Sbi Life Insurance Co. Ltd. · NSE:SBILIFE
Sbi Life Insurance — Q1 FY21 Earnings Presentation
34 slides from Sbi Life Insurance's earnings presentation, June 2020
Slide 1: Financial Performance Update – June 2020
Financial SBI LIFE INSURANCE Performance Update – June 2020 I M M U N I T Y
Slide 2: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 2
Slide 3: Resilient business model creating long term value
Resilient business model creating long term value Well positioned to maintain steady growth and long term consistent returns High quality Geographically diversified Strong capital Digital enablement distribution Network customer base position 190,696 14 lakhs + 239% 97% Trained insurance Individual
Slide 4: Key Performance Indicators
Key Performance Indicators Prudent approach to counter post pandemic slump – “New Normal” ` in billion Revenue Profitability New Business Premium Renewal Premium Profit after Tax ` 30.6 (-3% Y-o-Y) ` 45.9 (30% Y-o-Y) ` 3.91 (5% Y-o-Y) CAGR 10% CAGR 25% CAGR 13% New Business APE Gross Written Premium
Slide 5: Premium
Premium Despite adversities gaining momentum in new business collection, Strong growth in renewal collection ` in billion GWP 253.5 329.9 406.3 66.9 76.4 14% Positive momentum on month on month basis 37.0 240.4 45.9 35.4 30% 192.0 20.6 22.0 18.9 143.9 53.5 12.8 41.6 17.2 11.4 25.6 34% 12.5 6.9 96.4
Slide 6: Product portfolio
Product portfolio Continued progress across all key customer segments NBP Individual NBP ` in billion Protection 5% 12% 13% 14% 10% 1% 4% 5% 6% 6% 26% 49% 42% 56% 53% 59% 73% 76% 72% 70% 70% 26% 34% 49% 44% 32% 3% 15% 6% 18% 19% 24% 18% 13% 7% 9% 4% 10% 15% 10% FY 18 FY 19 FY 20 Q1 FY 20 Q1 FY 21 FY
Slide 7: Distribution strength
Distribution strength Quality and scale of multichannel distribution platforms enabling wider presence NBP ` in billion Productivity per Branch1 15 lacs 109.7 137.9 165.9 31.5 30.6 12% 15% NBP – Protection Share 18% (21%) 20% 25% 25% 21% 45% 20% 18% Bancassurance NBP – Annuity Share 7% (5%) 14% Tick
Slide 8: Cost efficiency and profitability
Cost efficiency and profitability Maintaining high levels of cost efficiencies leading to growing profitability ` in billion Cost ratios1 Profit after Tax Total Cost Ratio 11.2% 10.5% 9.9% 11.2% 10.1% Net-worth 65.3 75.8 87.4 79.4 93.1 100% 7.3% 7.0% 90% 6.8% 6.3% 5.9% 80% 70% 4.4% 4.2% 60% 4.0% 3.8
Slide 9: Value of New Business (VoNB) Movement
Value of New Business (VoNB) Movement ` in billion VoNB margin growth of 80 bps from 17.9% to 18.7% VoNB 17.9% - 6.2% (1.2%) (4.2%) 18.7% Margin1 332 78 (15) 237 (54) (105) Opening VoNB as on Impact of Business New Business Mix & Change in Operating Change in Economic Closing VoNB as on Q1 FY 20 Vol
Slide 10: Customer retention and satisfaction
Customer retention and satisfaction Deeper relationship with customers through quality underwriting and strong sales ethos Persistency1 86.1% 85.9% 85.4% 78.5% 76.8% 78.4% 71.6% 71.2% 71.2% 67.7% 67.3% 66.3% 59.9% 61.2% 56.8% 13th Month 25th Month 37th Month 49th Month 61st Month FY 20 Q1 FY 20 Q1 F
Slide 11: Asset under Management
Asset under Management Continue to be one of the top private player in terms of AUM AuM – Linked | Non Linked Composition of Asset under Management ` in billion 1,162.6 1,410.2 1,603.6 1,753.5 Equity 3% 3% Growth of 19% in AUM vis-à-vis 24% Government Q1 FY 20 89:11 53% 89:11 51% 89:11 51% 88:12 50%
Slide 12: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 12
Slide 13: COVID-19 - Update
COVID-19 - Update Business Continuity Plan Identified immediate significant challenges to alter operations based on advisories issued by government Customers COVID questionnaire bitly SMS to customers on a daily basis; Claim submission through website; Cybersecurity Assistance to customers impacted
Slide 14: Responding to COVID-19
Responding to COVID-19 Measures Taken Alternate Sales Process for New business Easing of customer on-boarding Created an entirely new process for concluding a new sale Providing assistance to pay premium by providing a bitly remotely by modifying the mobile application link in SMS to ease the on-boa
Slide 15: Key Focus Areas
Key Focus Areas Disciplined Customer Operational Business Focus Engagement Efficiencies Digital Capabilities Enhancing the core - Use of analytics - Leveraging Best in Harnessing technology Widespread enabling better class cost ratio in strengthening distribution network customer engagement benefits
Slide 16: Digital Quotient: Where do we stand?
Digital Quotient: Where do we stand? 60k+ active users 51k+ app 3600 overview 2 lac+ proposals downloads Empowering Tablet based Digitization of Business performance Provides access of key Distributors application to sell policy proposal filling form & trends for partners business data to the adviso
Slide 17: ESG
ESG E S G 381,900 Number of policies issued in rural areas Environment Social Governance • Corporate office building is a • Building insurance awareness • Independent diversified Board, 100+ Green Building, certified by Indian & providing insurance solutions various committees headed by Green Buildi
Slide 18: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 18
Slide 19: 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 (2019 %) Composition of Population2 Share of urban population3 7% 8% 10% 13% 40.1% 31% 34.9% 34% 30.9% 6.1 37% 40% 27.7% 4.2 28% 28% 26% 24% 2.3 1.3 1.4 1.1 0.7 35%
Slide 20: 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 – 20191 Protection gap highest amongst peers2 5.96% 5.84% • 10th largest life insurance market 92% 88% 85% worldwide and 5th la
Slide 21: Industry Composition
Industry Composition Product mix and Channel mix Product portfolio1 Industry Private Players 12% 13% 13% 11% Higher ULIP contribution 42% 38% 34% 44% among private players, though traditional 88% 87% 87% 89% 58% 62% 66% products forms the major 56% share of new business FY 2017 FY 2018 FY 2019 FY 20
Slide 22: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 22
Slide 23: Annualised Premium Equivalent (APE)
Annualised Premium Equivalent (APE) APE Product mix and Channel mix ` in billion Product portfolio Mix Segment FY18 FY 19 FY 20 Q1 FY 20 Q1 FY 21 (Q1 FY 21) Individual Savings 78.5 87.2 93.9 15.5 9.5 75% - Par 20.9 18.1 11.7 2.7 1.1 9% - Non Par 0.7 0.4 7.4 0.5 2.3 18% - ULIP 56.9 68.6 74.8 12.4 6.1
Slide 24: Individual Annualised Premium Equivalent (APE)
Individual Annualised Premium Equivalent (APE) Individual APE – Channel Mix Segment wise ` in billion Mix Channel Segment FY18 FY 19 FY 20 Q1 FY 20 Q1 FY 21 (Q1 FY21) Participating 13.2 9.9 4.6 1.3 0.3 3% Non Participating 0.9 3.5 9.1 1.3 1.9 19% Bancassurance Unit Linked 38.9 49.0 53.4 8.7 4.3 42%
Slide 25: Persistency - Regular Premium
Persistency - Regular Premium Quality Underwriting and Customer Retention Persistency1 83.7% 84.5% 82.6% 76.9% 74.9% 76.3% 68.7% 68.8% 66.5% 61.7% 61.4% 60.9% 50.0% 50.0% 47.7% 13th Month 25th Month 37th Month 49th Month 61st Month FY 20 Q1 FY 20 Q1 FY 21 1. The persistency ratios are calculated as
Slide 26: Sensitivity Analysis
Sensitivity Analysis Change in VoNB % Change in VoNB % Scenario Q1 FY21 FY20 Reference Rate +100 bps 2.4% 1.7% Reference Rate -100 bps (2.8%) (1.8%) Decrease in Equity Value 10% (0.5%) 0.0% On effective tax rate basis Proportionate change in lapse rate +10% (4.5%) (5.8%) Proportionate change in laps
Slide 27: Customer Age and Policy Term
Customer Age and Policy Term1 Average customer age in years Average policy term in years Par 36 Par 15 Protection 36 Protection 15 ULIP 43 ULIP 12 Non Par - Others 37 Non Par - Others 15 Overall 39 Overall 14 27 1. Age and term for individual products for Q1 FY 21.
Slide 28: Awards
Awards Awarded ‘Best Life Insurance Company Received the Smart Life Insurance Company Awarded 'Life Insurer of the Year 2019' by 2019’ - Emerging Asia Insurance Awards at ET Insurance Summit 2019 by The Economic Federation of Indian Chambers of Commerce (FICCI) by Indian Chamber of Commerce (ICC) Ti
Slide 29: Revenue and Profit & Loss A/c
Revenue and Profit & Loss A/c ` in billion Particulars FY 19 FY 20 Q1 FY 20 Q1 FY 21 Premium earned 329.9 406.3 66.9 76.4 Premium on reinsurance ceded (1.0) (3.1) (0.4) (0.6) Net premium earned 328.9 403.2 66.6 75.9 Investment income1 116.0 33.4 31.3 88.1 Other income 0.8 0.5 0.1 0.1 Total income (A
Slide 30: Balance Sheet
Balance Sheet ` in billion Particulars FY 19 FY 20 Q1 FY 21 SOURCES OF FUNDS Share Capital 10.0 10.0 10.0 Reserves and Surplus 64.6 78.8 82.8 Credit/(Debit) Fair Value Change Account 1.2 (1.4) 0.4 Sub-Total 75.8 87.4 93.1 Credit/(Debit) Fair Value Change Account 10.6 (15.9) (1.4) Policy Liabilities
Slide 31: 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 32: 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 33: 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 34: 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 34