SMC Investor Presentation

Insurance Industry Outlook • • • . • The insurance industry in India is expected to reach USD 280 Bn. Life insurance industry in the country is expected to grow 12-15% annually over the next three to five years. Insurance reach is still low in India. Overall insurance penetration (premiums as % of GDP) in India was 3.76% in FY20, providing a huge underserved market. India's insurance penetration was pegged at 3.76% in FY20, with life insurance penetration at 2.82% and non-life insurance penetration at 0.94%. In terms of insurance density, India's overall density stood at USD 78 Bn in FY20. Life insurance in India has a huge growth potential. By 2020, it was expected to account for 35% of India's total savings. Gross premium collected by life insurance companies in India increased from INR 2.56 Tn (USD 39.7 Bn) in FY12 to INR 7.31 Tn (USD 94.7 Bn) in FY20. In FY21, premium from new business of life insurance companies in India stood at USD 32.1 Bn. Motor insurance accounted for 32.59% of the non-life insurance premiums earned, followed by health insurance at 28.9%. The market share of private sector companies in the non-life insurance market rose from 13.12% in FY03 to 55.8% in FY21. Higher personal disposable incomes would result in higher household savings that will be channeled into different financial savings instruments like insurance and pension policies. Investor Presentation Source: IBEF Insurance Premium as a % of GDP smc Moneywise. Be wise. 0.70% 0.80% 0.90% 1.00% 0.90% 2.70% 2.70% 2.80% 2.70% 2.80% FY16 FY17 FY18 FY19 FY20 Life ■Non-Life Insurance Premiums Per Capita (In USD) 19 19 18 13.2 11.5 55 55 58 55 46.5 43.2 FY16 FY17 FY18 FY19 FY20 Life ■Non-Life 24 24

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