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

Bangkok Life Assurance Public — Investor Presentation (2011)

11 slides from Bangkok Life Assurance Public's investor presentation, 2011

  1. Slide 1: Embedded value (EV)

    LOGO Embedded value (EV)

  2. Slide 2: Embedded Value of the business: VIF + ANW

    LOGO Embedded Value (EV) of the business is calculate as the sum of two items: EV = VIF + ANW When VIF is the discounted Value of projected future distributable earnings of the business In-Force ANW is the Adjusted Net Worth or the excess of market value of assets over statutory liabilities. ANW = S

  3. Slide 3: Components of an Embedded value

    LOGO Components of an Embedded value Embedded Discounted Value of AddYour Add Value Your Text Text of In- Add Your Text value distributable earnings from Force business In-Force business Excess of market value of Adjusted net assets over statutory liabilities worth Embedded value = Value of In-Force

  4. Slide 4: VIF

    LOGO VIF - Benefit payments (claims, surrenders and maturities) + Premium income due - Expense (including + Investment income VIF commission) - Increase in statutory reserves - Income Tax - Cost of holding required capital(CoC) Value of in-force covered business (VIF) is defined as the discounted va

  5. Slide 5: Cost of holding required capital

    LOGO Cost of holding required capital (CoC) is the additional amount of capital above the statutory reserves, cannot be distributed to shareholders. 5 Embedded value (EV)

  6. Slide 6: Key assumptions

    LOGO Key assumptions 1. Risk discount rate The discount rates are 9%, 10% and 11% have been assumed in each future year as the discount rate for the in-force life insurance business. 2. Investment returns Future investment returns have been assumed to be 5% for investment fund. 3. Taxation Income ta

  7. Slide 7: Component of Appraisal Value and Embedded Value

    LOGO Component of Appraisal Value and Embedded Value (unit : MB) Present Value of December 31, 2010 December 31, 2009 Discount rate 10% 10% Adjusted Net Worth 14,261 8,870 Present Value of future profits after tax 9,563 7,118 Cost of Capital -1,990 -1,540 VIF after cost of capital 7,573 5,578 Embedd

  8. Slide 8: Summary of Embedded Value and Value of New Business Results

    LOGO Summary of Embedded Value and Value of New Business Results Risk Discount Rate Embedded Value as of 31 December 2010 9% 10% 11% (in millions of Baht) Adjusted Net Worth("ANW") 14,261 14,261 14,261 Present Value of Future Profit ("PVFP") 12,581 12,023 11,519 Corporate Tax ("Tax") 2,568 2,460 2,3

  9. Slide 9: Value of One year New Business Sold in 2010

    LOGO Risk Discount Rate Value of One year New Business Sold in 2010 9% 10% 11% (in millions of Baht) Present Value of Future Profit ("PVFP") 3,416 3,250 3,097 Corporate Tax ("Tax") (820) (783) (748) Cost of Target Required Capital ("CoC") (314) (345) (371) Value of One year New Business 2,283 2,122

  10. Slide 10: EV per Share and VNB per Share sensitivities

    LOGO EV per Share Risk Discount Rate Investment Income 9% 10% 11% 4.75% 17.5 17.0 16.6 5.00% 18.7 18.2 17.7 5.25% 20.0 19.4 18.8 VNB per Share Risk Discount Rate Investment Income 9% 10% 11% 4.75% 1.7 1.6 1.5 5.00% 1.9 1.8 1.6 5.25% 2.1 2.0 1.8 10 Embedded value (EV)

  11. Slide 11: LOGO

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