HDFC Standard LifeInsurance Company Limited

Welcome to

The Company

June 17, 2011

History of The Joint Venture

• Discussions commenced - January 1995• Joint venture agreement signed - October 1995• Joint venture agreement renewed - October 1998• Life Insurance project team established - January

2000 (Mumbai)• Company officially incorporated - 14th August 2000• First private sector Life Insurance company to be

granted a certificate of registration - 23 October 2000• Shareholding - HDFC 81.4 %

Vision Statement

“The most successful and admiredlife insurance company, which

means that we are the most trustedcompany, the easiest to deal with,offer the best value for money, andset the standards in the industry. Inshort, “The most obvious choice for

all”.

June 17, 2011

Our Mission

• We aim to be the top new life insurance company inthe market.

• This does not just mean being the largest or the mostproductive company in the market, rather it is acombination of several things like-

Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs ofdifferent customers

Use of technology to improve service standards

Increasing market share

June 17, 2011

Values that will be observed while we workwith HDFCSL:

Integrity

Innovation

Customer Centric

People Care

Team Work - One for all & all for one

Joy & Simplicity

Housing DevelopmentFinance Corporation Limited

June 17, 2011

Background

• Incorporated in 1977 as a public limited company

• To specialize in provision of housing finance to

individuals, co-operative societies & the corporate

sector

• First private sector retail housing finance company

• HDFC is listed on both BSE and NSE

• Market capitalisation (June 2002) - Rs. 79 billion (US $

1.6 bn)

June 17, 2011

HDFC’s Strengths - Home Loans

• Low average loan to value ratio

• Debt averse nature of borrowers

• Steady level of prepayments

• Growth in urban market / salaried class

• Quality of underwriting

• Geographically dispersed

June 17, 2011

Deposits• Major source of funding (45%)

• Increase in deposit base from:

– Rs. 14.58 billion in FY94 to Rs. 84.91 billion in FY02

• Net increase in FY02 of Rs. 12.41 billion

• Retail deposits constitute 82% of total deposits

• Over 52,000 Deposit Agents & over 1.3 million Depositors

• Average term at origination - 4 years

• ‘AAA’ rated by CRISIL & ICRA for eight consecutive years

• Gross mobilisation of retail deposits

– FY03 - Rs 91.22 bn ; FY02 - Rs. 32.21 bn; FY01 - Rs. 27.17 bn

June 17, 2011

Corporate Strengths

• Strong Brand

• Customer base of over 2 million

• Stable and experienced management

• High service standards

• High quality loan portfolio

• Provision for contingencies

• Constant technological upgradation of systems

• One of the best capital adequacy ratio

Integrated Financial Services

SECURITISATION

Future Activities

DISTRIBUTION HDFC CHUBBGENERAL INSURANCE

CO. LTD.

June 17, 2011

Awards & AccoladesIndia’s best managed company by Asiamoney magazine - 1995 and 1996Most competitive Indian company by Euromoney - 1997One of the 5 best Indian Boards by Business Today -1997Best presented accounts 1994-95 and 1996-97 (3rd place) - in the SAARC region by theSouth Asian Federation of Accounts in the financial sector categoryRated as one of the best companies in India for strategy & management and investorrelations by Asiamoney - 1998Excellence in service industry by the Indian Institute of Marketing Management & TopManagement Club (Pune) -1998Shield for the best presented accounts for banks and financial institutions - over 11 times (8years in a row)1999 IMC Ramakrishna Bajaj National Quality Award in the service categoryCII-EXIM Bank Comendation Certificate for commitment to Total Quality Management - 2000Asiamoney declared HDFC as the second best managed company in India - 2001Euromoney identified HDFC as one of Asia’s top 10 best managed companies in thefinance sector - 2001Rated as the Best Non-Banking Financial Company in Asia by Institutional InvestorResearch Group - 2002

The Standard Life InsuranceAssurance Company

June 17, 2011

Background

• Founded in 1825

• Mutual Life Insurance Company since 1925

• Largest mutual life insurance company in Europe

• Assets under management over Rs 5,81,000 crores (£

83.2 bn)

June 17, 2011

Head Office - Edinburgh, Scotland (UK)

PresenceUnited Kingdom: 31 branchesCanada 11 "Ireland 7 "Germany 1 "Austria 1 sales officeSpain 31 branchesHong Kong 1 representative officeChina 2 representative office

June 17, 2011

Financial Strength

• Total assets under management : Rs. 5,81,000Crores

• New premium income 2001 :Rs. 58,000 Crores

• AA2 rated by Standard & Poor’s and Moody’s

June 17, 2011

Unrivaled Reputation For Quality

Year Award• 2002 Company of the Year• 2001 Best Personal Pension Provider• 2000 Company of the Year• 1999 Company of the Decade• 1996-99 Company of the year• 1995 4 star service award• 1992-94 Overall best company• 1991 3 star service award• 1990 Best mortgage services

June 17, 2011

Experience In The Indian Market

• First market entry - 1847

• Innovative products & processes

• Last claim settled in 1997

June 17, 2011

Launched on 1st January 1998Savings balances of £ 4.4 billion

Mortgage lending above £ 6 billion

UK’s leading private medical insurers since 1988Fourth in the private medical insurers market

Best Individual PMI provider for the year

Assets under management £ 76 billion5 million retail and institutional clients

Global coverage of investment instruments and markets

June 17, 2011

What is Insurance ?

• It is a system by which the losses suffered by a few arespread over many, exposed to similar risks.

• Insurance is a protection against financial loss arising onthe happening of an unexpected event.

• It is essential that :– The calamity is either natural or unexpected– The insured person does not gain out of this

arrangement

June 17, 2011

Life Insurance

• Scope

– Pure - TermInsurance

– Savings –Endowment, MoneyBack Policies

– Investment - SinglePremium Policies

– Income / Pension -Annuities

– Market / Unit Linked

• Gamut– Individual– Group– Salary Savings

June 17, 2011

Benefits of Insurance

Safeguards oneself and one's family for futurerequirements.Peace of mind-in case of financial loss.Encourage saving.Tax rebate.Protection from the claim made by creditors.Security against personal loan, housing loan or othertypes of loan.Provide a protection cover to industries, agriculture,women and child.

June 17, 2011

Life Insurance Milestones• 1818 - Oriental Insurance Company set up in Calcutta• 1912 - The Indian Life Assurance Companies Act enacted

- first statute• 1928 - The Indian Insurance Companies Act enacted to e

businesses.• 1938 - Passing of the Insurance Act

• 1956 - Nationalisation of life insurance companies and

• 1956-1999 - Monopoly of LIC for nearly 44 years

• 1999 - Privatisation initiated

June 17, 2011

Privatisation - Objectives

• Broad– Increased coverage of the population

• Specific– Customer has a wider choice & range of products– Service standards to customer

• Economic– Savings mobilisation

June 17, 2011

Today

• 21 Life insurance business companies

• Multiple players, products

• Increased awareness

• Flexible products

June 17, 2011

Indian Investor Preferences

• Insurance is a popular avenue in rural & urban areas

Source: SEBI-NCAER Survey of Indian Investors, June 2000

June 17, 2011

Only ONE out of FIVE insurable population in Indiahave insurance coverageIn terms of insurance premium per capita andpremium per GDP, India ranks as one of the lowest inthe world.Life Insurance premium constitutes only 9% ofdomestic savings.By 2010, hundred million elderly look to planning forold age pension and annuities.More than 325 million labor forces have no socialsecurity.

Talking about potential ...

CAREER

HDFC SLIC

Career Growth-HDFC LIFE

• ABHIMAANFinancial Consultant to Sales Manager

Goal sheet 3lac

On completion of Goal sheet FC becomeseligible for assessment for Sales Manager

June 17, 2011

Career Growth -HDFCLIFE

• Sales Manager to Business DevelopmentManager (BDM)

Goal Sheet 12 lac

• BDM to Assistant Sales ManagerGoal Sheet 19 Lac (27 lac 150% of goalsheet)

June 17, 2011

Career Growth – HDFC LIFE

• ASM to Branch Manager

Goal Sheet 27 lac

Becomes eligible for assessment for BranchManager

June 17, 2011

Career Growth-HDFC LIFE

• Branch Manager to Territory Manager

• Territory Manager to Regional Manager

• Regional Manager to Zonal Manager

June 17, 2011

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CHANNELDEVELOPMENT

Project Trainee /Management Trainee

ProgrammeObjective

June 17, 2011

The Process

• Channel Development to select Project / Management Traineesfrom Business schools or referred by SM’s

• CD team then to give basic training/handholding to the traineeson recruitment and give each trainee a weekly target

• The trainees will pitch an opportunity for a ‘Business Partner’

– The TG• Age – 30+, men / women, at least 12th pass, salaried,

self employed, housewives, professionals

– The Pitch• Work for just 5 hours a week and earn more than

Rs. 20,000/- per month• Zero Investment• World Class Training• Part time / full time option

June 17, 2011

The Approach• Trainees to first leverage their natural market –

immediate contacts: friends/relatives/neighbors

– Each trainee to list down names of at least 50 people ormore, who they can approach directly

– Each trainee to service their respective list

– CD team to support the Project trainees by giving them leadsso generated from on ground contact program activities.

CD Team to also support them with Sales tools such as presentation,Audio visual etc made for different TG to help them to achievetheir target

June 17, 2011

The Control

• SM/RM/ARMs to monitor daily progress of Trainees

– Weekly status report to be submitted by SM to the CD team– Trainees to submit filled-up FC application forms

• FC application forms to be validated by SM/RM/ARMs

• Recruitment Log-in Day– Trainees to submit validated application forms every Friday– Candidate ids of FC’s to be captured

June 17, 2011

Incentives

Rules• All Summer trainees will work for atleast 60 days• All Summer Trainees to be Finalised by CD Team of all

Summer Trainee recruited by CD or Sales team• They will compulsory have to undergo one day training (To

be conducted by CD Team in presence of the respectiveSM's)

• All Incentive to be paid only after proper documentationreceived of the FC so recruited and completed 50 hrs IRDATraining.

• Certification of Summer Trainees to be done by CD-Teamonly after the project period

• Summer trainees will not be paid any allowances.

June 17, 2011

PT Payout Structure for the period April 2011 to Mar’12A> Licensing Payout Slabs

10001-5Bronze13006-15Silver150016-25Gold

Tier / Club

Licensing Nos (From Recruitment done duringapplicable period )Cumulative count for Financial

Year Apr2011 to Mar-2012

Payout perlicense (Rs)

Gold Plus 26-35 1750Platium 36-45 2250Platium

Plus46& Above 3000

SUMMER TRAINEES

June 17, 2011