MFSL

MAX FINANCIAL SERVICES LIFE Ndk INSURANCE Max Financial Performance Update Investor Release Q1 FY22 August 10, 2021 w 18th Great an ked Place LEAD To 4 Work THE DIFFERENCE in India Certified Maims AAXIS BANKJ V A Max Financial and SECTION I  Max Financial Services : Q1FY22 Key Highlights 6 1V1.1 X Max Financial Services : Q1FY’22 Key Highlights LIFE INSURANCE 1 Application filed with IRDAI for acquiring residual ~5.17% stake from MSI in Max Life, at Rs 85/ share. Significant value F creation for shareholders on completion of transaction 2 Consolidated Revenue excluding investment income at Rs 3,420 Cr, grows 27%. Consolidated PAT at Rs 36 Cr, down 80%, owing to one-off tax refund, lower operating expenses and lower death claims due to COVID-19 induced lockdown I 3 VNB at Rs 172 Cr grew 53% y-o-y; NBMs (post cost overrun) at 19.7%, 260 bps improvement y-o-y, due to change in business mix 4 MCEV as at 30th Jun 2021 at Rs. 12,290 Cr; Operating RoEV at 13.5%, Including non-operating variances RoEV is 16.3% 5 Max Life market share improved by 63 bps to 11% … growth of 34% against Private Players growth of 26% 6 Max Life raised Rs 496 Cr through non-convertible debentures (NCDs), solvency margin strengthens by 17% to 214% Note: Consolidated Revenue including investment income at Rs 5,943 Cr grows 8% Investor Release 3 SECTION II  Max Life Insurance – Business Overview )MAX II MAX Industry Landscape (Q1 FY22): Total Industry grew by 16%, while Pvt. players grew by 26% and LIC LIFE by 4%. Max Life not only grew at 34% but also outperformed industry on 2-Yr CAGR basis as well YoY Growth basis Individual Adjusted FYP FY’20 FY’21 Q1 FY’21 Q1 FY’22 Q1 FY’22 (2 yearCAGR) -I It- • Max life grew by 14% 1% Private Industry 24% 5% 23% 26% on 2-year CAGR basis YoY growth while private industry de-grew by 1% 34% • Claims paid ratio 19% 16% 99.35% at the end of 14% FY21, one of the best in 6% 5% the industry and best 3% ever ratio reached • Industry • Max Life -4% -2% • Ranked 18th amongst ‘India’s Best Companies to Work For’ in 2021 -18% and Ranked 55 amongst ‘Asia’s Best Companies to Work Max Life’s private For’ in 2021 10% 11% 11% 11% market share Max Life’s total 6% 6% 6% 6% • #2 rank in customer market share grievances incidence rate in FY21 • • • • Source: Life Insurance Council | IRDAI Investor Release 5 II 6 1V1.1 X LIFE Financial Performance Summary Q1FY22 INSURANCE Pvt Market Share APE Gross Written Premium AUM 11% 63 bps Rs 875 Cr 32% Rs 3,484 Cr 27% Rs 93,697 Cr 28% [11%] [Rs 661 Cr] [Rs 2,751Cr] [Rs 73,239 Cr] Profit Before tax* Net Worth Policyholder Cost to Policyholder Expense to GWP Ratio GWP Ratio Rs 77 Cr -44% Rs 2,930 Cr 5% 23.4% 147 bps 17.4% 115 bps [Rs 138 Cr] [Rs 2,781 Cr] [21.9%] [16.2%] New business margin Operating RoEV Embedded Value^ Solvency 19.7% 260 bps 13.5% 240 bps 12,290 13.5% 197% -15% [17.1%] [15.9%] [10,670] [212%] VNB Policies Sold (‘000) New business Sum assured Protection Mix** Individual Group Total 172 53% 111 -10% 43,530 -13% 10% 9% 18% 680 bps [113] [123] [50,030] [14%] [11%] [25%] Figures in [brackets] are for previous year numbers. ^Growth on Embedded value is operating RoEV, * Profit is lower compared to last year due to higher operating expenses (effect of lower base) and lower death claims reporting last year due to lockdown**Group protection (incl. Group credit life adjusted for 10% for single premium and term business); Investor Release 6 6 Max Life has delivered strong performance on new business ; Maintained 4th rank in the private LIFE industry and increased market share by 63 bps '411111.6)filSURANCE New Business Premiums (on APE basis) Renewal Income Amount in INR Cr 21% Amount in INR Cr 32% 15% 19% 12,192 2,244 875 4,957 1,852 4,149 661 10,600 FY20 FY21 Q1 FY'21 Q1 FY'22 FY20 FY21 Q1 FY'21 Q1 FY'22 Mkt Share# 9.7% 10.8% 10.7% 11.3% Pvt IndRank 4 4 4 4 Individual Sum Assured of New business-13% decline in Q1FY22 due to de- Gross Written Premium growth in protection business, however market share improved to 16.1% Amount in INR Cr 27% Amount in INR Cr 40% 18% 19,018 3,484 2,22,682 1,83,019 2,751 -13% 16,184 50,030 43,530 FY20 FY21 Q1 FY'21 Q1 FY'22 FY20 FY21 Q1 FY'21 Q1 FY'22 Total APE includes Individual and Group Credit Life APE. It excludes Group term Loan # on AdjFYP basis Investor Release 7 II 6 1V1.1 X LIFE VNB increased by 53% over last year aided by increase in margins by 260 bps INSURANCE Product Mix – Increasing in NPAR savings while maintaining balance Margins (post-overrun)-Improved by 260 bps due to change in business mix 360 bps 260 bps 38% 37% 35% 37% 25.2% 21.6% 19.7% 18% } 17.1% 18% } 30% 27% } 11% 5% 13% 25% I 8% 5% 9% 14% 14% 18% 9% 10% 30% 19% 22% 17% FY20 FY21 Q1 FY'21 Q1 FY'22 ¤ FY 20 FY 21 Q1 FY'21 Q1 FY'22 • PAR • Individual Protection • Group Protection • Non PAR- Savings • ULIP VNB (post over-run) c Amount in INR Cr c -> 39% * 53% 2-year CAGR 13% 1,249 172 897 113 FY 20 FY 21 Q1 FY'21 Q1 FY'22 Investor Release 8 6 MAX Efficient capital management with consistent returns, best in class among financial services '4111111111I'NSIURANCE Opexto GWP*- Higher opex in Q1 due to lower base effect, improvement of Solvency Ratio (pre dividend) - Raised 496 Cr in July, strengthening 130 bps over 2-year solvency margin by 17% to 214% on June exit position -30 bps 115 bps 212% 207% 196% 197% 17.4% 16.2% 14.5% 14.2% 150% Solvency Limit FY20 FY21 Q1 FY'21 Q1 FY'22 FY20 FY21 Q1 FY'21 Q1 FY'22 Return on Equity (RoE)#- Lower Q1 FY21 claim experience owing to lockdown Underwriting Profits-Q1 FY21 profits were higher than run rate due to one caught up in rest of the year, impacting ROE of trailing 12 months offs like lower claims owing to lockdown and Tax refund Amount in INR Cr . Backbook Surplus . NB Strain . SH Surplus 24% 1189 1242 20% 19% 15% 319 255 111 141 89 41 -237 -225 FY 20 FY 21 Q1 FY'21 Q1 FY'22 -761 -860 Normalized for Tax refund and lower Q1 claim FY20 FY21 Q1 FY'21 Q1 FY'22 21% 17% experience * Refers to the policyholder expense to GWP ratio; # ROE is trailing 12 months PAT as a ratio of average Net worth for trailing 12 months Investor Release 9 II 6 1V1.1 X LIFE Embedded value grew at 16%, while operating RoEV for Q1 FY22 at 13.5% INSURANCE Embedded Value (EV) - EV has grown at 16% driven by growth in value of Operating Return on Embedded Value* new business and quality of inforce business Amount in INR Cr 19% * 16% 12,290 11,834 20.3% 18.5% 10,670 15.9% 9,977 13.5% FY20 FY21 Q1 FY'21 Q1 FY'22 FY20 FY21 Q1 FY'21 Q1 FY'22 *The operating RoEVfor Q1 FY21 was relatively higher due to positive operating variances in form of tax refund (~Rs63 Cr) and due to delay in reporting of claims in lockdown Investor Release 10 6 II MAX ,+,L IFE Max Life has consistently grown its Asset Under Management INSURANCE Assets Under Management - MLI is the 4th largest manager of ULIP: Healthy mix of Debt and Equity private LI AUMs, Par fund size ~48K Debt Equity Amount in INR ‘000 Cr 32% 28% 43% 90 94 52% 50% 57% 73 68 57% 48% 50% 43% 64 62 FY 20 FY 21 Q1 FY'21 Q1 FY'22 52 49 Controlled: Healthy mix of Debt and Equity 28 30 7% 8% 9% 10% 19 21 FY20 FY21 Q1 FY'21 Q1 FY'22 ULIP Controlled Fund 93% 92% 91% 90% FY 20 FY 21 Q1 FY'21 Q1 FY'22 More than 95% of debt investments is in sovereign papers and AAA rated securities Investor Release 11 II I, MAX Max Life has been recognised by a number of Indian and foreign business bodies for its excellence ‘0 LIFE in business, customer service and focus on people INSURANCE I S • L die Business Excellence Leaders in Quality Focus on People ▪ Awarded the Bronze for the YT connected ▪ No. 1 in Customer Loyalty ▪ Ranked 55th amongst ‘2021 TV campaign under the Campaign during survey by IMRB 55' RANK IN ASIA, Best Workplaces in Asia’ by Covid-19 lockdown award category at the AdgullyDigixx2021 awards ▪ Gold at ASQ World Conference Great Place to Work® ▪ Ranked 18th amongst ‘India’s ▪ Awarded Gold for Life Insurer of ▪ Winner of IMC RamkrishnaBajaj Great Places to Work For’ in the Year at Outlook Money National Quality Award 2021 THE Awards 2020 ▪ Winner of CII Industry Innovation Award STOMER FEST SHOW 2021 ▪ Won 3 awards for Best use of use of ▪ Max Life recognized in India's ▪ Asia Pacific Quality Organization (APQO) Ranked Great Relationship Marketing in Loyalty Program, 1 8th Place Best Workplaces in BFSI 202 award for global performance excellence To Work. Best use of Gamification to enhance Loyalty ▪ Employee Engagement GL CAL and Best Use of Data in Marketing Analytics AD 0 ▪ Silver Award in ASQ ITEA 2019 for Sell in India Certified Leadership Award for “Best use CUSTOMER Right for Customer Delight at Axis Bank ENGAGEMENT at the Customer Fest Awards 2021 of the Employee Award” 10112111.AWARDS India's Best Companies t ▪ Won 7 awards across various categories ▪ Silver Award in the 12thQCI-DL Shah to Work For 2019 ▪ Employee Engagement including Television, BTL activities, Mobile Quality Awards for Enhancing S2R Leadership Award for “Best Social marketing and Customer service at the 10th Conversion% Select 60 offices in Agency. Responsibility” ACEF Global Customer Engagement Awards ▪ At CMO Asia Awards , won Best Term ▪ MD and CEO, featured in Impact ▪ BFSI Smart Tech Awards 2019 -IPQ won the Plan Company of the Year Digital Power 100: Business Best Use of Data and Analytics Leaders List 2020 ▪ Won ‘Excellence in Digital Sales -Life ▪ Director and CMO, featured in Category’ at FICCI Insurance Industry Impact Digital Power 100 : Awards 2020 Marketing Leaders List 2020 Investor Release 12 SECTION III  Max Life Insurance – Strategy )MAX II LIFE Significant progress made across key strategic priorities INSURANCE d M A B C D Digital Predictable & Sustainable Product innovation to Customer centricity across the value Digitization for efficiency and growth drive margins chain intelligence ▪ Deepen Bancassurance ▪ Increase protection penetration ▪ Improve position in 13M and 61M ▪ Continue with digitization agenda across partnerships persistency ranking the organisation ▪ Drive Non PAR saving S ▪ On-board new distribution partners E ▪ Highest Relationship Net Promoter ▪ Build intelligence (AI) in all digital assets V ▪ Scale up existing proprietary ▪ Tap into new growth opportunities like I T A channels health and retirements Score (NPS) in the industry ▪ Minimize back-office costs I T ▪ Opportunistic play for inorganic ▪ Enhanced investment and mortality risk I N growth management I ▪ Proprietary sales grew only by 5% ▪ VNB Grew by 53% ▪ Improvement in 13M and 61M ▪ 100% of all policies digitally sourced – due to COVID related restrictions persistency 85.1% (+320bps) and 54% ▪ 100% recruitment enabled through ▪ New protection product (Smart Secure) (+160bps) respectively digital d ▪ Strong growth of 49% in Banca launched in Q1 with cautious approach in e channels underwriting ▪ Claim paid ratio at 99.35% at the end of ▪ 85% requests enabled through digital v e FY21, among the best in the industry self service means i h c ▪ Leadership in protection sales across ▪ Launched Anniversary Editionof Smart ▪ Max Life Innovations Lab 2.0 –213 a s web aggregators and in Direct wealth plan ▪ Grievance Incidence Rate of MLI ranked applications received; 4 start-ups were s purchase 2 within private industry in FY21 (GIR e selected to work on different use cases. r g ▪ Annuity grew 88% YoY for Q1 FY22 31) Currently in POC stage o ▪ Key Partnerships: IndWealth, Ditto, r P ▪ Progressing well on AI and modernizing Tata Motors Insurance Broking, ▪ Highest ever Brand Consideration^ at IT journey Policy Bachat 67 (YoY: +7) for Q1 with “always-on” strategy ^as per Nielsen Brand Track Study Investor Release 14 ), MAX A `.0 LIFE Max Life has focused on ensuring growth in both its Proprietary and Bancassurance channels INSURANCE Proprietary Channels New Business (APE) Amount in INR Cr Channel Mix - Max Life has focused on maintaining a balanced distribution CD 2-year CAGR 7% mix 3.0cY0 1,403 1,282 5% 1% 0% 1% 0% 248 260 62% 68% 71% 70% FY20 FY21 Q1 FY'21 Q1 FY'22 Bancassurance Channel (APE) 37% 31% 28% 30% Amount in INR Cr FY20 FY21 Q1'FY21 Q1'FY22 CD 3,529 2-year CAGR 16% 24% Proprietary Banca Others 2,838 Axis’s 57% 63% 56% 63% 49% Share 612 411 FY20 FY21 Q1'FY21 Q1'FY22 Investor Release 15 ), MAX Product mix in proprietary and Bancassurance channels aligned to customer needs; A `.0 LIFE Protection driven across all channels INSURANCE Proprietary Channels Product mix - biased towards traditional products and Bancassurance Product Mix - has been biased towards ULIPs to cater to protection for driving margins target customer segments 15% 22% 26% 26% 22% 47% 45% 48% 10% 21% 14% 52% 17% • ULIP 23% 27% 28% • NPAR-S • ULIP • NPAR-P 24% 36% 23% • NPAR-S 33% • PAR 4% • NPAR-P 47% 10% 34% 33% 35% 4% • PAR 25% 3% 19% 14% 12% FY20 FY21 Q1'FY21 Q1'FY22 FY20 FY21 Q1'FY20 Q1'FY21 • • Investor Release 16 )MAX Max Life has a complete suite of products and focus is on selling longer term products along B LIFE with improving penetration of pure protection offerings INSURANCE Average Policyholder Age Average Policy Term Average PPT Max Life has products across all categories Product Type (Years) (Years) (Years) Endowment 35 22 10 5 1 Protection plans Health plan 4 1 Income plans Annuity plan ULIP 38 14 9 4 1 Endowment plans Retirement ULIP Whole Life 36 64 52 4 1 ULIP plans Whole life 2 4 Money back 27 17 17 Child plans Riders Current portfolio1biased towards traditional Pure Term 35 37 33 products Guaranteed ■ 43 19 9 Cancer/ Retirement, products Health, 1.3% 0.2% Health 38 20 20 UL, 18.2% Cancer Insurance 38 29 29 Whole Life, 6.3% Pension 33 23 23 I Term, 15.5% Annuity 62 58 1 Money back, Endowment, As on 30th June 2021 2.0% 52.9% 36 25 16 Guaranteed Products, 3.5% Average Average Average (1) Based on all policies sold till date Investor Release 17 )MAX Strong focus towards customer measures has helped deliver superior performance across C LIFE health parameters and will continue to remain an important priority Claims Paid Ratio- One of the best claims paid ratio in the industry Surrender to GWP- Higher surrenders in ULIP 117099 bbppss 99.22% 99.35% 98.74% 98.26% 26% 21% 19% 15% FY'18 FY'19 FY'20 FY'21 FY20 FY21 Q1 FY'21 Q1 FY'22 Persistency*- 83% 84% 82% 85% 71% 71% 68% 69% 63% 63% 61% 61% 59% 58% 57% 57% 52% 54% 52% 54% 13th Month 25th Month 37th Month 49th Month 61st Month 11M FY20 11M FY21 Q1 FY'21 Q1 FY'22 Investor Release 18 )MAX L MAX C LIFE Significant increase in claim experience in Q1 owing to wave 2 No of claims-1.3X from first peak in Q3 FY21 Gross claims- 2.1X from first peak in Q3 FY21 Net claims- 1.6X from first peak in Q3 FY21 Figures in Rs. Cr. Figures in Rs. Cr. 13,492 1,031 10,525 563 484 345 4,689 175 126 Q1 FY21 Q3 FY21 Q1 FY22 Q1 FY21 Q3 FY21 Q1 FY22 Q1 FY21 Q3 FY21 Q1 FY22 ▪ Provisionsof~Rs500crarebeingusedtoneutralizetheexcessCOVIDclaims. ▪ 91%ofeligibleemployeesreceivedfirstdoseofvaccination ▪ ActiononGroupportfolio: ✓ GroupTermLife(GTL):Cautiousapproach–discontinuedsourcingnewaccounts,selectivepriceadjustedrenewalsofprofitableaccounts ✓ GroupCredit:Non-medicallimitsreduced;re-negotiation&exitfromselectGroupcreditaccounts ▪ Range of actions in place to control mortality such as stringent underwriting measures (Restrictions around large sum assureds, higher age and extra mortality for sub standard lives, six-sigma analysis on current UW quality check process, re-evaluation of the underwritten base), mandatory physical medicals -blood tests including HbA1C, TMT ▪ Increase in premium rates from July’21 on Individual protection plans, group cases are monitored case to case basis J Max Life Insurance 19 IL MAX Max Life Leader in E-Commerce Protection Sales enabled by higher adoption of digital assets LIFE D and embedded intelligence in the entire operating model INSURANCE Sharper Prospecting Personalization Growth and Awards Chase VALUE not Traffic Never Ask Again 0 amazon % of customers through ecommerce (Website + Aggregators) 18% 16% 16% Google Marketing Platform Outbrain Hi Vaibhav! 14% 12% r• ,avr~ Mu Continue protecting yawn Tabela loved ones with a twin pLaii 10% Seprch AU* 31.0 0 tag ManogEr 360 8% 6% 4% 1: • 1 • 1 • : • : •• : 1. = 1 1 . 6 ..=•••• 111 1 O , m 11 m m • p You'v fi e n an iinn c cchh ia eedd l se c c l u o r s i e ty r to 4% 2% 0% FY16 FY21 ▪ Advertising Optimization signals based on Continue with your e-quote number ▪ 8x growthover4years Customer Lifetime Value Quote details are sent via email and SINS ▪ Won the coveted FICCI Insurance Industry ▪ SEO expertise:Share of focus keywords in 6999HUQB Continue award 2020 for Excellence in Digital top3/top5 ranking o Top 15 keywords Top 3 Search Results – Sales in Life Category 53% 1 o Top 100 keywords Top 5 Search Results – COVID-19: Updates and resources for you ▪ Multiple Case Studies with Google (3), 45% Facebook (1) and Adobe (1) across Digital ▪ Home Page Personalizedfor every user basis Advertisingand Digital Experience the last action by the user Source: Webmaster Console Investor Release 20 ),MAX Seamless on-boarding of customers through Best-in-Class On-boarding Platform (mPRO); D ' LIFE leveraging integration with Bank partners for customer data INSURANCE 1 B2C On-boarding Platform Frictionless Onboarding mPRO Step 1,4 Ramesh. asterrinycu 14 Update o TemR s , Coypu, ems pbe for metkalsocelveth a iu tu r t r PRO PRO 0 mad mere proar. PI111e bprier Inearb• tool Amount InchaStabk 41,303 0 PP fa 9 Lumpsum Payout UN Coen Select Payment Method 5 :i:r °. `;=. P D e t r t m vi , l ' s a I SW Product Delalls Personal Detaels 50,00,000 ?A LE f ay 11 0.. Policy Number 331273763 Core Till Age RA: loyal, 60 years .....—fiiruhe infermalion Pending dr—Ar rife 4fArewt, Pe/NIA, lye wept 121 Submission Status Congratulations 1. You are not required to undergo any medical examination and Payee esosity Payd aged° no financial documents are required to be submined. Expitte rare-0room Advance Search This is a clear case and does net require Meat* V underwriting BCok orth e1 ... • C roM1uageisl I Pay 4201, get Adtgoorrartiuns Now it welts? r• Experian Tnmsaveuri ID Policy /dumber rend of PelkyTem • . • . Seller Declaration 1100205.92 VraIrr• ul.r• Ann •••••• • ma.1% (Av....1.••••• Pay 11,303 DOCSAPP TailPiiment Readeecsr, 494 klareti,•3 • 4,4:044 W1' <$ Secs Top 3 ▪ State of the art Integrationstackwiththird ▪ 100% Digital journey, centralized document Page Load Time SEO Ranking parties ensures ~70% of B2C Term uploadandrealtimededupe&underwriting AI enabled Personalized customers are on-boarded without any ▪ 100%adoption Sales offers document requirement ▪ 75%reductioninQCTATand~72%FTR Investor Release 21 mAx I Industry first Digital ecosystem to drive agent Recruitment agenda at scale (mREC); end-to-end FE D agent recruitment platform facilitating faster agent prospecting and onboarding INSURANCE 11 MINIt 1111 111111 ?1 1-3` 16iDEc it REC REC < Ansi Saceimax fieretimentx1inn Office View Bucket View Mr. Abased, Enatitian What would you like to do today? Review Form AI/ML Enabled 'leer Leads 0 - 6x Im , po ex rt p a a n n t d In a f n o d rm re a v t i i e o w n each sections. For unfilled or auto screening ix I q 0 AASN1 77 Leads O e fr e ch rr e o c r k s e bo ct x io in n t p h le e a e s n e d f i o ll f t t h h e e e p m ag p e ty t o fie m ld o s v f e ir o st n a t n o d n e cl x ic t k s t o e n p of profile Career Seminar 0 ABBN1 164 Leads O Create new lead Career Interview 0 ABBN2 179 Leads O Personnel Details Forms & Daus CI URN Requested CI ABBN4 70 Leads O Educational Details URN Generated 0 ABKR1 134 Leads O Manage Existing Work Details Digital Training IS Exam CI "WI ABRD1 195 Leads O Webinar Agent Coding 0 3 ABRM1 72 Leeds 0 Bank Details Rejected 0 Assigned Leads C ADBR2 46 Leads 0 Nominee Details ADHN1 1521 Leads 0 Discrepancies AGAN2 42 Leads O ExistingRelationshlp Details AGAY1 133 Leads Training Details AGUW1 411 Leads 0 AGUW3 1025 Leads O Review Docs Cr Download Lead Scotus Funnel New Age responsive web app for 100% Digital Journey powered by Intuitive Dashboard for Funnel Inbuilt supervisory views for Real digital recruitment with seamless ecosystem integrations like CRIF etc. Tracking time governance integration with MLI Core systems Int ft u ow Avg campaign leads- 50% reduction Avg. We Y d b R o n ecruitment 40% efficiency Avg new leads every iK approx. 3.3k every month in TAT 3KD/month in Cost month-~24k Leads Investor Release 22 ), MAX D `.0 LIFE Omni-channel Customer Servicing Experience; services simplified through 24*7 digital offerings INSURANCE Chatbot-MILI Website-Self Servicing Website Help Center Servicing for Sellers WhatsApp MAX g POWER cf° AP Max Life Insurance LI Help Centre 0 Er MAX Sign I =FF. Hello Mahesh, How can we help you? Offering term insurance Here are your 3 policies @ 495 per month* Q Policy number EOM Describe your issue 310204409 Max Life Life Can Premier -15 Mr a Pay 0 Dear MR. ANKUR SINGH, = Your payment of Rs 24805.91 is successful Most asked questions _2111 8= f1 r Polity NO. 874563323. Your premium is due Mame Customer Tra,,clion No. for your reference is IC. sie Policy summary VHN/F9762868799. 49,999.e ow. am Fr,' viI I be sent to your E-mail ID 7? I I OTMAILCOM and Mobile no Detailed summary of my policy I m Priem. Agent Briefcase Service IC withln 3 working days from date Modal premium cue date 0 the r NLIM is applied in the policy_ Hi, I'm Mill 43,993.98 Meal Can 31/03/2021 10 clay, IA Personal details 000 Thank You, Your online assistant I IN ns A u N r A e N d u n n a a m A e lla rl RUM P T 4 ot . a 2 l 3 c ,2 o 1 v 1 e 0 r 0 Next renewal premium date and amount amMays Porms NKr r- Max Life Insurance I will help you suggest the right Sew Policy Details Payment option chosen currently 0 You're receiving mcssusse from this btlsmays term plan according to your need 1Servirving PASO Elq,611, spi REPORT Policy maturity date I Policy number 0 BLOCK 233653765 Total sum assured Lets get started roily NAY Nnowiecige Center MGM ',Recall. IS CONTINUE Chatbot for servicing Website allowing customers to Extensive personalized guide All servicing options available Servicing options available self-serve for all queries to sellers on WhatsApp 60L+ self-service transactions annually 3X increase in number of work types 200k+ transactions on 1.5L+ Cross-Sell leads generated 85% adoption available digitally in 12 months conversational interfaces through digital channels annually Investor Release 23 6 MAX D LIFE AI smarts delivering intelligence to enhance customer experiences and risk selection INSURANCE Business First Integrated AI AI integration across Max Life New Business Purchase & Issuance Servicing & Retention Machine Learning & Deep Learning y 40> g o C-360 14 l TU-RING o n h Proactive Customer Engagement & Retention c Customized customer offers with propensity & 360 Risk assessment with Persistency, Fraud & e with DL based recommendations t Speech AI Mortality risk prediction Product recommendation I A (ASR & STT) e v i CoreConverse t i P-Track wwiNwingind n g o Upfront Query Resolution with unified c d Vision AI Upfront policy issuance visibility with issuance Fincheck intent prediction and response bot e Computer Vision probability & TAT Automated document verification & Financial analysis i l p & OCR with OCR 4i0 p A ylive HUB ver Conversational AI NLP & BOTs Customer insights and sentiment for sales Renewal Income & Persistency Forecasting & effectiveness with Speech Analytics Computer Vision based Auto verification Real time monitoring AI Foundations Dedicated AI Team (AI works) AI Accelerator program for Getting Data Rich with partnerships Data Lake & Cloud Strategy 1 2 3 4 with talent from top institutes partnerships & Investment with new with bureaus to better understand with AWS to enable advance AI (IIT/ISB) Age AI startups customer needs & fuel AI use cases 16 )MAX II LIFE Our Sustainability Strategy revolves around four pillars INSURANCE Engaged with external and internal stakeholders to discuss on ESG parameters and developed Max Life’s Sustainability Framework Identified key focus areas and material issues pertaining to Max Life Four Pillars of Approach to Sustainability s a e r A O s u c • o F A dBi Digital A C \ D G NMI S Green Operations E Work Ethically & Sustainably Care for People & Society Financial Responsibility ▪ Robust Corporate ▪ Diversity & Inclusion ▪ Sustainable Investing ▪ Waste Management Governance ▪ Employee Development ▪ Financial Empowerment ▪ Water Management ▪ Ethics & Compliance ▪ Health & Wellness programs ▪ Product responsibility ▪ Energy efficiency , ▪ Digital Initiatives u ▪ CSR Initiatives ▪ Customer feedback integration ▪ Emissions control ▪ Ethical usage of Data Investor Release 26 II ), MAX o `4 LIFE Key Focus Areas: Work Sustainably & Ethically INSURANCE ▪ Diverse Board composition with Independent Directors in Board (50%- MFSL; 30%- Max Life Insurance) ▪ Average board experience > 30 years ▪ Information security and cyber security compliant with ISO guidelines ▪ Platforms, mechanisms, channels in place for grievance addresses, incident investigations and corrective actions, for example -MyVoice, Ethics Hotline & Disciplinary Action policy (for agents and employees). ▪ Ethics Hotline is a dedicated whistle-blower platform, which is managed by an independent external partner ▪ Max life has management approved policy as defined in the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH Act”) ▪ The company has Board/board committee approved Business Code of Conduct, Anti Bribery, Gifts and Meals policies, along with certain other policies to drive the Ethical culture at workplace. The Company has laid down its Business code of conduct by adopting the following practices and policies: I. Employment conduct II. Compliance to Laws, Rules, and Regulations III. Compliance Self-Certification IV. Framework for Managing Conflict of Interest V. Whistle-blower Policy VI. Anti-Bribery and Anti-Corruption Policy VII. Anti-Money Laundering/Counter – Financing of Terrorism Policy VIII. Information Security Policy IX. Gifts, Meals, and Entertainment Policy WWoorrkkiinngg SSuussttaaiinnaabbllyy && EEtthhiiccaallllyy Investor Release 27 II MAX ' LIFE Key Focus Areas: Care for People & Society - INSURANCE Diversity Inclusion ▪ Gender diversity at Max Life improved to 23.3% as on FY21 ▪ Initiatives and programs launched to develop women employees for future career development roles ▪ Awareness and sensitization programs launched on D&I initiatives Employee Development ▪ In FY’21 employees underwent close to 29000 training man days across 50 training programs ▪ We promote internal talent mobility and in FY’21, 45% of our mid to senior roles were closed internally ▪ In June 2021, Max life was ranked as the 18th Best Company to work for in India by Great Places to Work Institute Health & Well-being ▪ We provide Counselling & Mental Well-Being sessions to employees & family members through third party health services partnerships ▪ Tied up with hospitals for Vaccination camps for employees across India ▪ During Covid, a dedicated support helpdesk was set up with 8-employees and 22 regional Covid Response Officers across states for 24/7 support to employees ▪ Direct empanelment of Doctors and Health service providers to ensure all employees and their families have CCaarree ffoorr PPeeooppllee access to doctors, required pathology tests conducted at home, ambulance services on call, etc ▪ 4 virtual CSR volunteering sessions conducted in Q1 FY22 on financial literacy, health, hygiene & Covid Safety a with a participation of 400 beneficiaries ▪ Conducted food distribution drives in Jamshedpur and desktop installation drives in schools for Kids (Asha School, Birpur) in Q1 FY22 ▪ 600 migrant workers in Siliguri were distributed ration ▪ Continue to impact society through specific initiatives on environmental preservation (56000+ trees planted in Caarree ffoorr SSoocciieettyy FY21), Financial Literacy sessions, malnutrition curbing programs, Joy of Giving, etc Investor Release 28 6 MAX LIFE Key Focus Areas: Financial Responsibility 1111116)NSURANCE Responsible Product Offerings ▪ Specially designed micro insurance products cater to socially and economically weaker sections. In FY21, we covered ~18 lakh lives (sum assured of 4,563 crores) ▪ Lower premiums offered to women policyholders. Currently, 28% of our individual life policies cover women ▪ Launched a Critical Illness rider to cover up to 64 critical illness in FY21. A lump sum payout on diagnosis under this policy complements any existing health insurance ▪ Introduced a wellness app which encourages our customers to be active Responsible Investments ▪ As part of current investment decision process, we look at the Governance aspects of the investee company in great detail, actively vote on resolutions and engage with investee companies on important matters. We will continue to follow the current rigorous emphasis on Governance and include the social and environmental aspects in our research and analysis ▪ As a responsible investor, post-investment, MLI monitors the financial performance as well the governance practices of investee companies on a regular basis ▪ Implemented a stewardship policy and also disclose a detailed summary of our voting actions under the stewardship code on a quarterly basis. The Audit Committee maintains oversight on the voting mechanism Customer Feedback Integration ▪ Focus on integrating customer feedback through Net Promoter Score - improvement in Net Promoter Score continued in Q1 FY22 FFiinnaanncciiaall RReessppoonnssibibiilliittyy Investor Release 29 II )MAX Key Focus Areas: Green Operations INSURANCE Energy Efficiency ▪ Home Office (HO) building is a LEED Platinum certified building with “5 star rating” in health and safety by British safety council ▪ Home Office building (Fulfilment center) initiated double glazing tinted glass material for building façade for maximum use of natural daylight ▪ Solar systems are installed in Home Office building Waste Management ▪ Dry and wet waste segregation process is implemented in HO ▪ Replaced disposable cups with ceramic cups and saved ~9 lacs paper cups in Home Office in FY21 ▪ Saved 800 Kgs of plastic garbage bags at HO in FY21 due to replacement of plastic dustbins with steel dustbins and Garbage bags savings Water Conservation ▪ 100% water is recycled in HO ▪ Saved 60% water by installing Sensor based taps in washrooms at HO ▪ Water aerators are installed to help conserve water by 60% Emissions Control ▪ To keep environmental health and air quality, placed ~2100 indoor plants in HO in FY21 GGrreeeenn OOppeerraattiioonnss Investor Release 30 SECTION V  Max Life Insurance – MCEV Disclosures: Q1 FY’22 II 6 1V1.1 X LIFE Key Results INSURANCE I The Embedded Value1 (EV) as at 30th June 2021 is Rs 12,290 Cr. I The Operating Return on EV (RoEV) over3M FY22 is 13.5%. Including non-operating variances, the total RoEV2 is 16.3%. I The New Business Margin (NBM)at actual costfor3M FY22 is 19.7%, with Value of New Business (VNB) written overthe period being Rs 172 Cr. Notes: 1 Max Life’s Embedded Value (EV) is based on a market consistent methodology. However, they are not intended to be compliant with the MCEV Principles issued by the StitchingCFOForumFoundation(CFOForum)ortheActuarialPracticeStandard10(APS10)asissuedbytheInstituteofActuariesofIndia. 2The Return on EV for 3M FY22 is calculated as 3.9% (growth in EV) annualized to 16.3%. Investor Release 32 )MAX II LIFE Progression of Embedded Value INSURANCE 12,290 11,834 10,670 9,436 9,066 7,894 2,776 2,768 2,854 Q1 FY21 FY21 Q1 FY22 • • Net Worth (NW) Value of Inforce (VIF) i 1. EV as at 3M FY22 represents an increase of Rs 456 Cr from the EV of Rs 11,834 Cr as at FY21; implying a growth of 3.9% (annualized to 16.3%) over the period. 2. EV as at FY21 is post allowing for final shareholder dividend of Rs 177 Cr for FY21. Note: Figures in Rs Cr. and may not add up due to rounding Investor Release 33 6 II MAX LIFE -.ow. Value of New Business and New Business Margins as at 30th June 2021 INSURANCE Description Q1 FY21 Q1 FY22 Y-o-Ygrowth APE 1 661 875 32% New Business Margin (NBM) 17.1% 19.7% +260 bps (postcost overrun) Value of New Business (VNB) 113 172 53% (postcost overrun) ▪ TheNewBusinessMargin(NBM)hasincreasedbycirca260bpsto19.7%forQ1FY22ascomparedto17.1%forQ1FY21. ▪ Theincreaseinmarginsisprimarilydrivenbyfavorablechangeinbusinessmix. } 1 Annual Premium Equivalent (APE) is calculated as 100% of regular premium + 10% of single premium. 2The VNB is accumulated from the point of sale to the end of the reporting period (i.e. 30thJune 2021), using the beginning of quarters’ risk free yield curve. Note: Figures in Rs Cr. and may not add up due to rounding Investor Release 34 II )MAX LIFE Value of New Business (VNB) and New Business Margin (NBM) Walk INSURANCE 23 172 37 113 Q1 FY21 Impact of higher APE Change in business mix Q1 FY22 NBM --> 17.1% - +2.6% 19.7% Note: Figures in Rs Cr. and may not add up due to rounding Investor Release 35 )MAX II MAX LIFE Sensitivity analysis as at 31st March 2021 EV Newbusiness Sensitivity Value (Rs Cr) % change VNB (Rs Cr) |NBM % change Base Case 12,010 - 1,249 | 25.2% - Lapse/Surrender -10% increase 11,886 (1%) 1,232 | 24.9% (1%) Lapse/Surrender -10% decrease 12,135 1% 1,263 | 25.5% 1% Mortality -10% increase 11,812 (2%) 1,197 | 24.1% (4%) Mortality -10% decrease 12,210 2% 1,300 | 26.2% 4% Expenses -10% increase 11,896 (1%) 1,165 | 23.5% (7%) Expenses -10% decrease 12,124 1% 1,332 | 26.9% 7% Risk free rates -1% increase 11,800 (2%) 1,309 | 26.4% 5% Risk free rates -1% reduction 12,175 1% 1,158 |23.4% (7%) Equity values -10% immediate rise 12,112 1% 1,249 | 25.2% Negligible Equity values -10% immediate fall 11,908 (1%) 1,249 | 25.2% Negligible Corporate tax Rate -2% increase 11,779 (2%) 1,210 | 24.4% (3%) Corporate tax Rate -2% decrease 12,242 2% 1,287 | 26.0% 3% Corporate tax rate increased to 25% 10,484 (13%) 938 | 18.9% (20%) 1. Reduction in interest rate curve leads to an increase in the value of assets which offsets the loss in the value of future profits. 2. Risk free rate sensitivities under new business allow for the change in the value of assets as at the date of valuation. Note: Figures in Rs Cr. and may not add up due to rounding Investor Release 36 II 6 MAX LIFE Delivering consistent growth in top line and renewals coupled with driving cost efficiencies INSURANCE Financial Performance FY20 FY21 Q1 FY’21 Q1 FY’22 , 19% 31% Individual APE 4,116 4,907 660 864 ) 15% *21% 10,600 12,192 1,852 2,244 Renewal Premium , Gross Premium 16,184 18% 19,018 2,751 *27% 3,484 ) Policyholder expense to GWP 14.5% 27 bps 14.2% 16.2% 115 bps 17.4% Ratio ) 20.8% 15 bps 20.7% 21.9% 147 bps 23.4% Policyholder Cost to GWP Ratio 6 bps , Expense to average AUM 20 bps 3.8% 3.6% 3.5% 3.6% (Policyholder) Note: Figures in RsCr. Investor Release 38 )MAX Healthy and consistent profitability creating value to all the stakeholders while maintaining LIFE solvency above required levels INSURANCE Financial Performance FY20 FY21 Q1 FY’21 Q1 FY’22 -15% -44% Profit(before Tax) 598 510 138 77 32% 28% AUM 68,471 90,407 73,239 93,697 21.6% 360 bps 25.2% 17.1% 260 bps 19.7% New Business Margin (Post Overrun) 19% 9,977 11,834 10,670 14% 12,290 MCEV (post dividend)^ 180 bps 240 bps Operating RoEV 20.3% 18.5% 15.9% 13.5% Solvency Ratio 11% 15% 220472%% \ 129462%% 212% 197% •==M••• Figures in Rs. Cr. ^Arrow represents growth in Operating RoEV Investor Release 39 6 II MAX LIFE -.ow. Performance update- Q1’FY22 INSURANCE Year Ended Key Business Drivers Unit Y-o-Y Growth Q1 FY’21 Q1 FY’22 a)Individual APE Rs. Crore 660 864 31% b)Gross written premium income Rs. Crore 2,751 3,484 27% First year premium 621 804 29% Renewal premium 1,852 2,244 21% Single premium 278 435 57% c)Shareholder Profit (Pre Tax) Rs. Crore 138 77 -44% d) Policy Holder Expense to Gross Premium % 16.2% 17.4% -115 bps f) Share Capital Rs. Crore 1,919 1,919 0% g) Individual Policies in force No. Lacs 44.20 45.95 4% h) Sum insured in force Rs. Crore 9,62,127 10,91,320 13% i)Grievance Ratio Per Tenthousand 34 31 -9% Investor Release 40 6 II MAX LIFE ....... Protection – Expansion in both case size and number of policies sold INSURANCE NoPs (INR’000) Case Size (INR’000) • Non PAR- Saving • PAR • Ind Protection • ULIP • Non PAR- Saving • PAR • Ind Protection • ULIP 646 42, 76 78 597 69 WY° 131 54 106 140 145 156 125 183 219 23 22 19 17 76 66 59 59 149 224 123 -1o96 111 21 25 106 107 96 97 147 61 40 84 22 28 13 24 FY20 FY21 Q1 FY'21 Q1 FY'22 FY20 FY21 Q1 FY'21 Q1 FY'22 • 1 Investor Release 41 6 II MAX LIFE -.ow. Definitions of the EV and VNB INSURANCE Market consistent methodology ▪ The EV and VNB have been determined using a market consistent methodology which differs from the traditional EV approach in respect of the way in which allowance for the risks in the business is made. ▪ For the market consistent methodology, an explicit allowance for the risks is made through the estimation of the Time Value of Financial Options and Guarantees (TVFOG), Cost of Residual Non-HedgeableRisks (CRNHR) and Frictional Cost (FC) whereas for the traditional EV approach, the allowance for the risk is made through the Risk Discount Rate (RDR). Components of EV The EV is calculated to be the sum of: ▪ Net Asset value (NAV) or Net Worth: Itrepresents the market value of assets attributable to shareholders and is calculated as the adjusted net worth of the company (being the net shareholders’ funds as shown in the audited financial statements adjusted to allow for all shareholder assets on a market value basis, net of tax). ▪ Value of In-force (VIF): This component represents the Present Value of Future expected post-tax Profits (PVFP) attributable to shareholders from the in-force business as at the valuation date, after deducting allowances for TVFOG, CRNHR and FC. Thus, VIF = PVFP –TVFOG –CRNHR –FC. Covered Business ▪ All business of Max Life is covered in the assessment except one-year renewable group term business and group fund business which are excluded due to their immateriality to the overall EV. Investor Release 42 6 II MAX LIFE -.ow. Components of VIF (1/2) INSURANCE Present Value of Future Profits (PVFP) ▪ Best estimate cash flows are projected and discounted at risk free investment returns. ▪ PVFP for all lines of business except participating business is derived as the present value of post-tax shareholder profits from the in-force covered business. ▪ PVFP for participating business is derived as the present value of shareholder transfers arising from the policyholder bonuses plusone-tenth of the present value of future transfers to the participating fund estate and one-tenth of the participating fund estate as at the valuation date. ▪ Appropriate allowance for mark-to-market adjustments to policyholders’ assets (net of tax) have been made in PVFP calculations to ensure that the market value of assets is taken into account. ▪ PVFP is also adjusted for the cost of derivative arrangements in place as at the valuation date. Cost of Residual Non-Hedgeable Risks (CRNHR) ▪ The CRNHR is calculated based on a cost of capital approach as the discounted value of an annual charge applied to the projectedrisk bearing capital for all non-hedgeablerisks. ▪ The risk bearing capital has been calculated based on 99.5 percentile stress events for all non-hedgeablerisks over a one-year time horizon. The cost of capital charge applied is 4% per annum. The approach adopted is approximate. ▪ The stress factors applied in calculating the projected risk capital in the future are based on the latest EU Solvency II directives recalibrated for Indian and Company specific conditions. Investor Release 43 6 II MAX LIFE -.ow. Components of VIF (2/2) INSURANCE Time Value Of Options and Guarantees (TVFOG) ▪ The TVFOG for participating business is calculated using stochasticsimulations which are based on 5,000 stochastic scenarios. ▪ Given that the shareholder payout is likely to be symmetrical for guaranteed non-participating products in both positive and negative scenarios, the TVFOG for these products is taken as zero. ▪ The cost associated with investment guarantees in the interest sensitive life non-participating products are allowed for in the PVFP calculation and hence an explicit TVFOG allowance has not been calculated. ▪ For all unit-linked products with investment guarantees, extra statutory reserves have been kept for which no release has been taken in PVFP and hence an explicit TVFOG allowance has not been calculated. Frictional Cost (FC) ▪ The FC is calculated as the discounted value of tax on investment returns and dealing costs on assets backing the required capital over the lifetime of the in-force business. Required capital has been set at 170% of the Required Solvency Margin (RSM) which is the internal target level of capital, whichis higher than the regulatory minimum requirement of 150%. ▪ While calculating the FC, the required capital for non-participating products is funded from the shareholders’ fund and is not lowered by other sources of funding available such as the excess capital in the participating business (i.e. participating fund estate). Investor Release 44 6 II MAX LIFE -.ow. Key Assumptions for the EV and VNB (1/2) INSURANCE Economic Assumptions ▪ The EV is calculated using risk free (government bond) spot rate yield curve taken from FBIL1as at 30thJune 2021. The VNB is calculated using the beginning of respective quarter’s risk free yield curve (i.e. 31stMarch 2021). ▪ No allowance has been made for liquidity premium because of lack of credible information on liquidity spreads in the Indian market. ▪ Samples from 30thJune 2021and 31st March 2021 spot rate (semi annualized) yield curves used are: Year 1 2 3 4 5 10 15 20 25 30 40 AM Jun-21 4.05% 4.65% 5.17% 5.60% 5.89% 6.49% 6.98% 7.43% 7.61% 7.35% 7.51% Mar-21 3.83% 4.22% 5.17% 5.58% 6.10% 6.46% 6.99% 7.09% 6.92% 6.93% 6.23% A Change 0.22% 0.43% 0.00% 0.01% -0.21% 0.03% -0.01% 0.34% 0.69% 0.43% 1.28% Demographic Assumptions The lapse and mortality assumptions are approved by Board committee and are set by product line and distribution channel on a best estimate basis, based on the following principles: ▪ Demographic assumptions are set to reflect the expected long term experience. ▪ Any one-off impacts expected, including those due to COVID19, are allowed through additional provisions/allowances. 1Financial Benchmark India Pvt. Ltd. Investor Release 45 6 II MAX LIFE -.ow. Key Assumptions for the EV and VNB (2/2) INSURANCE Expense and Inflation ▪ Maintenance expenses are based on the recent expense studies performed internally by the Company. The VIF is reduced for the value of any maintenance expense overrun in the future. The overrun represents the excess maintenance expenses expected to be incurred by the Company over the expense loadingsassumed in the calculation of PVFP. ▪ Future CSR related expenses have been taken to be 2% of post tax (risk adjusted) profits emerging each year. ▪ Expenses denominated in fixed rupee terms are inflated at 6.0% per annum. ▪ The commission rates are based on the actual commission payable, if any. Tax ▪ The Corporate tax rate is the effective tax rate, post allowing for exemption available on dividend income. Tax rate isnil for pension business. ▪ For participating business, the transfers to shareholders resulting from surplus distribution are not taxed as tax is assumed to be deducted before surplus is distributed to policyholders and shareholders. ▪ Goodsand Service tax is assumed to be 18%. ▪ The mark to market adjustments are also adjusted for tax. Investor Release 46