Bangkok Life Assurance Public Co., Ltd. · SET:BLA
Bangkok Life Assurance Public — Q2 2020 Earnings Presentation
26 slides from Bangkok Life Assurance Public's earnings presentation, Aug 14, 2020
Slide 1: 2Q20 Results Presentation
2Q20 Results Presentation Investors and Analyst update 14 Aug 2020 © Bangkok Life Assurance
Slide 2: Disclaimer
Disclaimer The information contained in our presentation is intended solely for your personal reference only. In addition, such information contains projections and forward-looking statements that reflect our current views with respect to future events and financial performance. These views are base
Slide 3: Agenda
Agenda 1 2Q20 and 1H20 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Outlook by CEO 4 Q&A 8/20/2020 © Bangkok Life Assurance 3
Slide 4: Agenda
Agenda 1 2Q20 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 8/20/2020 © Bangkok Life Assurance 4
Slide 5: Synopsis of performance in 2Q20
Synopsis of performance in 2Q20 • 2Q20 profit: Net profit -38% YoY mainly due to • FX • Impairment • Overview of the performance FYP -9% by distribution channels: • Agent: FYP +13% YoY from effective sales tool. Product mix continues to be strong and ridership attachment on an upward trend. • Bancas
Slide 6: Synopsis of performance in 1H20
Synopsis of performance in 1H20 • 1H20 profit: Net profit -63% YoY mainly due to • Increase in PAD from 4% to 5% • Impairment • Overview of the performance FYP -14% and by distribution channels: • Agent: FYP +10% YoY from focus on ‘quality’ over ‘quantity’ of agent and good technology support during
Slide 7: Agenda
Agenda 1 2Q20 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 8/20/2020 © Bangkok Life Assurance 7
Slide 8: 2Q20: FYP -9%, better than -24% for industry
2Q20: FYP -9%, better than -24% for industry RYP -2% as expected New Business Renewal Total Financial Premium Premium Premium Highlight -9% -2% -4% Unit : Million Baht 7,089 1,180 5,908 6,839 5,766 1,073 69% 54% 39% 54% 56% 53% ROI 4.02% Bancassurance 63% 50% Agent Channel Inv. Yield 3.86% Others NP
Slide 9: 1H20: FYP -14% from Banca, while Agency and Other are +ve
1H20: FYP -14% from Banca, while Agency and Other are +ve. RYP -2% as expected New Business Renewal Total Financial Premium Premium Premium Highlight -14% -2% -4% Unit : Million Baht 14,881 ROI 4.79% 2,723 14,546 17,604 16,896 2,350 Inv. Yield 3.97% 69% 65% 49% 58% 39% 58% 59% 57% Bancassurance NPAT
Slide 10: 2Q20 FYP from Bancassurance -28% due to Covid
2Q20 FYP from Bancassurance -28% due to Covid Less customers at branch and less new loan affecting sales of protection product New Business Premium New Business Premium Product Mix Bancassurance Bancassurance Unit : Million Baht -9% -28% 2% 2% 4% 739 1,180 36% 1,073 Others 40% 534 Whole Life & Term
Slide 11: 1H20 FYP from Bancassurance -35% due to Covid impact
1H20 FYP from Bancassurance -35% due to Covid impact New Business Premium New Business Premium Product Mix Bancassurance Bancassurance Unit : Million Baht -14% -35% 2% 2% 0% 4% 2,723 1,767 2,350 30% Others 35% Whole Life & Term 65% 49% 1,150 MRTA Endowment 65% 59% 28% 36% 7% 15% 1H2019 1H2020 1H2019
Slide 12: Agency 2Q20 FYP +13% due to effective sales tools
Agency 2Q20 FYP +13% due to effective sales tools Good product mix with no filler New Business Premium New Business Premium Product Mix Agent Channel Agent Channel Unit : Million Baht -9% +13% 100 0% 422 5% 1,180 374 90 1,073 80 Filler 70 Whole Life & Term 60% 64% 60 Pension 63% 50% 50 Endowment & O
Slide 13: Agency 1H20 FYP +10% from focus on quality agents
Agency 1H20 FYP +10% from focus on ‘quality’ agents and effective sales tools Good product mix & increasing riders attachment ratio New Business Premium New Business Premium Product Mix Agent Channel Agent Channel Unit : Million Baht -14% +10% 2,723 0% 3% Filler 2,350 763 841 Whole Life & Term Pensi
Slide 14: Other: 1H20 FYP strong double digit growth from group and direct
Other: 1H20 FYP saw a strong double digit growth driven by group and direct marketing 1H20 FYP from Group channel growth >50% 1H20 FYP from Direct Marketing growth >20% YoY YoY 1H20 FYP from Online slightly decreases 1H20 FYP from Partnership was below expectation due to slower ramp up and Covid-19
Slide 15: Agenda
Agenda 1 2Q2020 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 8/20/2020 © Bangkok Life Assurance 15
Slide 16: Investment asset allocation tilt towards safe assets
Investment asset allocation saw a tilt towards safe asset while contribution from risky assets declined Asset Class 4Q19 2Q20 Remark Short-term Investment 4.1% 6.4% Increase temporarily to match benefits payment in 2H20 Bond 42.9% 44.8% For fixed income, increased focus on government bond while lowe
Slide 17: 1H20 investment income -2% YoY, in line with est.
1H20 investment income -2% YoY, in line with est. Investment yield decline from lower fixed income yield & tilt to safer assets. • Investment income in 2Q20 -2% YoY, -26% QoQ. Investment Income YoY fluctuation is mainly due to the timing or realized 10,000 gain which is the key explanation for ROI d
Slide 18: CAR increased from 266% to 275%
CAR increased from 266% in the previous quarter to 275% CAR (RBC1) CAR (RBC2) Total Capital Required (TCR) 308% 314% 1.7% Operation Risk 281% 289% 281% 275% 13.4% REITs 260% 270% 266% 252% 32.6% Equity Risk 6.9% Interest Rate Risk 23.2% Specific Risk 4.6% Credit Risk 14.8% Insurance Risk RBC 2 2017
Slide 19: Agenda
Agenda 1 2Q20 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 8/20/2020 © Bangkok Life Assurance 19
Slide 20: Statement of financial positions
Statement of financial positions 30 Jun 20 31 Dec 19 Inc / Dec MB % MB % MB % ASSETS increase 9,283 MB Assets Total assets increase in 2020 due to Cash and cash equivalents 14,129 4% 13,442 4% 687 5% increasing of investment asset and Investment assets 319,214 93% 311,375 93% 7,839 3% decreasing of
Slide 21: 2Q-2020 Financial Summary
2Q-2020 Financial Summary Million Baht 2Q/20 % TNP 2Q/19 % TNP %YoY 6M/20 % TNP 6M/19 % TNP %YoY Q2’20 First year premium 1,073 16% 1,180 17% -9% 2,350 15% 2,723 16% -14% Net income Renewal premium 5,766 86% 5,908 85% -2% 14,546 92% 14,881 89% -2% decrease 38%. FYP decrease 9% REIN&UPR (161) -2% (99
Slide 22: Agenda
Agenda 1 2Q20 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 8/20/2020 © Bangkok Life Assurance 22
Slide 23: Outlook by CEO
OUTLOOK BY CEO © Bangkok Life Assurance
Slide 24: 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 • Balance channel • Digital tools • Wealth & Health mix • Increase brand • Continuously throughout theme • Maintain good awa
Slide 25: Awards assuring our strength
Awards assuring our strength… Product Innovation Awards 2020 Asia Corporate Excellence & ‘สุดยอดองค์กรนว ัตกรรมดีเด่น’ Sustainability Awards (ACES) 2020 8/20/2020 © Bangkok Life Assurance 25
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