 27% 28% 21% FY17 FY18 FY19 FY20 FY21 FY22 I>15yrs Total <=15yrs 3,73,525 1,54,520 4,97,579 3,82,941 4,44,000 10,01,835 8,48,000 1,80,529 2,04,000 2,38,000 2,65,575 3,31,000 5,28,045 6,78,109 5,86,941 6,82,000 12,67,410 11,79,000 Auction of >15 year maturity bonds has been ~25-30% on an average facilitates writing annuity business at scale 64 Source: CCIL & National Statistics Office, Union Budget, RBI Rs cr HDFC Life#65Appendix HDFC Life#66Financial and operational snapshot (1/2) New Business Premium (Indl. + Group) Renewal Premium (Indl. +Group) Total Premium Individual APE Overall APE Group Premium (NB) Profit after Tax -Policyholder Surplus - Shareholder Surplus Dividend Paid Assets Under Management Indian Embedded Value Net Worth NB (Individual and Group segment) lives insured (Mn.) No. of Individual Policies (NB) sold (In 000s) 1. EV before cash payout for acquisition grew by 16% in FY22 2. Comprises share capital, share premium and accumulated profits/(losses) 66 FY22 FY21 Growth FY20 FY19 CAGR Rs bn. 241.5 201.1 20% 172.4 149.7 16% 218.1 184.8 18% 154.7 142.1 14% 459.6 385.8 19% 327.1 291.9 15% 81.7 71.2 15% 61.4 52.0 17% 97.6 83.7 17% 74.1 62.6 16% 125.1 100.3 25% 87.8 73.3 17% 12.1 13.6 -11% 13.0 12.8 3% 4.4 7.3 -40% 10.9 9.0 -10% 7.7 6.3 22% 2.1 3.8 29% 4.1 ΝΑ 4.0 NA 2,041.7 1,738.4 17% 1,272.3 1,255.5 18% (1) 300.5 266.2 13% 206.5 183.0 21% (2) 154.0 84.3 83% 69.9 56.6 22% 54.1 39.8 36% 61.3 51.4 -12% 915.3 982.0 -7% 896.3 995.0 -1% ◉ HDFC Life#6767 40 Financial and operational snapshot (2/2) Overall New Business Margins (post overrun) Operating Return on EV Operating Expenses / Total Premium Total Expenses (OpEx + Commission) / Total Premium Return on Equity Solvency Ratio Persistency (13M / 61M) Market Share (%) - Individual WRP - Group New Business - Total New Business Business Mix (%) FY22 FY21 FY20 FY19 27.4% 26.1% 25.9% 24.6% (1) 19.0% 18.5% 18.1% 20.1% 12.3% 12.0% 13.1% 13.1% 16.5% 16.4% 17.7% 17.0% ล 10.1% 17.6% 20.5% 24.6% 176% 201% 184% (3) 92%/58% 90%/53% 88%/54% 188% 84%/51% 14.8% 15.5% 14.2% 12.5% 27.9% 27.6% 29.0% 28.4% 21.0% 21.5% 21.5% 20.7% - Product (UL/Non par savings/Annuity/Non par protection/Par) (4) - Indl Distribution (CA/Agency/Broker/Direct) (4) - Total Distribution (CA/Agency/Broker/Direct/Group) (5) - Share of protection business (Based on Indl APE) 26/33/5/6/30 60/14/6/19 24/6/2/16/52 5.6% Share of protection business (Based on Overall APE) 13.6% 24/31/5/7/34 61/13/7/19 25/6/2/17/50 6.8% 12.8% 28/41/4/8/19 55/15/5/7/18 55/14/9/22 64/13/4/19 23/7/3/17/51 26/7/2/16/49 7.6% 6.7% 17.2% 16.7% Share of protection business (Based on NBP) 24.0% 19.6% 27.6% 27.0% 1. 2. 3. Pre excess mortality reserve (EMR) EVOP% is 19.0%; Post accounting for EMR, EVOP% stands at 16.6% Calculated using net profit and average net worth for the period (Net worth comprises of Share capital, Share premium and Accumulated profits) Individual persistency ratios (based on original premium) 4. Based on individual APE. UL: Unit Linked, Trad: Traditional, Par: Participating & CA: Corporate Agents. Percentages are rounded off 5. Based on total new business premium including group. Percentages are rounded off HDFC Life#68Revenue and Profit & Loss A/c Revenue A/c¹ FY22 FY21 Rs bn Profit and Loss A/c¹ FY22 FY21 i Premium earned I 459.6 385.8 Income I Reinsurance ceded (5.7) (4.6) I Interest and dividend income 4.8 4.4i Income from Investments 192.2 326.8 I I I Net profit/(loss) on sale 3.1 2.11 Other Income 1.5 1.6 I Transfer from Policyholders' Account 10.1 9.9 Transfer from Shareholders' Account 5.7 2.6 I Total Income 653.3 712.1 Other Income Commissions 19.4 17.1 Total 18.0 16.4 I | Expenses 56.1 45.9 Outgoings I I GST on UL charges 3.7 3.6 I Transfer to Policyholders' Account 5.7 2.6 I | ■ Provision for taxation 1.8 2.7 ! Expenses 0.4 0.4 I I i Provision for diminution in value of investments (2.6) (1.9) I I Interest on convertible debentures 0.4 0.3 I Benefits paid 300.5 217.5 I Provision for diminution in value of investments (0.3) (0.4)¦ Change in valuation reserve 246.8 408.3 I I Bonuses Paid 17.9 Provision for Taxation 7.9 (0.3) (0.1) Total Outgoings 643.7 701.2 Total 5.9 2.8 Surplus Transfer to Shareholders' Account Funds for future appropriation - Par Total Appropriations 9.6 11.0 Profit for the year as per P&L Statement 12.1 13.6 10.1 9.9 (0.5) 1.1 9.6 11.0 1. Numbers may not add up due to rounding off effect HDFC Life 68#69Balance sheet Shareholders' funds March 31, 2022¹ Mar 31, 2021 Share capital (including Share premium) Accumulated profits Fair value change I Sub total Borrowings Policyholders' funds Fair value change Policy Liabilities 86.7 25.0 67.3 59.3 0.8 2.1 154.8 86.4 I 6.0 6.0 21.7 25.6 I 1,043.4 855.2 Provision for Linked Liabilities 765.2 709.6 Funds for discontinued policies 41.0 38.0 Sub total 1,871.3 1628.4 I Funds for future appropriation (Par) 9.4 9.9 Total Source of funds 2,041.6 1,730.7 Shareholders' investment 152.4 85.4 I Policyholders' investments: Non-linked 1,083.1 905.4 Policyholders' investments: Linked 806.2 747.6 I Loans 6.4 4.2 Fixed assets 3.4 3.4 I Net current assets (10.0) (15.4) Total Application of funds 2,041.6 1,730.7 1. Numbers may not add up due to rounding off effect 69 Rs bn HDFC Life#70Segment wise average term and age¹ Average Policy Term excluding annuity (Yrs) FY22: 22.6 (FY21: 24.7) Average Customer Age excluding annuity (Yrs) FY22: 36.4 (FY21: 35.8) 12 UL 12 22 41 Par 42 Non-par Health 21 24 12 Non-par Savings 12 22 Non-par Protection 37 40 13 Non-par Pension 11 FY22 FY21 37 UL 37 33 Par 33 32 Non-par Health 33 37 Non-par Savings 36 34 Non-par Protection 34 56 Non-par Pension 55 FY22 FY21 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 70 70 1. Based on individual new business policies (excluding annuity) HDFC Life#71Summary 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 - - FY20 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 2020 Gsec yield curve Interest rate variation + changes in future persistency/ mortality experience Net asset liability position Changes by < 4.5% Changes by < 7% 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 HDFC 1. Opinion issued by Milliman Advisors LLP on ALM strategy (for non par business) based on FY20 disclosures 71 Life#72Indian Embedded value: Methodology and Approach (1/2) Overview Indian Embedded Value (IEV) consists of: ☐ ☐ Adjusted Net Worth (ANW), consisting of: - - Free surplus (FS); - Required capital (RC); and Value of in-force covered business (VIF): Present value of the shareholders' interest in the earnings distributable from assets allocated to the covered business, after making sufficient allowance for the aggregate risks in the covered business. Components of Adjusted Net Worth (ANW) ☐ Free surplus (FS): FS is the Market value of any assets allocated to, but not required to support, the in-force covered business as at the valuation date. The FS has been determined as the adjusted net worth of the Company (being the net shareholders' funds adjusted to revalue assets to Market value), less the RC as defined below. Required capital (RC): RC is the amount of assets attributed to the covered business over and above that required to back liabilities for the covered business. The distribution of this to shareholders is restricted. RC is set equal to the internal target level of capital equal to 170% of the factor-based regulatory solvency requirements, less the funds for future appropriations ("FFA") in the participating funds. 72 22 HDFC Life#73Indian Embedded value: Methodology and Approach (2/2) Components of Value in-force covered business (VIF) ■ Present value of future profits (PVFP): PVFP is the present value of projected distributable profits to shareholders arising from the in-force covered business determined by projecting the shareholder cash flows from the in-force covered business and the assets backing the associated liabilities. Time Value of Financial Options and Guarantees (TVFOG): TVFOG reflects the value of the additional cost to shareholders that may arise from the embedded financial options and guarantees attaching to the covered business in the event of future adverse market movements. Intrinsic value of such options and guarantees is reflected in PVFP. Frictional costs of required capital (FC): FC represents the investment management expenses and taxation costs associated with holding the RC. VIF includes an allowance for FC of holding RC for the covered business. VIF also includes an allowance for FC in respect of the encumbered capital in the Company's holdings in its subsidiaries. Cost of residual non-hedgeable risks (CRNHR): CRNHR is an allowance for risks to shareholder value to the extent that these are not already allowed for in the TVFOG or the PVFP. In particular, the CRNHR makes allowance for: - asymmetries in the impact of the risks on shareholder value; and - risks that are not allowed for in the TVFOG or the PVFP. CRNHR has been determined using a cost of capital approach. CRNHR is the present value of the cost of capital charge levied on the projected capital in respect of the material risks identified. 73 HDFC Life#74Embedded Value: Economic assumptions¹ Years Forward rates % Spot rates % As at Mar 31, 2021 As at Mar 31, 2022 As at Mar 31, 2021 As at Mar 31, 2022 1 3.95 3.87 4.34 4.25 2 5.31 4.52 5.65 4.87 3 6.27 5.04 6.70 5.41 4 6.95 5.46 7.43 5.85 5 7.42 5.80 7.90 6.20 10 10 7.97 6.71 8.36 7.10 15 7.52 6.95 7.97 7.34 20 7.06 6.96 7.57 7.36 25 6.76 6.90 7.27 7.32 30 6.59 6.82 7.08 7.25 74 1. Forward rates are annualised and Spot rates are continuous HDFC Life#75Glossary (Part 1) APE (Annualized Premium Equivalent) - The sum of annualized first year regular premiums and 10% weighted single premiums and single premium top-ups ◉ Backbook surplus - Surplus accumulated from historical business written ■ Conservation ratio - Ratio of current year renewal premiums to previous year's renewal premium and first year premium ■ Embedded Value Operating Profit ("EVOP") - Measure of the increase in the EV during any given period, excluding the impact on EV due to external factors like changes in economic variables and shareholder-related actions like capital injection or dividend pay-outs. First year premiums - Regular premiums received during the year for all modes of payments chosen by the customer which are still in the first year. For example, for a monthly mode policy sold in March 2021, the first instalment would fall into first year premiums for 2020-21 and the remaining 11 instalments in the first year would be first year premiums in 2021-22 ◉ New business received premium - The sum of first year premium and single premium. ◉ New business strain - Strain on the business created due to revenues received in the first policy year. not being able to cover for expenses incurred HDFC 75 Life#76◉ ◉ ■ ◉ ◉ Glossary (Part 2) Operating expense - It includes all expenses that are incurred for the purposes of sourcing new business and expenses incurred for policy servicing (which are known as maintenance costs) including shareholders' expenses. It does not include commission. Operating expense ratio - Ratio of operating expense (including shareholders' expenses) to total premium Proprietary channels - Proprietary channels include agency and direct Protection Share - Share of protection includes annuity and health Persistency - The proportion of business retained from the business underwritten. The ratio is measured in terms of number of policies and premiums underwritten. Renewal premiums - Regular recurring premiums received after the first year Solvency ratio - Ratio of available solvency Margin to required solvency Margins Total premiums - Total received premiums during the year including first year, single and renewal premiums for individual and group business Weighted received premium (WRP) - The sum of first year premium and 10% weighted single premiums and single premium top-ups HDFC 76 Life#77Disclaimer 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. 177 HDFC Life#78Thank You 21 YEARS Protecting India with Pride ◉ HDFC Life