Financial Highlights

ICICI Lombard General Insurance Company

(Rupees. in millions )

Particulars for the period ended March 31, 2003 2003 2002

Gross Written Premium 2152.2 281.3

Earned Premium 272.3 14.2

Total Income 46.13 78.04

Expenditure 4.275 33.23

Net Profit/ (Loss) 32.98 (84.82)

Share Capital 1095.98 1094.42

Year of review 2002-2003 : The profit for the year ended March 31, 2003 was Rs 32.98 million in its first full year of operations. However, in view of the accumulated losses of Rs 59.8 million, the directors did not recommend any dividend for 2002-03. ICICI Lombard has focused on building a profitable portfolio. The company’s annualized gross written premium grew more than eight fold over the previous year. The fire insurance business, which has low loss ratios, comprises 61% of the company's portfolio.

ICICI Lombard has entered in re-insurance arrangements with leading re-insurers including Munich Re, Swiss Re and General Insurance Corporation.

ICICI Lombard plans to forge alliances with government agencies, NGO's and corporates, leverage customer databases and use technology to take a wide range of products to the retail segment.

Operational review

The company has focused on building a profitable portfolio. The fire insurance business, which has low loss ratios comprises 61% of the company’s portfolio as against an industry average of 24%. As a measure of prudent risk management, the company has entered into a reinsurance arrangements with leading re-insurers including Munich Re, Swiss Re and General Insurance Corporation. The Company’s strong reinsurance programme is a key strength and a source of comfort to customers. The company views its re-insurers as providers of contingent capital and a vital constituency to be served along with its customers and shareholders. It has a customer-centric approach in all its operations. The key customer service parameters viz. promptness in issuance of documents and settlement of claims, continue to be priority areas for the company. Keeping in mind the growing sophistication of the Indian consumer, the company is focusing on technology-driven solutions and over-the-counter (OTC) products. It also offers online solutions in the area of marine, motor and travel insurance and OTC products for personal accident, home and merchants cover.

Strong Parentage

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI Bank Limited – India’s second largest bank and Fairfax Financial Holdings Limited - a US$ 26 Billion diversified financial services corporate engaged in general insurance, reinsurance, insurance claims management and investment management. Lombard Canada Ltd., a group company of Fairfax Financial Holdings Limited, is one of Canada’s oldest property and casualty insurers.

As an alliance, ICICI Lombard combines the forte of these two most trusted names in the financial sector. It leverages ICICI Bank's strong brand equity, extensive distribution network and sound technological infrastructure to serve customer needs. This joins forces with Lombard's domain knowledge, product innovation and business processes based on international best practices in the insurance business. To the Indian consumer this means the security of strong parentage with access to a range of customized and innovative insurance solutions that is supported by internationally benchmarked service levels.

Commencing operations in September 2001, after the general insurance sector was thrown open to private sector participation, ICICI Lombard was one of the first private sector general insurance players to achieve break-even levels in the first full year of its operations. For the year gone by (2002-03), ICICI Lombard garnered premiums worth Rs. 2.15 billion and its net profits grew to Rs. 33 million. ICICI Lombard has also doubled its equity capital from Rs. 1.1 billion to Rs. 2.2 billion.

Comprehensive Product Range

ICICI Lombard has a major presence in the following insurance segments: • Personal solutions – Motor, Home, Personal Accident cover • Business solutions – Fire, Inland transit, Engineering, Performance Guarantee, Merchant

cover, Marine Hull, Aviation Hull, etc. • Travel & Health solutions • Project solutions – Contractor’s / Industrial / Erection All Risk, etc. • Liability solutions (Directors & Officer’s Liability, Errors & Omissions, Product Liability, Public

Liability, Professional Indemnity) • Exports solutions (Export Import, Export Credit) • Rural solutions (Tractor, Weather Index, Janata Personal Accident...)

ICICI Lombard has already introduced a slew of products and has emerged as a major player in the corporate and retail segments driven by a well-balanced portfolio. The Company has some of the largest industrial houses and companies representing diverse industries as its customers.

ICICI Lombard has also made forays into specialized products, those that require complex product development and strong underwriting skills. One area is the comprehensive weather index insurance that protects the insured against the vagaries of nature. This product is based on scientific hard data making the authentication and payment of claims quick and efficient. This was developed in association with the World Bank and ICICI Bank. Other areas requiring complex product structuring include Representations and Warranties, Sureties and Credit Guarantee Insurance.

IT Enabled Services

ICICI Lombard is committed to providing the customer total transparency and control over his insurance portfolio. The effective use of technology platforms has enabled customers to view all their insurance transactions through the web on a real time basis. A customer can also transact business with the company through its corporate website on several products such as home, travel, fire, health and marine. In addition, the website offers a unique free "Ask the Expert" service which can be availed by anyone visiting the site. An unbiased opinion on any insurance policy from any company is offered.

ICICI Lombard is one of the few insurance companies that links all the insurance policies taken by a customer for the company or a group of companies to a single cash deposit. This initiative has reduced the need for deposits maintained with the insurance company, thereby assisting the corporates in working capital management.

Globally benchmarked Service Standards

ICICI Lombard offers its customers benchmarked service standards. A customer has access to offices in 55 cities, over 300 relationship managers and 1000 insurance advisors across the country. The Company has an interactive website and a state-of-the art, 24 X 7 call center to enable customers to stay in touch. When a claim is reported, a surveyor is onsite within 24 hours. An interim payment, if needed, is made within 7 days of claim and the final payment within 7 days of completion of documentation. Making sure that life and business goes on uninterrupted.

The Management Team

Mr. Sandeep Bakhshi, Managing Director and CEO, ICICI Lombard, is responsible for the non-life insurance business of ICICI Bank Limited. He joined ICICI in the 1986, as an officer in the Operations Department in the Northern Zonal Office, in Delhi. His job responsibilities included business development, project appraisals, project monitoring and business restructuring. He was appointed Senior Vice President in 1996 and apart from project finance was also given the charge of the Risk Management for the Northern Zonal Office. He subsequently looked after the corporate clients for the Northern and Eastern regions of ICICI before joining ICICI Lombard in 2002. Mr. Bakhshi is a Mechanical Engineer from Punjab Engineering College, Chandigarh and holds a Management degree from XLRI, Jamshedpur.

Mr. R. Rangarajan, Technical Director, ICICI Lombard is responsible for advising on various matters of general insurance in the company, especially in the areas of product design, customer service, regulatory aspects and processes and settlement of claims. He joined ICICI in 1999 as a consultant for general insurance business and was largely involved in the licensing process for ICICI Lombard. Prior to joining ICICI, he was working with New India Insurance Company as General Manager. He has over 40 years of work experience in general insurance in various capacities. He holds a Masters degree in Statistics and is fellow of Association of Federation of Insurance Institute, India.

Mr. K. Bharathan, Regional Director, a chartered accountant, joined ICICI Lombard in 2002 and is responsible for business development for southern region. He joined ICICI in 1981 and has varied experience in Project financing, monitoring as well as rehabilitation of sick companies in southern region. Prior to joining ICICI, he was working with Commercial Bank as Senior Manager. He also holds a commerce degree from Madras University.

Mr. Alok Agarwal, Head – Corporate Relations, joined ICICI Lombard in 2002 and is responsible for business development for east, west and north regions. He joined ICICI in 1993 and was responsible for business development, project appraisals and project monitoring. Prior to joining ICICI, he worked with Reliance Industries as process engineer. He is a Chemical Engineer from Jadavpur University and holds a Management degree from IIM, Calcutta.

Mr. Dilip Jashnani, Head – SME, joined ICICI Lombard in January 2001 and is responsible for business development for central region. Prior to joining ICICI Lombard, he has worked with National Insurance, having varied experience in underwriting, claims and headed the largest divisional office of National. He holds a degree in Science and Marketing Management from Bombay University and is also an Associate of Insurance Institute of India.

Mr. Ritesh Kumar, Head – Risk & Product Development, joined ICICI Lombard in 2002, and is heading Risk, Reinsurance and Product development functions. He joined ICICI in 1992 and was responsible for business development, project appraisals and project monitoring. He has also been involved in the Structured Product Group of ICICI which did some of the first securitisation deals in India. He was promoted to Deputy General Manager in 2001. He is a Commerce graduate from Shriram College of Commerce, Delhi and did his business management from Faculty of Management Studies, Delhi.

Mr. Kartik Jain, Head – Marketing & Alliances, joined ICICI Lombard in 2002 as Vice President and is currently heading Marketing and Retail functions. Prior to joining ICICI Lombard, he has worked with KPMG Strategy Consulting in London and Mumbai and with Cadbury in Sales and Marketing. He is a Mechanical Engineer from IIT, Mumbai and completed his PGDM from IIM, Calcutta.

Mr. Rakesh Jain, Head – Finance, Operations & Customer Service, joined ICICI Lombard in 2001 and heads Finance & Accounts, and Customer Service functions. He joined the Risk management department of ICICI in 1998, when ICICI took over ITC Classic. He is a Commerce graduate from Xaviers’ College, Calcutta and holds ICWA and CA degrees.

Mr. Sudhir Salian, Head – Retail, a chartered accountant, heads the strategy function for ICICI Lombard and is responsible for leading the direct technology initiatives for the company. The technology function also reports into this group. He joined ICICI as a Vice President in the Retail Risk

Management function in 1999. Prior to this, he has worked for Standard Chartered Bank in various capacities in the retail banking business.

Mr. Zubin Mody, Head – Human Resources, Vice President, is heading the HR function in ICICI Lombard. He joined ICICI in the 1999 as AVP – HR in Mumbai, and was responsible for Performance Management, Compensation and Organization Development. He was promoted to Senior VP in 2000. He graduated from Bombay University with Physics (honours) and did his management from XLRI, Jamshedpur.