Sbi Life Insurance Co. Ltd. · NSE:SBILIFE
Sbi Life Insurance — 9M FY21 Earnings Presentation
32 slides from Sbi Life Insurance's earnings presentation, December 2020
Slide 1: SBI Life Insurance Performance Update – 9M FY21
SBI LIFE INSURANCE Performance Update – 9M FY21 F i n a n c i a l Place Your Picture Here I M M U N I T Y Place Your Picture Here Place Your Picture Here
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 Geographically diverse distribution network Stable and Consistently managed – 947 own offices Balance Sheet – Solvency of 2.34 2lacs+ trained insurance personnel Sustainable V
Slide 4: Key Performance Indicators
Key Performance Indicators Prudent approach to sustainable recovery counter post pandemic slump – “New Normal” ` in billion New Business Premium New Business APE Profit after Tax ` 144.4 ` ` 74.8 ` ` 9.2 (13% Y-o-Y) (-7% Y-o-Y) (4% Y-o-Y) CAGR 16% CAGR 12% Renewal Premium Individual Rated Premium Va
Slide 5: Premium
Premium Positive momentum in new business collection; Maintaining strong growth in renewals ` in billion GWP 253.5 329.9 406.3 287.0 346.1 21% Strong momentum compared to previous Quarters 76.4 130.9 138.8 240.4 201.7 192.0 159.1 27% 143.9 71.5 84.4 53.5 63.1 41.6 43.9 44% 25.6 112.4 45.8 84.1 96.4
Slide 6: Product portfolio
Product portfolio Continued progress across all key customer segments NBP Individual NBP ` in billion Protection 5% 12% 13% 11% 11% 1% 4% 5% 4% 6% 38% 56% 53% 49% 47% 73% 72% 71% 67% 76% 26% 34% 44% 46% 58% 3% 18% 25% 6% 18% 19% 7% 24% 18% 13% 7% 5% 10% 11% 8% FY 18 FY 19 FY 20 9M FY 20 9M FY 21 FY
Slide 7: Distribution strength
Distribution strength Geographically diversified unparalleled distribution network ` in billion NBP 109.7 137.9 165.9 127.9 144.4 24,000+ 12% 15% 20% 21% NBP – Protection Share 17% (17%) SBI branches 30% 25% 21% 20% 19% 169,000+ 15% NBP – Annuity Share 5% (6%) agents Bancassurance Ticket size2 82k (
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% 10.0% 8.5% Net-worth 65.3 75.8 87.4 84.8 101.3 100% 90% 6.6% 6.3% 5.9% 6.0% 80% 70% 5.1% 4.6% 60% 4.2% 4.0% 4.0
Slide 9: Value of New Business (VoNB) Movement
Value of New Business (VoNB) Movement ` in billion VoNB margin growth of 100 bps from 18.3% to 19.3% VoNB 18.3% - 3.7% (1.1%) (1.5%) 19.3% Margin1 2.8 14.7 14.5 (0.9) (1.1) (1.0) Opening VoNB as on Q3 Impact of Business Volume New Business Mix & Change in Operating Change in Economic Closing VoNB as
Slide 10: Customer retention and satisfaction
Customer retention and satisfaction Deeper relationship with customers through quality underwriting and strong sales ethos Persistency1 86.1% 85.7% 86.2% 78.5% 77.7% 79.0% 71.6% 71.1% 72.9% 67.3% 67.4% 66.9% 59.9% 58.5% 61.7% 13th Month 25th Month 37th Month 49th Month 61st Month FY 20 9M FY 20 9M 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 1,163 1,410 1,604 2,095 Equity 4% 3% Growth of 28% in AUM vis-à-vis Government 9M FY 20 53% 51% 51% 48% 27% 89:11 89:11 89:11 87:13 securit
Slide 12: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 12
Slide 13: 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 14: Digital Quotient: Leading to greater shared outcomes
Digital Quotient: Leading to greater shared outcomes 1 lac+ active users 1.3 lac+ app 3600 overview 12.7 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 bu
Slide 15: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 15
Slide 16: 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 17: 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 18: Industry Composition
Industry Composition Product mix and Channel mix Product portfolio1 Industry Private Players 13% 13% 11% 7% Higher ULIP contribution 34% 25% 44% 38% among private players, 93% though traditional 87% 87% 89% 66% 75% 56% 62% products forms the major share of new business FY 2018 FY 2019 FY 2020 H1 FY2
Slide 19: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 19
Slide 20: 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 9M FY 20 9M FY 21 (9M FY 21) Individual Savings 78.5 87.2 93.9 70.7 61.2 82% - Par 20.9 18.1 11.7 9.1 6.5 9% - Non Par 0.7 0.4 7.4 5.6 8.3 11% - ULIP 56.9 68.6 74.8 55.9 46
Slide 21: 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 9M FY 20 9M FY 21 (9M FY21) Participating 13.2 9.9 4.6 3.8 2.0 3% Non Participating 0.9 3.5 9.1 6.8 9.4 14% Bancassurance Unit Linked 38.9 49.0 53.4 40.2 34.3 52
Slide 22: Sensitivity Analysis
Sensitivity Analysis Change in VoNB % Scenario 9M FY21 Reference Rate +100 bps (0.4%) On effective Reference Rate -100 bps 0.1% tax rate basis Decrease in Equity Value 10% (0.3%) Proportionate change in lapse rate +10% (4.3%) VoNB Proportionate change in lapse rate -10% 5.6% ` 15.6 bn Mortality / Mo
Slide 23: Persistency - Regular Premium
Persistency - Regular Premium Quality Underwriting and Customer Retention Persistency1 83.7% 83.5% 83.4% 76.9% 76.0% 75.9% 70.8% 68.7% 67.5% 61.7% 61.4% 63.0% 50.0% 49.4% 49.1% 13th Month 25th Month 37th Month 49th Month 61st Month FY 20 9M FY 20 9M FY 21 1. The persistency ratios are calculated as
Slide 24: 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 37 Protection 14 ULIP 43 ULIP 12 Non Par - Others 39 Non Par - Others 18 Overall 40 Overall 14 24 1. Age and term for individual products for 9M FY 21.
Slide 25: 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 26: Financial Immunity
Financial Immunity Understanding Consumer’s attitude towards financial security1 Consumer profile 55 % 45 % 42 38 Average monthly personal 20 income ~ 62k 75% 25% 25-35 36-45 75% 87% 67% School/ College Graduates Post Graduates years years Gender Age Durable ownership Level of Education Personal Mon
Slide 27: Revenue and Profit & Loss A/c
Revenue and Profit & Loss A/c ` in billion Particulars FY 19 FY 20 9M FY 20 9M FY 21 Premium earned 329.9 406.3 287.0 346.1 Premium on reinsurance ceded (1.0) (3.1) (2.4) (3.9) Net premium earned 328.9 403.2 284.6 342.1 Investment income1 116.0 33.4 99.8 275.8 Other income 0.8 0.5 0.4 0.3 Total inco
Slide 28: Balance Sheet
Balance Sheet ` in billion Particulars FY 19 FY 20 9M FY 20 9M FY 21 SOURCES OF FUNDS Share Capital 10.0 10.0 10.0 10.0 Reserves and Surplus 64.6 78.8 73.5 88.1 Credit/(Debit) Fair Value Change Account 1.2 (1.4) 1.3 3.2 Sub-Total 75.8 87.4 84.9 101.3 Credit/(Debit) Fair Value Change Account 10.6 (15
Slide 29: 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 30: 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 31: 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 32: 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 32