NTUC Income AR 2018

1 The Applied Innovation Institute Singapore Insurance Innovation and Digital Benchmark, produced by the Applied Innovation Institute (Aii), in partnership with Quest Ventures. 2 Social Impact Tracker 2018 by Nielsen, commissioned by Income. SHAREHOLDERS Taking into account the positive financial results for the year, the Directors have proposed a dividend of 6.0% for the financial year ended 31 December 2018. OUR FINANCIAL STRENGTH AND CORPORATE GOVERNANCE Our financial strength is reflected by our strong credit ratings of AA- by Standard & Poor’s, which we have been holding since 2009. It underscores our strong competitive position and diversified business mix. In 2018, Income maintained a healthy capital adequacy ratio of 273%. We embrace and uphold the highest standards of corporate governance, transparency and disclosure, while we continue to expand and further deepen our capabilities as a high-performing organisation that meets the diverse and evolving insurance needs of our customers. ENHANCING OUR CAPABILITIES & REACH TO SERVE OUR CUSTOMERS BETTER Income has made good progress to become a digital insurer. We were the first insurer in Singapore to offer Droplet, an insurance that protects customers against surge pricing due to rain when they book a ride on ride- hailing platforms. Income also ranked No.1 in an inaugural industry benchmark 1 in 2018, which compared the innovation and digitalisation efforts of 25 insurers in Singapore. As we reimagine insurance and transform the way customers regard and engage with insurance, we are also growing and investing in our distribution channel so that we meaningfully cater to customers’ preference for choice and flexibility to engage with insurance that is based on their lifestyles and needs. In this regard, we are not only increasing our advisors footprint but also empowering them with digital tools and platforms so that our advisory capabilities leverage and complement technology of today. This ensures that our financial advisors move up the value curve as they support customers in their financial goals. COMMITTED TO DELIVER POSITIVE SOCIAL IMPACT IN OUR COMMUNITY Each year, we are focused on not only doing well but also doing good via our product offerings, services, and giving back to the communities we serve through our employees, policyholders and donors. Here are a few highlights as we continue to rank first 2 amongst insurers as a socially responsible company. Prolonged Medical Leave (PML) Insurance for Self-employed Person Given the thriving gig economy, Income is increasingly seeing a growing protection gap amongst self- employed persons and recognises them as a group of people who are currently underserved by insurance in Singapore. Launched in September 2018, Income’s PML insurance plans are intended tomitigate loss of income, particularly during long periods of illness, injury or hospitalisation for self-employed persons. More significantly, the plans offer pay-out on top of other insurance plans and apply the same premium rate regardless of occupation types. Orange Health rewards policyholders who keep healthy and active Believing in a holistic approach to health, Orange Health is a health and fitness programme that rewards those who are insured by IncomeShield when they clock sufficient sleep, in addition to pursuing a healthy diet and active lifestyle. To foster healthier food choices and physical activities, Orange Health makes it easy and convenient for users to make healthier decisions with its easy-to-use mobile application and its wide range of partners. By rewarding people who make deliberate choices that positively impact their health, we hope to help Singaporeans establish good lifelong healthy habits. 10 HAND IN HAND