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

Bangkok Life Assurance Public — Q3 2020 Earnings Presentation

26 slides from Bangkok Life Assurance Public's earnings presentation, Nov 12, 2020

  1. Slide 1: 3Q20 Results Presentation

    3Q20 Results Presentation Investors and Analyst update 12 Nov 2020 © Bangkok Life Assurance

  2. Slide 2: Agenda

    Agenda 1 3Q20 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Outlook 4 Q&A 11/12/2020 © Bangkok Life Assurance 2

  3. Slide 3: Synopsis of performance in 3Q20

    Synopsis of performance in 3Q20 • 3Q20 profit: Net profit -59% YoY mainly due to a decline in realized gain on investment. Excluding this item, net profit would have increased YoY. • Overview of the performance: FYP +54%. By distribution channel: • Bancassurance: FYP +135% YoY due to tactical produc

  4. Slide 4: Synopsis of performance in 9M20

    Synopsis of performance in 9M20 • 9M20 profit: Net profit -61% YoY mainly due to increasing PAD reserve from 4% to 5%. • Overview of the performance: FYP +15%. By distribution channel: • Bancassurance: FYP +31% YoY due to tactical product and gain 1st campaign • Agent: FYP -18% YoY due to high base

  5. Slide 5: Agenda

    Agenda 1 3Q20 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Outlook 4 Q&A 11/12/2020 © Bangkok Life Assurance 5

  6. Slide 6: 3Q20: FYP +54% to 8% market share driven by Banca

    3Q20: FYP +54% to 8% market share driven by Banca RYP -14% from fully-paid policies as expected New Business Renewal Total Financial Premium Premium Premium Highlight +54% -14% -1% Unit : Million Baht 7,930 3,005 9,878 9,803 6,798 69% 1,948 60% 39% 50% 59% 61% ROI 3.54% Bancassurance 86% Agent Chann

  7. Slide 7: 9M20: FYP +15% from Banca, better than industry

    9M20: FYP +15% from Banca, better than industry. RYP -6% from fully-paid policies as expected New Business Renewal Total Financial Premium Premium Premium Highlight +15% -6% -4% Unit : Million Baht 22,811 27,481 26,699 ROI 4.33% 5,355 21,344 4,670 Inv. Yield 3.83% 69% 61% 70% 58% 39% 58% 59% 57% Ban

  8. Slide 8: 3Q20 FYP from Bancassurance +135% due to tactical products and gain 1st campaign

    3Q20 FYP from Bancassurance +135% due to tactical products and gain 1st campaign “Other” product mix declined from changing TISCO’s on-shelf product New Business Premium New Business Premium Product Mix Bancassurance Bancassurance Unit : Million Baht +54% +135% 9% 2,597 23% 3,005 Others 3% Whole Lif

  9. Slide 9: 9M20 FYP from Bancassurance +31% due to tactical products and gain 1st campaign

    9M20 FYP from Bancassurance +31% due to tactical products and gain 1st campaign New Business Premium New Business Premium Product Mix Bancassurance Bancassurance Unit : Million Baht +15% +31% 1% 0% 3,747 11% 5,355 16% 3% 4,670 Others 2,856 33% Whole Life & Term 61% 70% MRTA Endowment 83% 53% 31% 22%

  10. Slide 10: Agency 3Q20 FYP -47% due to high base from discont. products

    Agency 3Q20 FYP -47% due to high base from discont. products Good product mix with no filler New Business Premium New Business Premium Product Mix Agent Channel Agent Channel Unit : Million Baht +54% -47% 3,005 100 0% 0% 685 90 80 42% Filler 1,948 70 Whole Life & Term 63% 86% Pension 360 60 3% 50 En

  11. Slide 11: Agency 9M20 FYP -18% high base from discontinued products

    Agency 9M20 FYP -18% high base from discontinued products Good product mix & increasing riders attachment ratio New Business Premium New Business Premium Product Mix Agent Channel Agent Channel Unit : Million Baht +15% -18% 5,355 1,457 0% 1% 4,670 1,201 Filler Whole Life & Term 51% Pension 61% 70% 6

  12. Slide 12: Other: 9M20 FYP saw a strong growth driven by group and direct marketing

    Other: 9M20 FYP saw a strong growth driven by group and direct marketing 9M20 FYP from Group channel growth >10% 9M20 FYP from Direct Marketing growth >10% YoY YoY 9M20 FYP from Online slightly decreases 9M20 FYP from Partnership was below expectation due to slower ramp up and Covid-19 11/12/2020 ©

  13. Slide 13: Agenda

    Agenda 1 3Q2020 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Outlook 4 Q&A 11/12/2020 © Bangkok Life Assurance 27

  14. Slide 14: Investment asset allocation saw a tilt towards safe asset

    Investment asset allocation saw a tilt towards safe asset while contribution from risky assets declined Asset Class 4Q19 3Q20 Remark Increase temporarily to match benefits payment in 4Q20 Short-term Investment 4.1% 4.8% but down from 6.4% in the previous quarter Bond 42.9% 47.2% For fixed income, in

  15. Slide 15: 3Q20 investment income -32% YoY, mainly from realized gain

    3Q20 investment income -32% YoY, mainly from realized gain. Investment yield decline from lower fixed income yield & tilt to safer assets. • Investment income in 3Q20 -32% YoY, -12% QoQ. The YoY drop is mainly from the timing of realized gain Investment Income (unit: MB) which peaked in 3Q19 while t

  16. Slide 16: CAR decreased from 275% in the previous quarter to 263%

    CAR decreased from 275% in the previous quarter to 263% CAR (RBC) Total Capital Required (TCR) 350% 1.7% 314% Operation Risk 13.7% 300% 266% 275% 263% REITs 250% 31.4% 200% Equity Risk 8.1% 150% Interest Rate Risk 100% 22.6% Specific Risk 50% 4.2% 15.4% Credit Risk 0% Insurance Risk 4Q19 1Q20 2Q20 3

  17. Slide 17: Agenda

    Agenda 1 3Q20 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Outlook 4 Q&A 11/12/2020 © Bangkok Life Assurance 31

  18. Slide 18: Statement of financial positions

    Statement of financial positions 30 Sep 20 31 Dec 19 Inc / Dec MB % MB % MB % ASSETS increase 9,165 MB Assets Total assets increase in 2020 due to Cash and cash equivalents 9,122 3% 13,442 4% (4,320) -32% increasing of investment asset. Investment assets 322,448 94% 311,375 93% 11,073 4% Other asset

  19. Slide 19: 3Q20 Financial Summary

    3Q20 Financial Summary Million Baht 3Q/20 % TNP 3Q/19 % TNP %YoY 9M/20 % TNP 9M/19 % TNP %YoY Q3’20 First year premium 3,005 31% 1,948 20% 54% 5,355 21% 4,670 18% 15% Net income Renewal premium 6,798 70% 7,930 83% -14% 21,344 83% 22,811 87% -6% decrease 59%. FYP increase 54% REIN&UPR (60) -1% (340)

  20. Slide 20: Agenda

    Agenda 1 3Q20 performance summary Key Highlights 2 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Outlook by CEO 4 Q&A 11/12/2020 © Bangkok Life Assurance 35

  21. Slide 21: Outlook by CEO

    OUTLOOK BY CEO © Bangkok Life Assurance

  22. Slide 22: Focusing on key aspects for sustainable growth

    Focusing on 5 key aspects for sustainable growth For sustainable growth that benefits every stakeholder What we need to do… 1 Channel 2 Product 3 Branding 4 Customer 5 Digital • Perform better • Focus on • Increase brand • Customer- • Digital platforms than industry recapture awareness centric and f

  23. Slide 23: First insurer using NDID in online sale

    First insurer using NDID in online sale © Bangkok Life Assurance 37

  24. Slide 24: Awards assuring our strength…

    Awards assuring our strength… 1 2 3 11/12/2020 © Bangkok Life Assurance 38

  25. Slide 25: Introduction of our new home

    Introduction of our new home 11/12/2020 © Bangkok Life Assurance 39

  26. Slide 26: ® NsvinwUs:nuGsc1

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