Bangkok Life Assurance Public Co., Ltd. · SET:BLA
Bangkok Life Assurance Public — Q1 2019 Earnings Presentation
25 slides from Bangkok Life Assurance Public's earnings presentation, May 15, 2019
Slide 1: 1Q 2019 Results Presentation
1Q 2019 Results Presentation Investors and Analyst update May 15, 2019 © Bangkok Life Assurance
Slide 2: Disclaimer
Disclaimer The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events and financial performance. These views are base
Slide 3: Agenda
Agenda 1 Key Highlights & Recent Development 2 Business and Operation 3 Financial Summary 4 Outlook 5 Q&A 5/14/2019 © Bangkok Life Assurance 3
Slide 4: Agenda
Agenda 1 Key Highlights & Recent Development 2 Business and Operation 3 Financial Summary 4 Outlook 5 Q&A 5/14/2019 © Bangkok Life Assurance 4
Slide 5: 1Q 2019: Key Highlights
1Q 2019: Key Highlights New Business Renewal Total Financial Premium Premium Premium Highlight -42% -16% -21% Unit : Million Baht 13,305 10,628 ROI 3.93% 2,677 8,972 10,514 Inv. Yield 4.03% 69% 69% 69% 39% 61% 69% 62% Bancassurance 1,542 NPAT 1,286 MB Agent Channel EPS Bt 0.75 66% Others 22% 26% 31%
Slide 6: FYP: Bancassurance
FYP: Bancassurance - 1Q’19 FYP drop -42% YoY due to impact of AIA and high campaign of WL in 1Q’18 - Compared to 4Q18, FYP increases 10% QoQ. New Business Premium New Business Premium Product Mix Bancassurance Bancassurance Unit : Million Baht -42% -44% 2% 2% 3% 2,677 1,836 32% 30% Others Whole Life
Slide 7: FYP: Agent Channel
FYP: Agent Channel - FYP decreases 33% due to 1) Decrease in FYP from filler products 2) one time impact from pension sold in 1Q18. Excluding above 2 factors, FYP decrease only approx. 10% - Better product mix 1) Higher WL mix 2) Less filler 3) Higher Rider attachment ratio New Business Premium New
Slide 8: FYP: Others
FYP: Others - Online and Direct Marketing channel show improving trend New Business Premium Unit : Million Baht -42% 2,677 • Most of Other classification is Group Employee Benefits which dropped YoY. 69% 1,542 • However, we saw the potential 66% distribution: Online +33% YoY and Direct Marketing +38
Slide 9: 1Q 2019: Renewal Premium
1Q 2019: Renewal Premium Impact from products sold in 2014 approx. 2,000 Mb Renewal Premium Unit : Million Baht -16% 10,628 8,972 69% 69% 39% Bancassurance 61% Agent Channel Others 26% 31% 5% 8% 1Q2018 1Q2019 5/14/2019 © Bangkok Life Assurance 9
Slide 10: Key activities mainly focus on distribution, products, customer and branding
Key activities mainly focus on distribution, products, customer and branding 1 Distribution Agent restructuring | Branch visit | New partnership 2 Product Prestige health | PA Oon Jai Rak | OPD Sa Bai Jai 3 Customer BLAEveryCare | NDID | Happy Life Club 4 Branding New campaign – presenter 5/14/2019
Slide 11: Agenda
Agenda 1 Key Highlights & Recent Development 2 Business and Operation 3 Financial Summary 4 Outlook 5 Q&A 5/14/2019 © Bangkok Life Assurance 11
Slide 12: Agent Development
Agent Development New licensed agent has increased 13% from previous year. New Licensed Agent Outstanding Agent & FA +13% Number of Agent & FA Person Total Outstanding Agent 15,300 Total Financial Advisor (FA) 1,359 As of Mar 2018 As of Mar 2019 12
Slide 13: Core Strategies and Plans
Core Strategies and Plans 1. New 2. SMART Agent Products Program Full time guarantee To meet the needs program for new of all target groups. agents To drive sales volume and To drive new agents and generate VNB. improve agent capability. 3. Agency 4. BLA Station Group Restructuring New dimension of
Slide 14: Agent Channel: New Products
Agent Channel: New Products Customer Targets Products Highlights BLA Prestige Health Covering medical treatments expenses up to 100 mb worldwide. Can be used to pack with BLA Prestige Life for high- Upper end customers. PA Oon Jai Rak Full coverages of personal accidental benefits up to 3 times, eas
Slide 15: Agency Group Restructuring
Agency Group Restructuring Yonok Nakorn Chinnarat 1 North Nakarat 1 Chinnarat 2 Nakarat 2 North East Nakarat 3 Suwannaprom Central Nakarat 4 BKK East Nakhon Luang 1 Nakhon Luang 2 Burapha Nakhon Luang 3 Nakhon Luang 4 Nakhon Luang 5 South Push Strategy to increase sales volume and drive Sirithammara
Slide 16: BLA Station : Progression
BLA Station : Progression 1 BLA PATANA Application for BLA’s agents. • New dimension of worldwide learning and information warehouse. • Can be downloaded on both IOS and Android systems. • Official activate in Q2/2019. Home 2 BLA Marketing 3 BLA Sales Promotion 1 2 3 5/14/2019 © Bangkok Life Assuran
Slide 17: Agenda
Agenda 1 Key Highlights & Recent Development 2 Business and Operation 3 Financial Summary 4 Outlook 5 Q&A 5/14/2019 © Bangkok Life Assurance 17
Slide 18: 1Q 2019 Financial Summary
1Q 2019 Financial Summary Million Baht 1Q’19 % of TNP 1Q’18 % of TNP %YoY First year premium 1,542 16% 2,677 21% -42% Renewal premium 8,972 91% 10,628 84% -16% REIN&UPR (703) -7% (643) -5% 9% Total Net Premium (TNP) 9,812 100% 12,662 100% -23% Investment income 3,123 32% 3,405 27% -8% Other income 1
Slide 19: Investment Assets Allocation
Investment Assets Allocation Asset Class 1Q 2019 4Q 2018 Change (pps) Short-term investment Short-term Investment 2.5% 5.3% -2.8% decrease from benefit payment. Bond 44.5% 44.0% 0.5% Debenture & Notes 33.3% 32.4% 0.9% Total Fixed Income 80.3% 81.7% -1.4% Equity and REIT increase Equity 9.4% 8.6% 0.8
Slide 20: Investment Income
Investment Income Sources of Investment Income (MB) • Investment yield was 4.03% while Accounting ROI was 3.93% decrease from 4.52% in 1Q18 due to realized gain of 360 Mb in 1Q’18 while realized loss of 78 Mb in 1Q’19. 3,398 3,618 3,569 3,506 • Interest and dividend grow along with asset size. 450 2
Slide 21: Capital Adequacy Ratio
Capital Adequacy Ratio CAR (RBC) Total Capital Required (TCR) 270% 16.8% REITs 260% 260% 257% 24.6% Equity Risk 252% 252% 10.9% Interest Rate Risk 240% 24.8% Credit Risk 20.4% Insurance Risk 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 LI Company CAR ▪ Well diversification across major 5 risk types SCBL 469%
Slide 22: Agenda
Agenda 1 Key Highlights & Recent Development 2 Business and Operation 3 Financial Summary 4 Outlook 5 Q&A 5/14/2019 © Bangkok Life Assurance 22
Slide 23: Outlook
Outlook Outlook Challenge - Bancassurance channel performance Regulations and protocols affect life likely to be better than the first quarter. insurance industry However, YoY growth is still effect on high base. 1 Fair market conduct [effective 1 Jan 2019] - Agent channel is normally low season in
Slide 24: Agenda
Agenda 1 Key Highlights & Recent Development 2 Business and Operation 3 Financial Summary 4 Outlook 5 Q&A 5/14/2019 © Bangkok Life Assurance 24
Slide 25: For further information & enquiries, please contact our Investor Relations
For further information & enquiries, please contact our Investor Relations at ir@bangkoklife.com +66 (0) 2777-8846
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