Sbi Life Insurance Co. Ltd. · NSE:SBILIFE
Sbi Life Insurance — Q1 FY2019 Earnings Presentation
29 slides from Sbi Life Insurance's earnings presentation, July 2018
Slide 1: Performance update – Q1 FY2019
Performance update – Q1 FY2019 Investor Presentation | July 2018
Slide 2: Performance update
Performance update 2
Slide 3: Key performance metrics
Key performance metrics ` in billion Growth Q1 FY18 Q1 FY19 FY18 3 Yr CAGR Rate New Business Premium 18.0 20.8 15% 109.7 26% New Business APE 12.8 13.1 2% 85.4 33% Scale and Individual Rated Premium 11.1 12.1 9% 77.9 36% Growth Renewal Premium 19.9 26.8 35% 143.9 25% Gross Written Premium 37.9 47.6
Slide 4: Premium and market share
Premium and market share Continued growth in new business premium backed by strong growth in Individual Renewal Premium ` in billion Gross Written Premium 158.3 210.2 253.5 37.9 47.6 26% 26.8 35% 143.9 19.9 108.7 87.2 7.5 25.6 5.8 29% 36.8 21.3 64.7 84.1 12.2 13.3 9% 49.8 FY 16 FY 17 FY 18 Q1 FY 18
Slide 5: Product portfolio
Product portfolio Diversified product portfolio – Increase in share of protection business Total NBP Individual NBP Protection 9% 5% 5% 6% 10 % 3% 1% 1% 1% 2% Share 45% 51% 50% 46% 56% 64% 79% 73% 73% 72% 34% 38% 6% 39% 26% 35% 3% 4% 4% 29% 4% 21% 19% 17% 24% 23% 24% 11% 15% 16% FY 16 FY 17 FY 18 Q1
Slide 6: Distribution strength
Distribution strength Multi-channel distribution ` in billion NBP basis IRP basis 71.1 101.4 109.7 18.0 20.8 42.8 59.4 77.9 11.1 12.1 18% 12% 12% 15% 54% 1% 1% 1% 1% 1% 25% 25% 25% 38% 34% 31% 33% 33% 27% 23% 8% 11% 22% 62% 64% 61% 11% 65% 68% 67% 66% 7% 54% 53% 61% FY 16 FY 17 FY 18 Q1 FY 18 Q1 FY
Slide 7: Cost efficiency and profitability
Cost efficiency and profitability Cost ratios1 Profit after tax ` in billion RoE 19.6% 18.6% 19.0% 21.9% 21.2% 13.7% 11.6% 11.2% 14.2% 13.8% 13% 9.8% 9.7% 11.50 3.54 9.2% 9.55 3.13 8.61 7.8% 6.8% FY 16 FY 17 FY 18 Q1 FY 18 Q1 FY 19 Robust growth of 13% in profits 4.5% 4.4% Networth & Solvency (%) `
Slide 8: Customer retention and satisfaction
Customer retention and satisfaction Customer retention through quality underwriting Persistency1 83.0% 82.0% 83.7% 75.2% 74.8% 75.1% 70.0% 67.2% 71.2% 63.9% 63.0% 63.4% 64.6% 58.4% 57.0% 13th Month 25th Month 37th Month 49th Month 61st Month FY 18 Q1 FY 18 Q1 FY 19 Customer satisfaction metrics Surr
Slide 9: Asset under Management
Asset under Management Assets under Management growth ` in billion AuM – Linked/Non Linked AuM – Debt/Equity 798.3 977.4 1,162.6 1,202.8 798.3 977.4 1,162.6 1,202.8 23% 23% 93:7 55% 90:10 54% 89:11 53% 90:10 53% 23% 23% 77% 77% 77% 58:42 45% 61:39 46% 65:35 47% 63:37 47% 77% FY 16 FY 17 FY 18 Q1 FY
Slide 10: Strategy
Strategy Growth Drivers Under- Increase in Affluent Protection Rising Driving penetration of Class with rise in Gap Healthcare Digitisation Life Insurance Savings Spending 1 2 3 4 5 Leverage insurance Expansive Customer Diversified industry growth distribution satisfaction and Profitable growth prod
Slide 11: Prolife – Tapping the opportunities
Prolife – Tapping the opportunities Growth Opportunity Inadequate pure 1 Individual Protection protection (term Individual Platform : Nine different products to cater requirements of different customer segments insurance) coverage Innovative protection products – Life stage rebalancing and medical s
Slide 12: Digilife – Digital Reform and Transformation
Digilife – Digital Reform and Transformation Digital Native Customer self-service Future equipped Business Customer engagement Products centers Advisors Operations initiative • “Shop Online” - Use of • Self-service tool for • Advisors equipped with digital • Digitized end-to-end • Increase in number
Slide 13: Professional and Highly Experienced Management
Professional and Highly Experienced Management Independent, Experienced and Diversified Board of Directors Rajnish Kumar, Chairman Ravi Rambabu, Independent Director 41+ years experience in Finance, Audit Experienced Professional Senior Management 38+ years experience in Banking & Financial services
Slide 14: Growth opportunity and industry overview
Growth opportunity and industry overview 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 India 6th largest economy in the World Rising share of India‟s urban population2 GDP in USD trillion1 19.4 40.1% 34.9% 30.9% 27.7% 12.2 4.9 3.7 2.6 2.6 2.6 2.1 2000 2010 2020E 2030E U
Slide 16: Life Insurance – Significant Under Penetration versus other Markets
Life Insurance – Significant Under Penetration versus other Markets Share of Insurance in Savings expected to Rise Underpenetrated Insurance Market1 Premium as % of GDP – 2016 Protection margin highest amongst peers 92% 10th largest life insurance 11.5% 88% 85% market worldwide and 5th 78% largest
Slide 17: Life insurance industry evolution in India
Life insurance industry evolution in India New business performance - industry and private players Revival Phase ` billion Private: 19% CAGR High Growth Phase Growth Stagnation Industry: 20% CAGR 1,938 Private: 19% CAGR Private: -3% CAGR 1,750 Industry:14% CAGR Industry: -3% CAGR 1,387 1,258 1,196 1
Slide 18: Product portfolio and Channel mix
Product portfolio and Channel mix Product portfolio1 Industry Private Players 13% 12% 13% 43% 42% 44% 87% 88% 87% 57% 58% 56% FY 2016 FY 2017 FY 2018 FY 2016 FY 2017 FY 2018 Traditional ULIP Traditional ULIP Higher ULIP contribution among private players, though traditional products forms the major
Slide 19: Annexure
Annexure SBI Life 19 With Us, You're Sure
Slide 20: Annualised Premium Equivalent (APE)
Annualised Premium Equivalent (APE) ` in billion Product portfolio Q-o-Q Mix Segment1 FY16 FY17 FY18 Q1 FY 18 Q1 FY 19 Growth (Q1 FY 19) Individual Savings 43.1 59.4 78.5 11.1 12.0 8% 91% - Par 15.5 11.2 20.9 2.8 3.3 15% 25% - Non Par 0.6 0.5 0.7 0.1 0.1 (14%) 1% - ULIP 26.9 47.7 56.9 8.2 8.6 5% 66%
Slide 21: Customer Age and Policy Term
Customer Age and Policy Term1 Average customer age in years Average policy term in years Par 44 Par 15 Protection 39 Protection 17 ULIP 44 ULIP 11 Non Par - Others 43 Non Par - Others 24 Overall 44 Overall 14 1. Age and term for individual products for Q1 FY 19 21
Slide 22: Geographical presence
Geographical presence ` in billion Individual New Individual New Premium Contribution State / Union Territory Business Policy Business Premium in % Uttar Pradesh 24,272 1.4 10.2% Tamil Nadu 13,772 1.0 7.7% Maharashtra 16,143 1.0 7.4% West Bengal 15,241 0.9 6.6% Gujarat 9,505 0.8 6.3% Karnataka 9,786
Slide 23: Sensitivity Analysis
Sensitivity Analysis Change in VoNB% Change in VoNB% Scenario Q1 FY19 FY18 Reference Rate +100 bps 3% 1% Reference Rate -100 bps (3%) (2%) Decrease in Equity Value 10% - - Proportionate change in lapse rate +10% (6%) (7%) Proportionate change in lapse rate -10% 6% 7% Mortality / Morbidity +10% (7%)
Slide 24: Revenue and Profit & Loss A/c
Revenue and Profit & Loss A/c ` in billion Particulars FY 17 FY 18 Q1 FY 18 Q1 FY 19 Premium earned 210.2 253.5 37.9 47.6 Premium on reinsurance ceded (1.6) (1.9) 0.3 0.0 Net premium earned 208.5 251.6 37.6 47.5 Investment income1 97.0 89.0 27.1 22.2 Other income 0.8 0.8 0.2 0.2 Total income (A) 306
Slide 25: Balance Sheet
Balance Sheet ` in billion Particulars FY 17 FY18 Q1 FY 18 Q1 FY 19 SOURCES OF FUNDS Share Capital 10.0 10.0 10.0 10.0 Reserves and Surplus 44.6 53.7 47.8 57.3 Credit/(Debit) Fair Value Change Account 0.9 1.5 1.0 0.9 Sub-Total 55.5 65.3 58.8 68.2 Credit/(Debit) Fair Value Change Account 7.8 9.4 8.1
Slide 26: Abbreviations
Abbreviations Term Description Term Description GWP Gross Written Premium Opex Operating Expenses (excluding commission) NBP New Business Premium PAT Profit After Tax APE Annualized Premium Equivalent CAGR Compounded Annual Growth Rate IRP Individual Rated Premium GDP Gross Domestic Product AuM Asse
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 o
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 INSURANCE