July 2008

Leadership in life insurance

2

Agenda

Indian life insurance opportunity

Organisational overview

Integrated framework

3

Agenda

Indian life insurance opportunity

Organisational overview

Integrated framework

4

11.4%

9.0%

7.7%

6.3% 6.3%

5.0%

3.1%2.2% 2.1%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

China India Singapore Malaysia HongKong

Korea UK US J apan

One of the fastest growing economies

India: FY 2008, Others: calendar 2007Source: International Monetary Fund and the Central Statistical

Organisation

GDP growth rates (2007)

5

Services sector growth

Industrial sector momentum

Favourable demographics

Knowledge capital Rural potential

7.5

9.09.4

9.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

FY 2005 FY 2006 FY 2007 FY 2008

GD

P g

row

th(%

)

Globalisation

CAGR during 1990s: 5.2%

Indian economy: Key drivers of growth

6

65+

15-64

0-14

Increasing proportion of working population

To further fuel India’s growth and rising disposable income levels

Shift towards nuclear families

Increased savings and protection needs

(Age group

) (percentage of population)

2006 2026

Source: Census of India

5

32

8

23

6963

7

Source: IRDA, Swiss Re

Penetration (as a % of GDP)

Insurance premiumper capita ($)

Number of players

1.2%

~6.51

1

FY 2000

NB premium ($ bn) 1.49

Total premium ($ bn)

6.27

CAGR of 40%CAGR of 28%

Evolution of industry since liberalisation

4.4%

18

FY 2008

21.62

~39.53

45.34

8

Agenda

Indian life insurance opportunity

Organisational overview

Integrated solution

9

Business context…our growth story

Employees

New business (in $ bn)

Branches

March 2006

March 2007

177 583

7,704 16,317

0.50 1.01

March 2008

1,956

29,216

1.51

# of policies (in mn) 2.31 4.46 7.75

Fitch rating of ‘AAA (Ind)’

Awarded most respected private life insurer

Sustained private market leadership for 7 years

10

Key strategic elements

Distribution

Rapid expansion of agency Multi-channel platform

Brand Creation of a superbrand

Product Comprehensive portfolio Innovative & flexible

products

People Talent from diverse

industries Career programs

Scale Pan India presence

Drive growth profitably

11

Agenda

Indian life insurance opportunity

Organisational overview

Integrated framework

12

External challenge External:

Supply demand mismatch 3.7 mn jobs expected to be created in services

sector alone (next 2 years) Scarce insurance sector specific skills

Younger workforce

Wage inflationWage

inflationJob inflationJob inflation AttritionAttrition

Wage increases highest in the

world

Wage increases highest in the

world

Incumbents working 1-2 levels below their intended levels

Incumbents working 1-2 levels below their intended levels

High attrition esp. at frontlineHigh attrition

esp. at frontline

13

Internal challenge Hypergrowth

Sustained growth of ~40% Scale

Increasing presence in tier II & tier III towns and cities across India

Competency requirements: New lines of business (health etc.)

Readiness risk

Readiness risk

Assimilation risk

Assimilation risk

Fitment riskFitment risk

Risk of underdeveloped

incumbents

Risk of underdeveloped

incumbents

Risk of slow learning in new

roles

Risk of slow learning in new

roles

Wrong person for the job

Wrong person for the job

14

The framework

Organisation design

Knowledgemanagemen

t

Organization DNA

Talentmanagemen

t

PerformanceEffectiveness

Attrition “agnostic” strategies

15

Organisation design Align people to overall goals of the

organization through balanced scorecard

Ensure clarity through metrics (KPIs) Track it through automation

Aggregate roles under functional “centres of excellence” Shared services model

Centralization of roles

Drive automation in people processes to manage scale

16

Knowledge management

Ensure “skill ready” supply base – instead of focusing on hire & train, change it to train & hire Insurance specific courses

Adopt enabling automation De skill the jobs without affecting

productivities Aid in decision making through dashboards

Invest in “job ready” training & certification

17

Talent management Differentiate performance

Through rewards Clear career paths…to enable growth internally Phase out poor performers

Identify “talent pool “ based on potential– leadership competencies Cast a wider net Cultivate a “talent scout” mindset among

managers

Poor performers

Solid contributors

High performers

15%

20% 30% 25%

10%Leaning Toward Disengagement

Neutral

Leaning Toward Engagement

18

Talent management

Interventions for the “talent pool” Design roles around people’s strengths Diagnose development and have candid

conversations with people Keep people challenged through roles on an

ongoing basis Talent as an organization resource – enterprise

wide visibility

Inculcate a strong proposition of learning & growth

19

Thank you