Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Investor Presentation (August 2023)
26 slides from Edelweiss Financial Services's investor presentation, Aug 4, 2023
Slide 1: Cover letter to stock exchanges: Business Update on Life Insurance Business
EW/Sec/2023-24/110 August 4, 2023 BSE Limited National Stock Exchange of India Limited P J Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E), Mumbai – 400 001. Mumbai – 400 051. Scrip Code: 532922 Symbol: EDELWEISS Dear Sir/Madam, Sub: Business Update on Life Insurance Bus
Slide 2: Edelweiss Tokio Life Insurance
Edelweiss Tokio Life Insurance Internal 1
Slide 3: Contents
Contents 01 02 03 Industry Edelweiss Tokio Life Insurance Way Forward Internal 2
Slide 4: Industry Highlights
Industry Highlights Indian Market 01 | Industry Increasing financialization of savings and access to diverse instruments has led to savings being channelled to beyond fixed deposits Insurance Opportunity 02 | ETLI Opportunity to significantly grow Insurance Penetration and leverage Protection Gap in
Slide 5: Financialization of Savings significantly increasing savings opportunity in India
Financialization of Savings significantly increasing savings opportunity in India Indian Insurance LI Industry Market Opportunity Performance Amount in $ Bn Households Savings Composition Financial Savings Mix Movement towards Other Financial Instruments Currency & Deposit Life Insurance Mutual Fund
Slide 6: Favourable demographic spread offers robust opportunity to insurers
Favourable demographic spread offers robust opportunity to insurers Indian Insurance LI Industry Market Opportunity Performance Population Composition - India Life Insurance Penetration Protection Gap 7.5% 83% 7% 10% 15% 76% 6.1% 71% 70% 5.8% 61% 55% 55% 58% 3.9% 61% 59% 3.2% 2.1% 35% 1.1% 29% 26% 2
Slide 7: Life insurance industry has capitalised on the opportunity
Life insurance industry has capitalised on the opportunity Indian Insurance LI Industry Market Opportunity Performance Amount in $ Bn Individual Annualized Premium India GDP & Life Insurance Industry growth Equivalent (APE) Assets Under Management GDP growth LI APE growth ~13 ~691 21% 19% 16% ~6 ~35
Slide 8: ETLI Highlights: Our key tenets of Value Creation
ETLI Highlights 01 | Industry Our key tenets of Value Creation Steady growth path across parameters has been driven by our consistent strategic approach 02 | ETLI Superior quality and efficiency have been the cornerstones of our performance Innovation drives our customer-centric strategy to build Tr
Slide 9: Consistency
Consistency Edelweiss Tokio zindagi unlimited ©)
Slide 10: Achieved 44% CAGR growth since inception
Achieved 44% CAGR growth since inception Quality & Customer Consistency Efficiency Centricity Amount in $ Mn ETLI crossed $61 Mn in FY23 FY12 FY17 FY23 Individual Annualized 1 20 61 Premium Equivalent Total Premium 1 54 206 Assets Under 60 181 809 Management Internal 9
Slide 11: With a well-balanced and expanding distribution mix
With a well-balanced and expanding distribution mix Quality & Customer Consistency Efficiency Centricity Presence Distribution Mix 109 700+ Agency Direct Edelweiss Banca & other partnerships Branches Cities Personal Financial Advisors 22% 25% ~69,000 45% 9% Employees 2% 15% 67% 15% ~3,400 FY 17 FY 2
Slide 12: While delivering superior returns
While delivering superior returns Quality & Customer Consistency Efficiency Centricity Double-digit returns on Shareholders’ funds and returns on Policyholders’ funds exceeding 8% Shareholder’s Funds Return 15.6% 14.2% 8.2% Returns to FY21 FY22 FY23 Policyholders Consistent Policyholder’s Funds Retu
Slide 13: Quality & Efficiency
Quality & Efficiency Internal 12
Slide 14: Superior quality in the 12th year as compared to industry
Superior quality in the 12th year as compared to industry Quality & Customer Consistency Efficiency Centricity ETLI Private Industry 12th year - FY23 12th year average Claims Settlement Ratio 99.20% 90.53% 13M Persistency 75% ~70% Internal 13
Slide 15: While driving optimal margins and capital efficiency
While driving optimal margins and capital efficiency Quality & Customer Consistency Efficiency Centricity 6 25 Value of New Business (VNB) ($ Mn) FY17 FY23 225 Embedded Value (EV) ($ Mn) 123 EV Break-even achieved in FY23 FY17 FY23 89% Product Mix 66% Traditional mix (non-linked) Par fund surplus fr
Slide 16: With robust risk management practices
With robust risk management practices Quality & Customer Consistency Efficiency Centricity Claims Settlement Ratio has improved Overall Mortality Experience Actual/Expected is < 100% 99.20% 115% 103% 98.09% 97.01% 74% FY'21 FY'22 FY'23 FY21 FY22 FY23 Fraud Rate has decreased Early Claims (< 2 Yrs) A
Slide 17: Winning accolades across the board
Winning accolades across the board Quality & Customer Consistency Efficiency Centricity Best Life Insurer - 3 times winner BFSI Excellence Awards 2021 | Insurance Alerts 2020 | Outlook Money Awards 2016 Great Place to Work - 3 times in a row Golden Peacock Award 2018 Certified 2021, 2022, 2023 | Top
Slide 18: And recognized as Great Place To Work – 3rd year in a row
And recognized as Great Place To Work – 3rd year in a row Quality & Customer Consistency Efficiency Centricity Among Top 3 Best Workplaces in Life Insurance 1st GPTW Rank Rank Certification 51# 38# 2021 2022 2023 Among India’s Best Companies to Work For Internal 17
Slide 19: Customer Centricity
Customer Centricity Internal 18
Slide 20: Innovation, the catalyst behind our customer-centric approach
Innovation, the catalyst behind our customer-centric approach Quality & Customer Consistency Efficiency Centricity Industry 1st products and features Personalization From earlier Vijaypath - Industry first Our competitive edge is creating approach to personalisation of solutions innovative products
Slide 21: Our product suite with countless Industry Firsts
Our product suite with countless Industry Firsts Quality & Customer Consistency Efficiency Centricity Industry Products One of the 1st plans with guaranteed early income and long-term guarantee with bonuses Point of Sales product to be launched in the industry Covid product in the Life Insurance ind
Slide 22: Driving excellence through performance in key metrics
Driving excellence through performance in key metrics Quality & Customer Consistency Efficiency Centricity FY20 FY23 54 Transactional Net Promoter 48 Score (TNPS) 1 4 0.43 Unclaimed Amount ($ Mn) 0.41 1.00 4.00 Internal 21
Slide 23: Way Forward
Way Forward Edelweiss Tokio zindagi unlimited ©) 22
Slide 24: Focus on our strategic drivers will fuel growth
Focus on our strategic drivers will fuel growth Well- balanced Optimum Product Focus on Quality Distribution Mix Mix Parameters Capital Efficiency Cost Consciousness Internal 23
Slide 25: And create substantial value
And create substantial value Amount in $ Mn Individual Annualized Premium Equivalent (APE) Total Premium Embedded Value (EV) ~104 ~390 ~390 61 225 206 FY 23 in 3 yrs FY 23 in 3 yrs FY 23 in 3 yrs ~1.7x growth in ~2x growth in Total ~2x growth Individual APE Premium in EV Internal 24
Slide 26: Safe harbour
Safe harbour This document may contain certain forward - looking statements, which are tentative, based on current expectations of the management of Edelweiss Tokio Life Insurance Company Ltd (“ETLI”). The results in future may vary from the forward-looking statements contained in this document due
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