Sbi Life Insurance Co. Ltd. · NSE:SBILIFE
Sbi Life Insurance — Q1 FY2025 Earnings Presentation
51 slides from Sbi Life Insurance's earnings presentation, Jul 25, 2024
Slide 1: Exchange cover letter: press release and investor presentation
July 24, 2024 SBIL/CS/NSE-BSE/2425/81 Assistant Vice President General Manager Listing Department, Listing Department, National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, BKC, Dalal Street, Bandra (East), Mumbai 400051 Mumbai 40000
Slide 2: Performance for the quarter ended June 30, 2024
News Release July 24, 2024 BSE Code: 540719 NSE Code: SBILIFE Performance for the quarter ended June 30, 2024 Private Market leadership in NBP of 70.3 billion with 13% growth and 21.8% market share Private Market leadership in Individual NBP of 47.5 billion with 17% growth and 25.9% market share
Slide 3: Key financial ratios and business growth
Particulars Q1 FY 2025 Q1 FY 2024 YoY Key Financial Ratios Operating expense ratio3 6.1% 6.8% - Commission ratio4 4.4% 4.0% - Total cost ratio5 10.5% 10.8% - Persistency Ratios - Premium Basis (Regular Premium/ Limited Premium payment under individual category)6 13th month persistency 86.5% 85.0% -
Slide 4: Distribution network and cost efficiency
Distribution network The Company has strong distribution network of 327,038 trained insurance professionals consisting of Agents, CIFs and SPs along with widespread operations with 1,062 offices across country. The Company has diversified distribution network comprising of strong bancassurance c
Slide 5: Financial position and definitions
Financial position The Company’s net worth increased by 15% from 135.3 billion as on June 30, 2023 to 155.7 billion as on June 30, 2024. Robust solvency ratio of 2.01 as on June 30, 2024 as against the regulatory requirement of 1.50 indicating strong financial position of the Company. Definition
Slide 6: About SBI Life Insurance
About SBI Life Insurance SBI Life Insurance (‘SBI Life’ / ‘The Company’), one of the most trusted life insurance companies in India, was incorporated in October 2000 and is registered with the Insurance Regulatory and Development Authority of India (IRDAI) in March 2001. Serving millions of families
Slide 7: changes in India and other jurisdictions on us. SBI Life Insurance Company Limited undertakes
changes in India and other jurisdictions on us. SBI Life Insurance Company Limited undertakes no obligation to update forward looking statements to reflect events or circumstances after the date thereof. This release does not constitute an offer of securities. For investor queries please call Sangra
Slide 8: Investor Presentation Performance Update June 2024
INVESTOR PRESENTATION Performance Update I June 2024
Slide 9: Content
CONTENT 01 03 05 Key Indicators Focus Areas Annexure & Highlights and Initiatives 02 04 Company Macro Economic Overview Indicators & Industry Overview
Slide 10: Key Indicators & Highlights
01 KEY INDICATORS & HIGHLIGHTS 3
Slide 11: Thriving in dynamic environment building resilient business model
Thriving in dynamic environment building resilient business model Trained Human Capital Technological Innovation Diverse Distribution 3.3 lacs 98.5% 1,062 Insurance personnel, focus on Individual applications Offices with strong need based selling submitted digitally distribution channels Financial
Slide 12: Driving growth through excellence and exuberance
Driving growth through excellence and exuberance ₹ in billion New Business Premium New Business APE Profit After Tax ₹ 70.3 ₹ 36.4 ₹ 5.2 +13% 17% CAGR +20% 14% CAGR +36% 7% CAGR Renewal Premium Individual Rated Premium Value of New Business & Margin ₹ 85.4 ₹ 32.2 ₹ 9.7 +16% 19% CAGR +21% 15% CAGR +1
Slide 13: Company Overview
02 COMPANY OVERVIEW 6
Slide 14: Continuing superlative performance with excellence
Continuing superlative performance with excellence New Business Premium (%) Individual New Business Premium (%) Industry 15 8 19 23 Industry 11 10 19 18 Private 18 15 24 15 Private 16 15 24 21 22 17 28 13 21 20 37 17 7Yr CAGR 5Yr CAGR 3Yr CAGR Growth 7Yr CAGR 5Yr CAGR 3Yr CAGR Growth Individual Rate
Slide 15: Persistently delivering growth and acquiring market share
Persistently delivering growth and acquiring market share ₹ in billion GWP 587.6 673.2 814.3 135.6 155.7 15% SBIL Market Share Individual Rated New Business Premium¹ Period Private Industry 431.9 377.3 16% Q1 FY25 (%) 22.4 15.0 333.0 85.4 73.5 144.1 86.8 6% 3Yr Gain (bps) 353 377 89.6 21.5 22.8 209.
Slide 16: Robust distribution and diversified product mix
Robust distribution and diversified product mix Channel Mix ₹ in billion NBP Individual NBP 254.6 295.9 382.4 62.1 70.3 165.0 209.1 238.3 40.6 47.5 53% 60% 52% 51% 58% Banca 62% Banca 65% 67% 64% 66% Agency Agency 18% 18% 21% 19% 19% 23% 27% 27% 23% 21% Others Others 29% 21% 31% 28% 13% 13% 15% 19%
Slide 17: Unparallel multi-channel distribution reach
Unparallel multi-channel distribution reach Pillars of distribution network Bancassurance Agency Institutional Alliance Direct & Corporates 27,000+ 2,57,000+ 14,000+ Top 3 SBI & RRB Bank Branches Agents (15% growth over Jun 23) Partner Branches in Industry in fund business 30% 30% 132 Call Centers –
Slide 18: Product portfolio mix
Product portfolio mix ₹ in billion Y-o-Y Mix Product Mix¹ FY22 FY23 FY24 Q1 FY24 Q1 FY25 Individual Savings Growth (%) Q1 FY25 (%) 35.7 Savings 137.8 157.5 178.1 27.1 35.7 32 51 16.2 Par 7.7 9.5 8.0 2.0 1.4 (29) 2 2x Q1 FY20 Q1 FY25 17% Non Par 17.0 36.7 32.3 5.7 6.8 18 10 Protection ULIP 113.2 111.
Slide 19: Wide range of offerings
Wide range of offerings Wealth Creation Average Age 38 | 33% % share in policies Care free Retirement Protection Smart Elite 55 | 7% 37 | 22% New Saral Retirement Saver Smart Privilege Smart Swadhan Supreme Child Education Financial Security 36 | 8% Retire Smart eWealth Insurance New Saral Swadhan 3
Slide 20: Maintaining cost efficiency, profitability and value
Maintaining cost efficiency, profitability and value Opex Ratio: Maintaining Cost efficiency (%) | Total Cost Ratio1 % Profit after Tax: Consistent growth in profit ₹ in billion 8.8% 9.6% 8.9% 10.8% 10.5% 18.9 17.2 6.8% 15.1 5.1% 5.1% 4.9% 6.1% 3.8 5.2 FY22 FY23 FY24 Q1 FY24 Q1 FY25 FY22 FY23 FY24 Q
Slide 21: Customer-centricity at our core
Customer-centricity at our core Persistency 1(%) Surrender Ratio 2 (%) 13th Month 25th Month 37th Month 85.5 86.8 85 86.5 75.6 77.4 76.1 77.5 74.5 74.8 71.3 71.7 6.5 5.8 6.3 5.1 FY23 FY24 Q1 FY24 Q1 FY25 FY23 FY24 Q1 FY24 Q1 FY25 49th Month 61st Month Unfair Business Practice 3(%) 70.3 72.7 70.4 73
Slide 22: Value of new business movement
Value of new business movement VoNB margin stands at 26.8% ₹ in billion VoNB 28.8% _ (2.6%) 0.7% (0.1%) 26.8% Margin (%) 1.7 (0.9) 9.7 0.2 (0.03) 8.7 Q1 FY24 Impact of Business New Business Mix & Change in Operating Change in Economic Q1 FY25 Volume Profile * Assumptions Assumptions # 15 The methodo
Slide 23: Nurturing financial well being with healthy growth in AUM
Nurturing financial well being with healthy growth in AUM ₹ in billion AuM - Linked | Non Linked (%) Composition of Asset under Management 3,073 3,889 3,283 4,148 3% 1% 1% Government securities 30% 26% Equity 47 92:8 44 91:9 46 92:8 44 90:10 Debentures and bonds Others Money market instruments 53 52
Slide 24: Focus Areas and Initiatives
03 FOCUS AREAS AND INITIATIVES 17
Slide 25: Focus on key areas keeping customer at core
Focus on key areas keeping customer at core • 1,062 offices (40% in rural & semi • 710k times customers served urban areas) & 40k+ branches of using WhatsApp services distributors Widespread distribution network & • Policy document through Whats • 36 individual & 9 group products app chat bot for cu
Slide 26: Accelerating digitalisation at SBI Life
Accelerating digitalisation at SBI Life Digital Digital & Distributor Simplified Ecosystem Enablers Customer Journey Becoming a digital-first organisation Performance Processes Product Improvements Stakeholder-Centric • Providing insurance cover to • Elasticity to handle high volumes • Faster produc
Slide 27: Future-led digital ecosystem
Future-led digital ecosystem Flexibility 800 Bitsight Score Robustness • 914 varied product features built in PMS • 21 products in group 73.9mn Agility policy system Servicing Inforce Lives • 45 functionalities • Strategic collaborations • Stronger digital (YONO branch portal, Yes Bank, Insurance ca
Slide 28: Integrating digitalisation with our enablers
Integrating digitalisation with our enablers Centralised IT Service Management, One view dashboard for critical Digital Onboarding Workflow, IT Asset application monitoring (Uptime, Management and IT Compliance performance and transactions) Management Key metrics Protection of Personal IT Service de
Slide 29: Empowering distributors with cutting-edge technologies
Empowering distributors with cutting-edge technologies Launched Mconnect PWA Establishing a robust distributor ecosystem and Revamp. Banca Online 3.0 launched with Integrated Mconnect with 101 reports on Aaram intuitive interface, making campaign products and Nxt and 36 on Aasaan navigation smoother
Slide 30: End-to-end digital journey for customers
End-to-end digital journey for customers Prospecting Onboarding Underwriting Executing a focused Enhancing the process & Issuance strategy to evolve it into a for greater efficiency, Improving accuracy and need-based customer- accessibility, and a seamless efficiency of underwriting and centric proc
Slide 31: End-to-end digital journey for customers
End-to-end digital journey for customers Policy Servicing Renewals Claim Payouts Dual benefits of offering Automating tasks, Accelerating personalised services whilst utilising data claims settlements, while also streamlining and insights to enhancing transparency, internal processes. optimise our r
Slide 32: Macro Economic Indicators & Industry Overview
04 MACRO ECONOMIC INDICATORS & INDUSTRY OVERVIEW 25
Slide 33: Life insurance catalysing growth decades ahead
Life insurance catalysing growth decades ahead Composition of Population¹ (%) Life Insurance Penetration 2 (Premium as Life Insurance Density 2 US$ % of GDP 7,799 6.9 8.8 11.6 15.0 7 49.8 52.7 54.4 54.0 4 3 3 18.0 16.2 14.0 2 13.0 1 590 25.3 22.3 20.1 384 508 18.0 95 66 66 2022 2030 2040 2050 Singap
Slide 34: India's underpenetrated Insurance market
India’s underpenetrated Insurance market Share of life insurance in savings expected to rise Underpenetrated Insurance Market Protection gap highest amongst peers1 (%) Sum Assured as % of GDP2,3 (%) Retail Loans `tn 83 332 76 53 71 70 252 251 44 55 55 34 153 143 127 24 85 17 12 India Indonesia Thail
Slide 35: Annuity solutions for retirement bliss
Annuity solutions for retirement bliss Scope of Annuities business Pension Assets/GDP ratio1 (2022) (%) Ageing Population (60+)2 (%) Life Expectancy at 603 131.4 20.8 16.4 78.7 12.9 10.5 22 22 49.5 19 20 17 18 23.4 3.1 Australia USA Hongkong Japan India 2022 2030 2040 2050 2000-05 2011-12 2030E Male
Slide 36: India's financial evolution
India’s financial evolution Share of Life Insurance in Household Savings expected to Rise Fastest growing G20 Economy ³ Household Savings Composition (%) Share of Life Insurance in Average annual real GDP growth (%) Financial Savings1 (%) 6.7 3 3 2 7 6 26 37 37 40 27 5.0 48 4.3 60 61 59 60 69 17 17
Slide 37: Industry composition
Industry composition Product portfolio¹ Channel mix2 Industry (%) Industry (%) 13 13 11 10 11 10 25 27 28 29 32 33 Banca ULIP 87 87 89 90 89 90 66 62 60 58 Agency Traditional 55 53 Others 9 11 12 13 13 14 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Private Players (%) Private Players
Slide 38: Annexure
sss OSBILife 05 Annexure
Slide 39: Annualised premium equivalent (APE)
Annualised premium equivalent (APE) ₹ in billion APE Product mix and Channel mix Mix Segment FY23 FY24 Q1 FY24 Q1 FY25 Y-o-Y Growth Q1 FY25 Individual Savings 139.8 159.6 23.8 30.6 28% 84% Par 9.5 7.8 2.0 1.4 (29%) 4% Non Par 37.5 32.4 5.9 7.0 19% 19% ULIP 92.9 119.3 16.0 22.2 39% 61% Protection 17.
Slide 40: Individual Annualised premium equivalent (APE)
Individual Annualised premium equivalent (APE) Channel Mix Segment wise ₹ in billion Y-o-Y Mix Channel Segment FY23 FY24 Q1 FY24 Q1 FY25 Growth Q1 FY25 Bancassurance Participating 3.4 2.8 0.9 0.5 (36%) 2% Non Participating 31.1 28.7 5.7 5.7 1% 17% Unit Linked 69.7 85.6 12.0 14.4 21% 44% Total 104.2
Slide 41: Sensitivity analysis
Sensitivity analysis Scenario Change in VoNB Reference Rate +100 bps (0.6%) Reference Rate ‒100 bps 0.7% Decrease in Equity Value 10% (0.3%) Proportionate change in lapse rate +10% (3.8%) Proportionate change in lapse rate -10% 4.0% Mortality / Morbidity +10% (5.8%) Mortality / Morbidity -10% 5.8% M
Slide 42: Customer age and policy term
Customer age and policy term Average customer age in years Average policy term in years 39 39 38 26 36 36 16 17 14 14 Par Protection ULIP Non Par - Overall Par Protection ULIP Non Par - Overall Others Others 35 Age and term for Individual products for June 24
Slide 43: Revenue and profit & loss A/C
Revenue and profit & loss A/C ₹ in billion Particulars FY23 FY24 Q1 FY24 Q1 FY25 Premium earned 673.2 814.3 135.6 155.7 Premium on reinsurance ceded (7.3) (8.4) (4.5) (4.7) Net premium earned 665.8 805.9 131.0 151.1 Investment income1 140.4 514.1 147.9 195.7 Other income 0.5 0.5 0.1 0.0 Total income
Slide 44: Balance Sheet
Balance Sheet ₹ in billion Particulars FY23 FY24 Q1 FY25 Sources of funds Share Capital 10.0 10.0 10.0 Reserves and Surplus 119.2 135.9 141.2 Credit/(Debit) Fair Value Change Account 0.9 3.2 4.5 Sub Total 130.2 149.1 155.7 Credit/(Debit) Fair Value Change Account 20.4 47.2 57.2 Policy Liabilities 1,
Slide 45: Our sustainability commitments: Environment
Our sustainability commitments: Environment Energy Management Water Management • Measures in place to track Scope 1, Scope 2 and Scope 3 • Unused water from the water cans procured by the emissions for the offices. company re-used to water the garden plants. • Company is assessing various options li
Slide 46: Our sustainability commitments: Social
Our sustainability commitments: Social Empowering communities around us, enabling an Inclusive World Employee wellness & people practices Customer Centricity • Work from Home policy • Customer Surveys (Net Promoter Score - 72) & awareness programs • Health check-up programs & wellness sessions at pa
Slide 47: Our sustainability commitments: Governance
Our sustainability commitments: Governance Information Security framework Board Governance & Diversity • Information security practices are ISO 27001:2013 • 57% Independent Directors on Board ensuring Independence certified. in governance • Acceptable Usage practices, technical aspects of IS, • Wome
Slide 48: Abbreviations
Abbreviations 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 (₹) Indian Rupees IRP Individua
Slide 49: Glossary
Glossary New Business APE New Business Premium (NBP) Value of New Business (VoNB) Embedded Value The sum of annualized first year Insurance premium that is due in the first Value of New Business is the present Operating Profit (EVOP) premiums on regular premium policies, policy year of a life insura
Slide 50: Disclaimer
Disclaimer The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or purchase any securities of SBI Life Insurance Company Limited in India or in any other jurisdiction. This presentation is not intended to be a prospect
Slide 51: Thank You
Investor Relations Contact SBI Life Insurance Co. Ltd, Fifth Floor, Natraj, M. V. Road & Western Express Highway Junction, Andheri (E), Mumbai – 400 069 Dial – +91 22 6191 0281/ 0399 Thank You Email – investorrelations@sbilife.co.in Website – www.sbilife.co.in