Life Insurance Corp. Of India · NSE:LICI
Life Insurance Corp. Of India — Life Insurance Corporation of India — Investor Presentation (February 2023)
87 slides from Life Insurance Corp. Of India's investor presentation, Feb 10, 2023
Slide 1: Intimation of Investor/Analyst Meet
Ref. No.: LIC/SE/2022-23/149 Date: February 10th, 2023 To, The Manager The Manager Listing Department Listing Department BSE Limited The National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Tower Exchange Plaza, 5th Floor, Plot C/1, Dalal Street G Block, Bandra Kurla Complex Mumbai- 400001 Mumba
Slide 2: Pawan by Agrawal Agrawal Date:
We request you to kindly take the above information on record. Yours faithfully, For Life Insurance Corporation of India Digitally signed Pawan byAgrawal Pawan Agrawal Date: 2023.02.10 12:24:10 +05'30' (Pawan Agrawal) Company Secretary & Compliance Officer
Slide 3: Corporate Presentation
Corporate Presentation February 10th, 2023
Slide 4: Agenda
Agenda I - INTRODUCTION II - FINANCIAL AND BUSINESS HIGHLIGHTS III - PRODUCT, CUSTOMER FRANCHISE AND DISTRIBUTION REACH IV - ACTUARIAL METRICS V - TECHNOLOGICAL AND DIGITAL INITIATIVES VI - ESG INITIATIVES VII - WAY FORWARD APPENDIX (a) INDIAN INDUSTRY LANDSCAPE (b) FINANCIALS
Slide 5: Introduction
I INTRODUCTION
Slide 6: Pride of India
: : Pride of India Largest life insurer in India1,2 Brand is the 3rd Customer centric strongest global Strong distribution insurance brand3, with network in India ~27.80 crore policies Operating efficiencies being serviced4 and driven by technology ~13.35 lakh agents5 Established track record of pro
Slide 7: Deeply entrenched into Bharat
Deeply entrenched into Bharat Extensive domestic distribution network… Assam Jammu & Arunachal Breakup of our Business State wise² Kashmir; Ladakh Pradesh Meghalaya Punjab Himachal Pradesh Chandigarh Uttarakhand Tripura Haryana Delhi Sikkim Uttar Pradesh Rajasthan Bihar Madhya Pradesh Jharkhand Guja
Slide 8: #1 life insurer in India, 5th largest in the world by life insurance GWP
#1 life insurer in India, 5th largest in the world by life insurance GWP Sustained market leadership Scale Customer & distribution ~2.17 crore INR 2,05,758 16.37 FY22 Individual policies ~13.35 lakh Policies sold per agent for sold Crore5 Agents (Sep-22) FY22 FY22 NBP Significantly higher than 5th 1
Slide 9: Differentiated business model with deep competitive moats
Differentiated business model with deep competitive moats Cross cyclical Unrivalled Dedicated focus Strong investment Strong risk and Unmatched scale Trusted brand distribution on technology & financial track controls comprehensive solutions record ₹ Fifth largest life Trusted brand Cross-cyclical P
Slide 10: Highly experienced management team, distinguished Board and strong corporate governance
Highly experienced management team, distinguished Board and strong corporate governance framework Shri Mangalam Shri Suchindra Shri Siddhartha Ramasubramanian Misra Mohanty Kumar Government Nominee Managing Director Whole-time Chairperson Director Smt. Ipe Mini Shri Bishnu Dr. Ranjan Shri Vinod Kuma
Slide 11: LIC – Group structure
LIC – Group structure Foreign branches1 Subsidiaries Associates Country Entity Country Entity Stake held (%) Country Entity Stake held (%) 100.00% 45.24%3 Fiji Branch 100.00% 5.38%3 Mauritius 99.66%2 Branch 49.24%4 100.00% 29.84%4 United Kingdom 80.00% Branch 45.00% 55.00% LIC Mutual Fund X% - Share
Slide 12: Awards won by LIC during 2022-23
Awards won by LIC during 2022-23 BFSI National Award for BFSI National Award for Leadership & Excellence - Best Life Insurance Company Leadership & Excellence - Best Customer Service Excellence Award in Claim Settlement Persistency Award BFSI National Award for BFSI National Award for Leadership & E
Slide 13: Financial and Business Highlights
II FINANCIAL AND BUSINESS HIGHLIGHTS
Slide 14: Highlights of Q3 FY23
Highlights of Q3 FY23 Key Performance Drivers INR in Crore Financial Performance (INR in crore) 60000 Particulars Sept 30, 2022 Dec 31 2022 Growth 50,390 50000 Total Premium Income 1,32,104 1,11,788 (15.38%) 42,170 40000 37,545 Total Renewal Premium 56,156 60,195 7.19% 30000 25,228 Expenses of Manag
Slide 15: Business performance parameters FY 2021-22
Business performance parameters FY 2021-22 INR Crore FY 22 INR 2,05,758 Cr FY 22 INR 63.25 % Total New Business Market Share in -2.93% Premium +7.42% FY 21 INR 1,91,542 Cr Premium¹ FY 21 INR 66.18 % (Absolute) FY 22 INR 54,960 Cr FY 22 INR 1,50,798 Cr Individual New Business Group Business Premium -
Slide 16: Business performance parameters
Business performance parameters INR in Crore 9M -FY 23 INR 3,42,244 Cr 9M -FY 23 65.38% Market Share in +3.98% Total Premium Income +20.65% 9M -FY 22 INR 2,83,673 Cr Premium¹ 9M -FY 22 61.40% (Absolute) 9M -FY 23 INR 38,828 Cr 9M -FY 23 INR 1,41,815 Cr Individual New Business Total Group Business Pr
Slide 17: Business performance parameters
Business performance parameters INR in Crore 9M-FY 23 INR 23,255 Cr 9M-FY 23 INR 4,27,211 Cr Weighted Received Total New Business Sum + 11.72% Assured +9.44% Premium 9M-FY 22 INR 20,816 Cr 9M-FY 22 INR 3,90,346 Cr 9M-FY 23 INR 481.98 Cr 9M-FY 23 INR 37,545 Cr Total COVID 19 Claims +48.82% Paid -65.5
Slide 18: Financial performance parameters
Financial performance parameters INR in Crore 9M-FY 23 Rs. 22,970 Cr ₂ 9M-FY 23 INR 45,61,347 Cr Profit After Tax +1273.80% Total Assets +10.24 % 9M-FY 22 Rs. 1,672 Cr 9M-FY 22 INR 41,37,627 Cr 9M-FY 23 INR 5,478 Cr 9M-FY 23 1.85 Value of New Business Solvency +0.08 (Net) H1-FY 23 INR 3,677 Cr +48.9
Slide 19: Performance ratios
Performance ratios VNB Margin Net 9M-FY 23 11.0% 9M-FY 23 92.76% Conservation Ratio (Individual Par) ¹ H1-FY 23 10.6% 9M-FY 22 94.50% VNB Margin Net 9M-FY 23 63.6% 9M-FY 23 0.00% Total Net NPA Ratio (Individual Non Par) ¹ H1-FY 23 68.7% 9M-FY 22 0.04% VNB Margin Net 9M-FY 23 12.3% 9M-FY 23 5.02% Tot
Slide 20: Break up of business PAR and Non PAR – 9MFY23
Break up of business PAR and Non PAR – 9MFY23 Breakup of NB premium Particulars Non Par NBP share Term 0.39 % Health Insurance 0.14% 66.39% Non- Par Annuity/Pension 23.85% 33.61% Par Other Non Par 2.25% ULIP 6.98% Total 33.61% Share to total NB policies Particulars Non Par NB share (No of policy) Te
Slide 21: Group business segment
Group business segment INR in Crore 78 MARKET SHARE (PREMIUM) NEW BUSINESS PREMIUM 150000 77.5 145000 77 140000 76.5 135000 77.69 76 130000 1,43,939 125000 76.16 75.5 1,27,768 120000 75 FY22 FY21 115000 FY22 FY21 Growth – 12.66% YoY basis in Group New Business Premium Source: Corporation data 19
Slide 22: Group business segment
Group business segment INR in Crore 80.00% Market share (premium) Business premium 79.00% 160000 78.00% 140000 77.00% 120000 76.00% 100000 75.00% 78.65% 80000 1,41,815 74.00% 60000 73.00% 94,452 40000 73.78% 72.00% 20000 71.00% 9MFY23 9MFY22 0 9MFY23 9MFY22 Growth – 50.15% YoY basis in Group busines
Slide 23: Share of women in policies issued
Share of women in policies issued Rising Share of women in policies sold¹ In 16 States/UTs, the share in number of policies bought by women to the total policies sold was higher than the all-India average of 34.7%² 50% 45% 44% 45% 42% 42% 41% 40% 35% 30% 30% 30% 26% 26% 27% 25% 20% 15% 10% 5% Out of
Slide 24: LIC marketing distribution - geared to recover/enhance market share
LIC marketing distribution - geared to recover/enhance market share LIC BUSINESS PERCENTAGE IN INDUSTRY BY PREMIUM LIC BUSINESS PERCENTAGE IN 80 INDUSTRY BY PREMIUM 73 Apr-21 80 75 71 70 69 68 May-21 75 64 69 68 68 68 68 65 62 70 65 65 65 65 59 60 59 59 Jun-21 65 60 Apr-22 55 Jul-21 60 50 55 May-22
Slide 25: LIC marketing distribution - geared to recover/enhance market share
LIC marketing distribution - geared to recover/enhance market share LIC BUSINESS PERCENTAGE IN INDUSTRY BY POLICIES LIC BUSINESS PERCENTAGE IN 81 80 77 75 INDUSTRY BY POLICIES 75 73 74 74 75 72 72 80 69 70 66 Apr-21 64 65 May-21 60 Jun-21 Apr-22 55 75 50 Jul-21 May-22 45 Aug-21 72 72 Jun-22 71 71 71
Slide 26: Progress on various initiatives – 9M FY23
Progress on various initiatives – 9M FY23 Modification of Focus on Products for Increase in Non Banca and New Products Par Business on Launch increasing Alternate Digital Initiatives persistency APE basis Channel Individual business ANANDA Individual business 800000 800000 ANANDA share of Non Par sh
Slide 27: Product, Customer Franchise and Distribution Reach
III PRODUCT, CUSTOMER FRANCHISE AND DISTRIBUTION REACH
Slide 28: Our Products Designed to Suit Customer Life Cycle
Our Products Designed to Suit Customer Life Cycle Participating Products Non-participating Products Product list is indicative and not exhaustive. 26
Slide 29: Enhancing focus on building Omni-channel distribution network
Enhancing focus on building Omni-channel distribution network Snapshot of LIC’s vast distribution capabilities 13.22¹ lacs Agents exclusive to LIC 78 Bancassurance partnerships 157² Corporate Agents 286 Brokers 110 Insurance Marketing Firms 40,356³ Premium points + 2697 MICRO Insurance Premium Point
Slide 30: Enhancing focus on building Omni-channel distribution network
Enhancing focus on building Omni-channel distribution network Snapshot of LIC’s vast distribution capabilities Distribution mix by individual NBP (%) Individual NBP sourced in India via the banca 0.35% and alternate channels (INR Crore) 0.52% 0.41% 0.13% 1,355 2.56% 3.50% +48% 918 96.52% 96.02% 9M 2
Slide 31: Feet on street – our core distribution approach
Feet on street – our core distribution approach Organisational Structure Agents Training Infrastructure CO 1.44% Employees 8 Zonal Training Centers Office 8 Zonal 3.26% Employees Office 35 Sales Training Centers 113 Divisional Office 14.21% Employees 113 Divisional Training Centers 2048 Branch Offic
Slide 32: Agents’ training
Agents’ training Training in Sales Training 20,527 Agents fulfilling the Training in External Centres and Zonal MDRT criteria Training Institutes – 4,138 Training Centres – 2,12,871 Total 2,95,700 agents trained in 80% 77.35% Agents recruited within 9MFY23 the 18-40 years age group Imparted training
Slide 33: Robust agency force
Robust agency force 1600000 LARGEST AGENCY FORCE 14.00% GROWTH IN NO. OF AGENTS {2019 to 2022} Growth {9MFY23 over 9MFY22} 1322586 12.48% 1400000 1353808 1326432 1206401 12.00% 11.29% 1208826 1200000 1116175 1069640 1101268 9.91% 4.58% 10.00% 1000000 8.00% 800000 -0.52% 600000 6.00% 10.81% 400000 4.
Slide 34: Exclusive agency network well trained leading to highest productivity
Exclusive agency network well trained leading to highest productivity Loyal agency network with a mix of youth and experienced professionals Mix of agents by age group Mix of agents by tenure Above 60 yrs 70% More than 5 18-30 yrs Years 9% 16% 43% 60% 50-60 yrs 20% 30-35 yrs 50% 12% Up to 5 Years, 4
Slide 35: Differentiated business model with deep competitive moats
Differentiated business model with deep competitive moats Geographic distribution of individual agents (%) 53% 52% 52% 51% 50% 49% 48% 48% 47% 46% 45% Metropolitan, Urban Rural & Semi-urban PAN India presence of Agents which shows our feet on street 33 Source Corporation data as on 31.12.2022
Slide 36: Customer Satisfaction – Our Focus
Customer Satisfaction – Our Focus Surrender Ratio1 2.4 2.36 2.36 2.35 2.32 2.3 2.25 2.21 2.2 2.15 2.1 2018-19 2019-20 2020-21 2021-22 Source: Corporation data. 1Surrender Ratio is Total Surrender amount to Total Investments as per summary of Financial Statements. 34
Slide 37: Customer care – at our core philosophy
Customer care – at our core philosophy ❖ Settled total death claims of Rs. 17,350 crore in 9MFY23 as against Rs. 29,271 crore in 9MFY22. ❖ Claim settlement ratio (Death) in 9MFY23 is 97.43% by number as against 96.10% in 9MFY22. ❖ Every 1.18 second, 1 claim was settled by the LIC of India during FY2
Slide 38: Actuarial Metrics
IV ACTUARIAL METRICS
Slide 39: Indian Embedded Value (IEV)
Indian Embedded Value (IEV) INR in Crore 545000 5,44,291 544000 543000 542000 5,41,492 541000 540000 5,39,686 539000 538000 537000 30th Sept. 21 31st March 22 30th Sept. 22 37 Source: Milliman Report and Corporation data, IEV as on 30th September 2021 includes bifurcation impact of INR 3,74,172 cror
Slide 40: INR in crore Source: Milliman Report
INR in crore Source: Milliman Report 38
Slide 41: Build up of Embedded Value
Build up of Embedded Value INR in Crore Components March 2021 March 2022 A. Free surplus (FS) 6,361 10,527 B. Required Capital (RC) - - C. Adjusted Net Worth (ANW) (C=A+B) 6,361 10,527 D. Present value of future profits (PVFP) 1,04,772 5,47,724 E. Time Value of financial options and (1,596) (2,076)
Slide 42: Analysis of movement in IEV
Analysis of movement in IEV Components FY 2022 (INR in Crore) Opening IEV 95,605 Bifurcation Impact 3,74,172 Expected return on Existing Business At Reference Rate 4,742 At Expected ‘real – world’ return in excess of Reference rate 17,977 Operating assumptions change (5,243) VoNB added during the pe
Slide 43: Sensitivity analysis
Sensitivity analysis Change in Indian Change in New Business Sensitivity – Scenarios Embedded Value Margin (Percent) For the Year End 3/2022 3/2022 Base results (INR in Crore) 5,41,492 15.1% Reference An increase of 100 bps in the reference rates (0.4%) 1.8% rates A decrease of 100 bps in the refere
Slide 44: Annualised Premium Equivalent (APE) Product Mix
Annualised Premium Equivalent (APE) APE Product Mix INR in Crore Segment FY 2021 FY 2022 Q1FY23 H1FY23 9MFY23 Individual Par 29,134 33,040 5,950 13,328 21,206 Individual Non 2,389 2,532 500 1,315 2,213 Par Group 10,647 14,818 3,819 10,585 14,126 Total APE 42,170 50,390 10,270 25,228 37,545 Source Co
Slide 45: Break up of PAR and Non PAR business (APE) – FY22 to 9MFY23
Break up of PAR and Non PAR business(APE) – FY22 to 9MFY23 Breakup of APE FY22 Breakup of APE Q1FY23 7.12% Non- Par Non- Par 92.24% 7.76% Par 92.88% Par Breakup of APE H1FY23 Breakup of APE 9MFY23 8.98% Non- Par Non- Par 91.02% Par 9.45% 90.55% Par 43 Source : Corporation Data
Slide 46: Value of New Business (VNB)
Value of New Business (VNB) - before TVFOG, FC and CRNHR² INR in Crore LIC of India 9MFY23 7,187 FY 22 9,920 FY 21 6,440 Individual Business Group Business 9MFY23 4,683 9MFY23 2,504 FY 22 7,101 FY 22 2,819 FY 21 5,215 FY 21 1,225 Non Par Businessˡ Par Business 9MFY23 1,627 9MFY23 3,056 FY 22 2,624 F
Slide 47: Value of New Business (VNB) margin
Value of New Business (VNB) margin LIC of India 9MFY23 (Net) 14.6% FY 22 15.1% (Net) FY 21 9.9% (Net) Individual Business Group Business 9MFY23 (Gross) 20.0% 9MFY23 (Gross) 17.7% FY 22 19.96% (Gross) FY 22 19.02% (Gross) FY 21 16.54% (Gross) FY 21 11.51% (Gross) Non Par Businessˡ Par Business 9MFY23
Slide 48: VNB Walk March 2022 to December 2022
VNB Walk March 2022 to December 2022 Source: Corporation Data 46
Slide 49: Persistency ratios (premium)
80.00% 90.00% 78.78% 70.00% 67.46% 80.00% 75.59% 63.45% 73.47% 60.70% 70.02% 66.93% 55.05% 70.00% 66.58% 63.85% 60.00% 57.91% 63.11% 61.00% 54.09% 52.06% 51.90% 49.86% 58.79% 60.00% 50.00% 47.93% 50.00% 40.00% 40.00% 30.00% 30.00% 20.00% 20.00% 10.00% 10.00% 0.00% 0.00% 13th 25th 37th 49th 61st 13th
Slide 50: Persistency ratios (by month)
70.00% 90.00% 64.99% 65.47% 59.06% 59.00% 80.00% 77.61% 76.84% 60.00% 71.70% 55.32% 55.60% 53.67% 71.32% 67.84% 52.45% 70.00% 68.31% 64.97% 51.42% 50.85% 64.70% 61.91% 50.00% 62.73% 60.00% 40.00% 50.00% 30.00% 40.00% 30.00% 20.00% 20.00% 10.00% 10.00% 0.00% 0.00% 13th Month 25th Month 37th Month 49t
Slide 51: Technological and Digital Initiatives
V TECHNOLOGICAL AND DIGITAL INITIATIVES
Slide 52: Online service requests
Online service requests 2021-22 9MFY23 3,94,542 8,62,228 Loan payment and Growth repayment e-NACH 118.54% ULIP fund switch Change of Mode PAN data NEFT registration registration Aadhaar based change of address Source Corporation data 50
Slide 53: Modes of premium collection and percentage to total policies
Modes of premium collection and percentage to total policies 30.00% 27.26% 27.30% 25.80% 25.56% 24.79% 25.00% 23.68% 20.00% 15.00% 13.50% 11.64% 10.00% 8.89% 8.47% 5.00% 0.63% 0.54% 0.95% 0.99% 0.00% LIC Portal/APP Other Apps Bill Pay NACH & Direct Merchant Banks & Cash counter Debit Frenchisees 9MF
Slide 54: No. of Customers
LIC customer APP users Portal registered customers Figures in Figures in App rating Lakh Lakh 3.89/ 5.00¹ 70 250 60 208 59.53 200 193.8 57.5 50 169 No. of Customers 45.4 40 150 30 100 20 10 50 0 FY21 FY22 9MFY23 0 FY21 FY22 9MFY23 Source Corporation data,.¹App Rating as on 31.12.2022 52
Slide 55: Strengthening our digital process
Strengthening our digital process Empowering Policyholders 1. Policy Status Application facilitate submission of 2. First Unpaid Premium Digital existence certificate for date individual pension plan and staff 3. Last paid premium date LIC docQ Application helps pensioners of LIC 4. Download forms u
Slide 56: Empowering policyholders and agents in a digital world
Empowering policyholders and agents in a digital world Source Corporation data 54
Slide 57: LIC in WhatsApp
LIC IN WHATSAPP BASIC DETAILS CALL CENTRE PHONE NUMBER SERVICE : 8976862090 (022)6827 6827 LIC MOBILE APP: SAY HI TO START LIC CUSTOMER COVERSATION WhatsApp services started on 01.12.2022 and 1,67,87,430 customers opted/enabled as on 31.12.2022. Source : Corporation Data as on 31.12.2022 43
Slide 58: LIC in WhatsApp
LIC IN WHATSAPP SERVICES CONDITIONS Eligible for portal registered Branded users who have logged into Automated verified portal at least once Messages conversation Ease of Streamlined customer The mobile registered in the interaction portal and the Whatsapp services mobile no. should be same Source
Slide 59: Technological innovations at LIC
Technological innovations at LIC Solutions designed to enhanced operational efficiency and respond with speed to specific situations Ananda APP – launched during COVID to enable Agents to do business without meeting customers face to face Time to Policy conclusion is less than 8 Minutes. Now ANANDA
Slide 60: Operational efficiency - print to post solution
Operational efficiency- illustration - print to post solution Print to Post – Developed Solution with Postal Department Policy bond printing and delivery solution. Dispatch of Tracking of Undelivered BRANCH OFFICE - 2048 policy bond policy bond return to Branch SATELITE OFFICE -1575 through speed th
Slide 61: ESG Initiatives
VI ESG INITIATIVES
Slide 62: Embedding ESG in our business - building a sustainable future for the communities
Embedding ESG in our business - building a sustainable future for the communities LIC has integrated the SDGs with key areas of their business operations. LIC initiatives have ensured a positive contribution to at least 12 of the 17 SDGs ✓Rural areas contributing 20.8% of individual policies sold an
Slide 63: Embedding ESG in our business - building a sustainable future for the communities
Embedding ESG in our business - building a sustainable future for the communities LIC has integrated the SDGs with key areas of their business operations. LIC initiatives have ensured a positive contribution to at least 12 of the 17 SDGs ✓ Support to various other sanitation projects by LIC GJF. ✓ C
Slide 64: Embedding ESG in our business - building a sustainable future for the communities
Embedding ESG in our business - building a sustainable future for the communities LIC has integrated the SDGs with key areas of their business operations. LIC initiatives have ensured a positive contribution to at least 12 of the 17 SDGs ✓Outstanding investments worth INR 14.1bn in renewable energy
Slide 65: Committed to ESG initiatives across the organisation
Committed to ESG initiatives across the organisation Roof top solar capacity installed (KW) Series1 Total Reduction of carbon emissions (in tons) 4500 4000 4171 3460 4000 3500 3500 3376 2966 3000 2856 3141 3000 2500 2500 2051 2254 2000 1812 2024 2000 1500 1500 1000 1000 500 500 0 0 FY 2019 FY 2020 F
Slide 66: Way Forward
VII WAY FORWARD
Slide 67: Way Forward – Strategic Initiatives
Way Forward – Strategic Initiatives I. Diversify Product Mix – Focus on enhancing Non Par Share. II. Launch New Products based not only on customer needs but also channel needs. III. Increase digital processes all across to drive higher efficiency. IV. Create optimum mix of distribution channels whi
Slide 68: (a) Indian Industry Landscape
(a) INDIAN INDUSTRY LANDSCAPE 66
Slide 69: India is one of the fastest-growing major economies
India is one of the fastest – growing major economy (GDP growth, percentage year-on-year) 10 5 0 -5 -10 -15 2014 2015 2016 2017 2018 2019 2020 2021 2022P 2023P 2024P 2025P India 7.4 8 8.3 7 6.1 4.2 -8 9 9 7.1 6.3 6.2 China 7.3 6.9 6.8 6.9 6.7 6 2.3 8.1 4.8 5.2 5.2 5.1 Japan 0.4 1.2 0.5 2.2 0.3 0.3 -
Slide 70: Share of Life Insurance in incremental household financial saving
Share of Life Insurance in incremental household financial saving 120.00% 100.00% 12.30% 14.70% 13.40% 2.70% 1.90% 6.60% 80.00% 13.00% 12% 14.50% 18.70% 19.30% 60.00% 16.70% 16.80% 15.00% 40.00% 19.40% 20.00% 36.50% 36.60% 29.40% 0.00% FY 19 FY 20 FY 9M21 Bank Deposits Life Insurance Funds Provident
Slide 71: Protection gap for different countries
Protection gap for different countries 90% 83% 80% 76% 74% 71% 70% 70% 61% 60% 55% 55% 54% India’s protection 50% gap for India was 41% 83% as of 2019, the 40% highest among all countries in Asia- 30% Pacific¹ 20% 10% 0% India Indonesia Malaysia Thialand China Japan South Singapore Australia Hong Ko
Slide 72: Well Positioned to Ride the Growth in a Highly Underinsured Market
Life Insurance Penetration %age Insurance Density (in US$)* 25 10000 8983 9000 20 19.2 8000 7000 15 14 6000 5000 10 4000 7.6 6.4 5.8 3000 2329 2050 5 4 3.4 3.2 2000 1000 415 244 241 59 0 0 Hong Taiwan Singapore South Japan Malaysia Thailand India Hong Kong South Japan Malaysia Thailand China India K
Slide 73: Household saving to increase
Household saving to increase Household Savings (% of GDP) 30.00% Household 25.20% saving as 25.00% 23.60% 23.10% 23.60% percentage 22.40% 22.50% 22.20% 20.30% 20.30% of GDP 19.60% 19.30% 19.60% 20.00% 18.00% 18.10% rose to 22.2% in 15.00% fiscal 2021 10.00% 5.00% 0.00% FY08 FY09 FY10 FY11 FY12 FY13
Slide 74: Share of financial assets in overall savings to increase
Share of financial assets in overall savings to increase 25000 120% 22846 21341 21780 20564 100% 20000 80% 16147 14962 15000 60% 12572 11908 10640 10000 40% 20% 5000 0% FY1 FY1 FY1 FY1 FY1 FY1 FY1 FY1 FY2 2 3 4 5 6 7 8 9 0 0 Saving in Physical Assets 69% 67% 64% 64% 55% 59% 60% 63% 59% Trend in Gros
Slide 75: Share of Life Insurance in incremental household financial savings
Share of Life Insurance in incremental household financial savings 120.00% 100.00% COVID-19 HAS 80.00% Prompted people to become more inclined towards 60.00% saving and purchasing all – encompassing 40.00% life covers, which will likely 20.00% to increase demand for life insurance in 0.00% India. Li
Slide 76: Increasing insurable population to fuel industry growth
Increasing insurable population to fuel industry growth India’s Demographic Dividend 120% 100% 7% 9% 10% 13% 80% 30% For 2021, India has 33% 37% largest share of young 40% population in the 60% world, with a medium 27% 28% age of 28 Years. About 40% 26% 90% of Indians will 24% still be below the age
Slide 77: Income demographics
Income demographics 120% 100% 80% 60% Rising Income level to make insurance 40% products more affordable. 20% 0% 2011-12E 2016-17E 2021-22P Rs. 1 million and above 1% 2% 3% Rs. 0.5 to 1 million 2% 2% 4% Rs.0.2 to 0.5 million 14% 19% 28% Below 0.2 million 83% 76% 65% Below 0.2 million Rs.0.2 to 0.5 m
Slide 78: Strong growth in total premium for life insurance industry
Strong growth in total premium for life insurance industry 7000 CAGR 11% 16% 6287 14% 14% 6000 5729 13% Total premium 12% 5081 12% has grown at 11% 5000 4588 11% CAGR in last five 4185 10% 10% years ending 10% 4000 FY21. Amongst 3669 the different 8% player groups, 3000 LIC, which holds 6% the maxim
Slide 79: Projected growth in total premium over next five years
Projected growth in total premium over next five years 14000 INR Billion 12408 12000 10988 10000 9704 Insurers to grow at 14-15% CAGR 8294 over the next five 8000 7254 years. 6287 Consequently , 6000 5729 the total premium 5081 is expected to 4588 4185 grow by 2 times. 4000 3669 2000 0 FY16 FY17 FY1
Slide 80: (b) Financials
(b) FINANCIALS
Slide 81: Financials - Standalone Balance Sheet
Financials - Standalone Balance Sheet (INR lakhs) For the Year ended For the Nine months ended Particulars March 31, 2021(Standalone) March 31, 2022(Standalone) December 31, 2021(Standalone) December 31, 2022(Standalone) Sources of funds Shareholders' funds: Share capital 10,000.00 6,32,499.77 6,32,
Slide 82: Financials - Standalone Statement of Revenue (Policyholders’ Account)
Financials - Standalone Statement of Revenue (Policyholders’ Account) (INR lakhs) For the year ended For the Nine months ended Particulars March 31, 2021(Standalone) March 31, 2022(Standalone) December 31, 2021(Standalone) December 31, 2022(Standalone) Premiums earned - net (a) Premium 4,03,28,655.4
Slide 83: Financials – Standalone Statement of Profit & Loss (Shareholders’ Account)
Financials – Standalone Statement of Profit & Loss (Shareholders’ Account) (INR lakhs) For the year ended For the Nine months ended Particulars March 31, 2021(Standalone) March 31, 2022(Standalone) December 31, 2021(Standalone) December 31, 2022(Standalone) Amounts transferred from/to the Policyhold
Slide 84: Glossary
Glossary ❖New Business APE: The sum annualized first year premiums on regular premium policies, and 10.00% of single premiums, written by the Company during the fiscal year from both retail and group customers. ❖New Business Premium NBP: Insurance premium that is due in the first policy year of a li
Slide 85: Abbreviation
Abbreviation Term Description Term Description GWP Gross Written Premium Opex Operating Expenses (excluding commission NBP New Business Premium CAGR Compounded Annual Growth Rate NOP Number of Policies GDP Gross Domestic Product APE Annualized Premium Equivalent INR (Rs.) Indian Rupees IRP Individua
Slide 86: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation which contain words or phrases such as ‘will’, ‘would’, ‘indicating’, ‘expected to’ etc., and similar expressions or variations of such expressions may constitute ‘forward-looking statements’. These fo
Slide 87: Thank You
THANK YOU Investor Relations Contact: Life Insurance Corporation of India Yogakshema, Seventh Floor, East Wing, Jeevan Bima Marg, Nariman Point, Mumbai- 400021. Contact # +91 66599479 Email - investorrelations@licindia.com Website – www.licindia.in
Life Insurance Corporation of India — Investor Presentation (February 2023) on 6ix