Bangkok Life Assurance Public Co., Ltd. · SET:BLA

Bangkok Life Assurance Public — Q3 2019 Earnings Presentation

40 slides from Bangkok Life Assurance Public's earnings presentation, Nov 13, 2019

  1. Slide 1: 3Q19 Results Presentation

    3Q19 Results Presentation Investors and Analyst update November 13, 2019 © Bangkok Life Assurance

  2. 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

  3. Slide 3: Agenda

    Agenda 1 3Q19 and 9M19 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L 3 Outlook by CEO 4 Q&A 11/13/2019 © Bangkok Life Assurance 3

  4. Slide 4: Agenda

    Agenda 1 3Q19 and 9M19 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L 3 Outlook by CEO 4 Q&A 11/13/2019 © Bangkok Life Assurance 4

  5. Slide 5: Synopsis of performance in 3Q19

    Synopsis of performance in 3Q19 • Net profit: 3Q19 +44% YoY, bringing 9M19 to -6% YoY or +8% core profit • Good momentum across distribution channels • Bancassurance: bottoming out & new partnership • Agent: many changes bear fruit with FYP +48% YoY. This came with healthy product mix and increased

  6. Slide 6: Agenda

    Agenda 1 3Q19 and 9M19 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L 3 Outlook by CEO 4 Q&A 11/13/2019 © Bangkok Life Assurance 6

  7. Slide 7: 3Q19: FYP +13% in line with industry

    3Q19: FYP +13% in line with industry RYP -21% due to fully-paid Banc. product sold in 2017, but in line with expectation New Business Renewal Total Premium Premium Premium +13% -21% -16% Unit : Million Baht 10,023 11,749 1,948 1,726 69% 9,878 7,930 69% 39% 68% 57% 56% Bancassurance 68% 57% Agent Cha

  8. Slide 8: 9M19: FYP -28%

    9M19: FYP -28% FYP from agency channel increases from 23% to 31% in channel mix New Business Renewal Total Premium Premium Premium -28% -14% -16% Unit : Million Baht 6,497 32,8801 26,383 22,811 27,481 4,670 69% 70% 65% 39% 58% 65% 59% Bancassurance Agent Channel 61% Others 23% 31% 31% 36% 30% 35% 7%

  9. Slide 9: Banca: 3Q19 FYP -5%

    Banca: 3Q19 FYP -5% TISCO accounts for 23% of bancassurance channel this quarter New Business Premium New Business Premium Product Mix Bancassurance Bancassurance Unit : Million Baht +13% -5% 2% 11% 23% 1,948 1,168 Others 1,726 1,108 3% 31% Whole Life & Term MRTA 57% 31% 68% Endowment 56% 35% 43% 27

  10. Slide 10: Banca: 9M19 FYP -37%

    Banca: 9M19 FYP -37% But we’re seeing good sign going forward New Business Premium New Business Premium Product Mix Bancassurance Bancassurance Unit : Million Baht -28% -37% 2% 6,497 4,560 11% 3% 30% Others 4,670 33% Whole Life & Term 70% 2,875 MRTA 23% Endowment 61% 53% 45% 23% 31% 7% 8% 9M18 9M19

  11. Slide 11: Agent: 3Q19 FYP +48%

    Agent: 3Q19 FYP +48% Many changes that took place resulted in +30% in WL & +91% in endowment New Business Premium New Business Premium Product Mix Agent Channel Agent Channel Unit : Million Baht +13% +48% 1,948 690 1% 1,726 42% Filler 465 49% Whole Life & Term 68% 57% Pension 4% Endowment & Others 7

  12. Slide 12: Agent: 9M19 FYP -2%

    Agent: 9M19 FYP -2% Some highlights are: filler down from 9% to 1%, Rider attachment up from 13% to 17% New Business Premium New Business Premium Product Mix Agent Channel Agent Channel Unit : Million Baht -28% -2% 6,497 1487 1452 9% 1% Filler 4,670 Whole Life & Term 70% 52% Pension 52% Endowment &

  13. Slide 13: “Other channels” seeing positive momentum

    “Other channels” seeing positive momentum Online: 9M19 FYP +268% YoY Direct marketing: 9M19 FYP +9% YoY New partnership • Started selling through 2 new partners • Expect to start selling with 2 additional partners shortly • Several other partnerships in advance negotiation 11/13/2019 © Bangkok Life

  14. Slide 14: AGENT CHANNEL

    AGENT CHANNEL © Bangkok Life Assurance

  15. Slide 15: Agent Development

    Agent Development New licensed agent has increased 8% from previous year. New Licensed Agent Outstanding Agent & FA +8% 1,609 1,492 Number of Agent & FA Person Total Outstanding Agent 16,743 Total Financial Advisor (FA) 1,387 Jan-Sep2018 Jan-Sep 2019 15

  16. Slide 16: Core Strategies and Plans

    Core Strategies and Plans • Eight areas from interested 1. Agency 2. SMART Agent • Opened 5 batches at HO agents are in the process of checking the Office Program (1st and 3rd batch), Pitsanulok, Chiang Mai and Phetchabun. qualifications to open their agency offices. Expansion • The 6th batch, Chonb

  17. Slide 17: Smart Agent Program : Progression

    Smart Agent Program : Progression 4 The 4th batch for Yonok 5 Nakorn group at Chiang The 5th batch for Chinnarat Mai. groups at Phetchabun (Lomsak). Phetchabun 2 The 2nd batch for Chinnarat groups at Phitsanulok. Chonburi 1, 3 & 7 • The 1st and 3rd batch for Nakhon Luang groups. 6 • Last batch, the

  18. Slide 18: Agency Group Restructuring : Progression

    Agency Group Restructuring : Progression Last quarterly plan to drive sales volume of agency groups. Nakarat 1 group Nakhon Luang 4 group 18 11/13/2019 © Bangkok Life Assurance

  19. Slide 19: BLA Station : BLA Hot News

    BLA Station : BLA Hot News Objectives 1) Motivate and report sales production of agency groups. 2) Encourage competition campaigns. 3) Communication of new products and special news from BLA. 19 11/13/2019 © Bangkok Life Assurance

  20. Slide 20: BLA Station : Market Conduct update

    BLA Station : Market Conduct update Course Syllabus OIC&BLA Course Syllabus OIC&BLA Course Syllabus Course Syllabus OIC&BLA OIC&BLA คูม ่ อื การใช้งานใบสม ัครออนไลน์ คูม่ อื การใชง้ าน คูม่ อ ื การใช้งาน ใบสม ัครออนไลน์ เพือ ่ สม ัครอบรม เพือ่ สม ัครอบรมหล ักสูตร OIC&BLA ใบสม ัครออนไลน์ หล ักสูตร OI

  21. Slide 21: BLA Station : Exam testing and guideline update

    BLA Station : Exam testing and guideline update ความรูข ้ อ ิ ค้าใหม่ ้ มูลสน Cancer Max Cancer Max Package Prestige health (ตลอดชพ ั ี +สญญาเพิ ม ่ เติม ส ัญญาเพิม ่ เติม Package (ตลอดชีพ+ส ัญญาเพิม ่ เติม) ั สญญาเพิ ม ่ เติม ฯลฯ อ ัพเดท แนวข้อสอบต ัวแทน 21

  22. Slide 22: BANCASSURANCE CHANNEL

    BANCASSURANCE CHANNEL © Bangkok Life Assurance

  23. Slide 23: Become a part of TISCO Health Protection Advisory

    Become a part of TISCO Health Protection Advisory Press conference 17th Sep BLA presented “My Care Prestige Health” 23 11/13/2019 © Bangkok Life Assurance 23

  24. Slide 24: New Product Launch

    New Product Launch Launch in OCT • Medical Expenses up to 100 M THB worldwide • Coverage up to 99-year old (insurable age 11-80 years old). • Medical fee for OPD including Targeted Therapy and alternative medicine • BLA EveryCare Health service 24/7 *Free Cancer SA 50K THB * More details can be foun

  25. Slide 25: Activities with BBL Cycling Activity on 30th Sep

    Activities with BBL Cycling Activity on 30th Sep Learn more about cycling and local community at the ‘Road to Bangkok Bank CycleFest’ amidst the lush greenery of Bang Kachao 25 11/13/2019 © Bangkok Life Assurance 25

  26. Slide 26: Activities with BBL Money Expo

    Activities with BBL Money Expo Training, Rewarding, Off-site activities 11/13/2019 © Bangkok Life Assurance 26

  27. Slide 27: Agenda

    Agenda 1 3Q19 and 9M19 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L 3 Outlook by CEO 4 Q&A 11/13/2019 © Bangkok Life Assurance 27

  28. Slide 28: Investment asset allocation saw minor changes

    Investment asset allocation saw minor changes Asset Class 3Q19 2Q19 QoQ 2018 YTD Short-term Investment 3.4% 2.1% 1.3% 5.3% -1.9% Bond 43.6% 44.6% -1.0% 44.0% -0.4% Debenture & Notes 33.0% 33.3% -0.3% 32.4% 0.6% Total Fixed Income 80.0% 80.0% 0.0% 81.7% -1.7% Equity 8.8% 9.5% -0.7% 8.6% 0.2% REIT 7.5

  29. Slide 29: Investment income +2% YoY

    Investment income +2% YoY Investment yield stable QoQ while there is an uptick in ROI. Sources of Investment Income (MB) • Investment yield for 3Q19 came to 4.24% vs. 4.17% for 9M19 • 9M19 accounting ROI came to 4.56%, a slight +2% yoy decline from 4.63% in 9M19 due to lower dividend income and real

  30. Slide 30: CAR: improved from 260% in 4Q18 and 289% to 308%

    CAR: improved from 260% in 4Q18 and 289% in the previous quarter to 308% CAR (RBC) Total Capital Required (TCR) 308% 289% 270% 17.7% 252% 252% 260% 257% 260% REITs 240% 21.9% Equity Risk 8.4% Interest Rate Risk 23.9% Credit Risk 26.3% Insurance Risk 2016 2017 2018 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 LI Co

  31. Slide 31: Agenda

    Agenda 1 3Q19 and 9M19 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L 3 Outlook by CEO 4 Q&A 11/13/2019 © Bangkok Life Assurance 31

  32. Slide 32: 3Q19 & 9M19 Performance Summary

    3Q19 & 9M19 Performance Summary Million Baht 3Q19 % TNP 3Q18 % TNP YoY 9M19 % TNP 9M18 % TNP YoY First year premium 1,948 20% 1,726 15% 13% 4,670 18% 6,496 20% -28% Renewal premium 7,930 83% 10,023 87% -21% 22,811 87% 26,383 83% -14% Q319 • FYP +13% REIN&UPR (340) -4% (254) -2% 34% (1,142) -4% (1,08

  33. Slide 33: Agenda

    Agenda 1 3Q19 and 9M19 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L 3 Outlook by CEO 4 Q&A 11/13/2019 © Bangkok Life Assurance 33

  34. Slide 34: Distribution – branch opening, branch visit and FA seminar

    1 Distribution – branch opening, branch visit and FA seminar 11/13/2019 © Bangkok Life Assurance 34

  35. Slide 35: Branding – SMART hospital awards, Thailand top corporate branding, and CSR projects

    2 Branding – SMART hospital awards, Thailand top corporate branding, and CSR projects 11/13/2019 © Bangkok Life Assurance 35

  36. Slide 36: Outlook

    Outlook We believe that sales from Bancassurance channel has bottom out. We’re seeing positive outlook going forward Positive trend in agency channel FYP and recruitment after new structure is in place Promising outlook in business with new partnerships. 11/13/2019 © Bangkok Life Assurance 36

  37. Slide 37: Agenda

    Agenda 1 3Q19 and 9M19 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L 3 Outlook by CEO 4 Q&A 11/13/2019 © Bangkok Life Assurance 37

  38. Slide 38: For further information & enquiries, please contact Investor Relations

    For further information & enquiries, please contact our Investor Relations at ir@bangkoklife.com +66 (0) 2777-8846

  39. Slide 39: APPENDIX

    APPENDIX © Bangkok Life Assurance

  40. Slide 40: Statement of financial positions

    Statement of financial positions 30 Sep 19 31 Dec 18 Inc / Dec MB % MB % MB % Assets Cash and cash equivalents 9,571 3% 9,826 3% (254) -3% ASSETS Investment assets 311,828 94% 304,221 94% 7,606 3% Short-term cash Other assets 11,189 3% 10,531 3% 658 6% decrease from Total assets 332,588 100% 324,578

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