Sbi Life Insurance Co. Ltd. · NSE:SBILIFE
Sbi Life Insurance — H1 FY20 Earnings Presentation
29 slides from Sbi Life Insurance's earnings presentation, November 2019
Slide 1: Performance Update – H1 FY20
Protecting Responsibilities. Performance Update – H1 FY20 Multiplying Happiness.
Slide 2: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 2
Slide 3: Key Performance Indicators
Key Performance Indicators Driving long term growth across all key metrics ` in billion Growth in Revenue Profitability & Return Wide Scale of Operations New Business Premium New Business APE Value of New Business Number of offices 78.2 46.7 9.4 923 40% Y-o-Y 26% Y-o-Y CAGR 35% CAGR 18% 33% Y-o-Y 75
Slide 4: Premium and market share
Premium and market share Maintained growth in new business premium backed by strong growth in renewal premium ` in billion GWP 210.2 253.5 329.9 124.4 169.4 36% Market Share - IRP Year Private Industry FY 17 20.7% 11.2% FY 18 21.8% 12.3% 192.0 91.2 33% FY 19 22.3% 12.9% 143.9 68.7 H1 FY 19 21.9% 12.
Slide 5: Product portfolio
Product portfolio Diversified product portfolio – Full suite of product offering catering to all customer segments NBP Individual NBP ` in billion Protection 5% 5% 12% 11% 12% 1% 1% 4% 3% 5% 51% 50% 43% 56% 53% 73% 76% 74% 69% 79% 39% 26% 34% 36% 50% 3% 5% 20% 4% 6% 19% 17% 24% 18% 21% 11% 13% 14% 7
Slide 6: Tapping profitable opportunities
Tapping profitable opportunities Focus on protection and annuity yielding results ` in billion Protection Annuity NOP 1,42,766 74% 1,009 4,019 298% NOP 81,866 1.0 158% 6.9 43% 4.8 4.0 387% 0.4 2.4 133% 0.8 1.0 H1 FY 19 H1 FY 20 H1 FY 19 H1 FY 20 Individual Group Individual Group Protection business
Slide 7: Distribution strength
Distribution strength Expanded reach with distinct competitive advantage NBP ` in billion 30 lacs 101.4 109.7 137.9 55.7 78.2 Productivity per branch1 (23 lacs) 12% 15% 18% 22,000+ 25% 25% 91% NBP – Protection Share 18% (15%) SBI branches 25% 21% 21% 22% 18% 21% NBP – Annuity Share 6% (1%) Bancassur
Slide 8: Cost efficiency and profitability
Cost efficiency and profitability Low cost ratios and growing profitability ` in billion Cost ratios1 Profit after Tax Total Cost Ratio 11.6% 11.2% 10.5% 12.0% 10.4% Net-worth 55.5 65.3 75.8 70.9 80.7 100% 7.8% 7.8% 90% 6.8% 80% 6.4% 6.5% 70% 60% 0.7# 4.4% 4.1% 4.1% 50% 3.7% 3.9% 40% 13.3 11.5 6.0 3
Slide 9: Customer retention and satisfaction
Customer retention and satisfaction Deeper relationship with customers through quality underwriting and strong sales ethos Persistency1 85.1% 83.2% 85.8% 76.7% 74.8% 77.4% 71.4% 71.0% 71.0% 66.4% 64.4% 67.9% 57.2% 57.5% 57.5% 13th Month 25th Month 37th Month 49th Month 61st Month FY 19 H1 FY 19 H1 F
Slide 10: Asset under Management
Asset under Management Crossed 1.5 trillion mark during the quarter AuM – Linked | Non Linked Composition of Asset under Management ` in billion 977.4 1,162.6 1,410.2 1,547.6 Equity Growth of 23% in AUM vis-à-vis 4%4% Government securities H1 FY 19 90:10 89:11 53% 89:11 51% 88:12 50% 23% 54% Fixed d
Slide 11: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 11
Slide 12: Key Focus Areas
Key Focus Areas Geographical Spread Cost Effective • Widespread network of distributors • One of the lowest Opex to GWP ratios in the industry • Continuous engagement and collaboration with new partners • Continuous renewals and improving persistency help in maintaining low costs Customer First Appr
Slide 13: Digital Initiatives – Transforming customer experience
Digital Initiatives – Transforming customer experience Tablet based application to sell policy - 1 lac+ active users • Drive productivity – Distributors as well as Digitization of proposal filling form - 7 lacs+ proposals employees Empowering Distributors SAARTHI App – 3600 overview of business perf
Slide 14: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 14
Slide 15: India Life Insurance - Structural Growth Drivers in Place
India Life Insurance - Structural Growth Drivers in Place Strong Demographic Tailwinds Supporting India Growth Story World GDP Growth1 (2018 %) Composition of Population2 Share of urban population3 7% 8% 10% 13% 7.0 40.1% 6.5 31% 34% 34.9% 37% 40% 30.9% 27.7% 28% 28% 2.8 26% 24% 1.5 1.4 1.3 1.1 0.8
Slide 16: Life Insurance – Significant Under Penetration versus other Markets
Life Insurance – Significant Under Penetration versus other Markets Share of Life Insurance in Savings expected to Rise Underpenetrated Insurance Market Premium as % of GDP – 20181 Protection gap highest amongst peers2 6.22% 6.12% 92% • 10th largest life insurance market 88% 85% 78% worldwide and 5t
Slide 17: Industry Composition
Industry Composition Product mix and Channel mix Product portfolio1 Industry Private Players Higher ULIP contribution 12% 13% 13% 42% 38% among private players, 44% though traditional 88% 87% 87% products forms the major 58% 56% 62% share of new business FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 20
Slide 18: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 18
Slide 19: Annualised Premium Equivalent (APE)
Annualised Premium Equivalent (APE) APE Product mix and Channel mix ` in billion Product portfolio Y-o-Y Mix Segment FY17 FY18 FY 19 H1 FY 19 H1 FY 20 Growth (H1 FY 20) Individual Savings 59.4 78.5 87.2 33.6 40.3 20% 86% - Par 11.2 20.9 18.1 8.0 5.7 (29%) 12% - Non Par 0.5 0.7 0.4 0.2 3.7 1592% 8% -
Slide 20: Individual Annualised Premium Equivalent (APE)
Individual Annualised Premium Equivalent (APE) Individual APE – Channel Mix Segment wise ` in billion Y-o-Y Mix Channel Segment FY17 FY18 FY 19 H1 FY 19 H1 FY 20 Growth (H1 FY 20) Participating 5.3 13.2 9.9 4.5 2.6 (43%) 6% Non Participating 1.0 0.9 3.5 1.0 4.6 373% 11% Bancassurance Unit Linked 32.
Slide 21: Persistency - Regular Premium
Persistency - Regular Premium Quality Underwriting and Customer Retention Persistency1 83.9% 81.9% 84.0% 74.3% 75.6% 71.0% 66.4% 65.4% 66.8% 60.3% 59.2% 61.9% 47.5% 46.1% 48.6% 13th Month 25th Month 37th Month 49th Month 61st Month FY 19 H1 FY 19 H1 FY 20 1. The persistency ratios are calculated as
Slide 22: Sensitivity Analysis
Sensitivity Analysis Change in EV Change in VoNB Scenario H1 FY20 H1 FY20 Reference Rate +100 bps (3.5%) 0.5% On actual tax Reference Rate -100 bps 3.3% (0.5%) rate basis Decrease in Equity Value 10% (1.2%) 0.0% IEV Proportionate change in lapse rate +10% (1.3%) (6.0%) ` 246.9 bn Proportionate chang
Slide 23: Customer Age and Policy Term
Customer Age and Policy Term1 Customer Profile Average customer age in years Average policy term in years Par 36 Par 13 Protection 36 Protection 13 ULIP 43 ULIP 11 Non Par - Non Par - 39 18 Others Others Overall 39 Overall 12 23 1. Age and term for individual products for H1 FY 20.
Slide 24: Revenue and Profit & Loss A/c
Revenue and Profit & Loss A/c ` in billion Particulars FY 18 FY 19 H1 FY 19 H1 FY 20 Premium earned 253.5 329.9 124.4 169.4 Premium on reinsurance ceded (1.9) (1.0) (0.3) (1.7) Net premium earned 251.6 328.9 124.2 167.7 Investment income1 89.0 116.0 42.9 57.9 Other income 0.8 0.8 0.4 0.2 Total incom
Slide 25: Balance Sheet
Balance Sheet ` in billion Particulars FY18 FY 19 H1 FY 19 H1 FY 20 SOURCES OF FUNDS Share Capital 10.0 10.0 10.0 10.0 Reserves and Surplus 53.7 64.6 59.8 69.6 Credit/(Debit) Fair Value Change Account 1.5 1.2 1.1 1.1 Sub-Total 65.3 75.8 70.9 80.7 Credit/(Debit) Fair Value Change Account 9.4 10.6 8.6
Slide 26: Abbreviations
Abbreviations Term Description Term Description GWP Gross Written Premium NON PAR Non-Participating NBP New Business Premium Opex Operating Expenses (excluding commission) NOP Number of Policies CAGR Compounded Annual Growth Rate APE Annualized Premium Equivalent GDP Gross Domestic Product IRP Indiv
Slide 27: Glossary
Glossary New Business APE: The sum of 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
Slide 28: 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 29: Thank you
Thank you Investor Relations Contact: SBI Life Insurance Co Ltd Fifth Floor, Natraj, M V Road & Western Expressway Highway , Andheri (E), Mumbai Dial - +91 22 6191 0281/ 0399 Email – investorrelations@sbilife.co.in Website – www.sbilife.co.in 29