Sbi Life Insurance Co. Ltd. · NSE:SBILIFE
Sbi Life Insurance — 9M FY2019 Earnings Presentation
28 slides from Sbi Life Insurance's earnings presentation, December 2018
Slide 1: Investor Presentation – 9M FY2019
Investor Presentation – 9M FY2019
Slide 2: Agenda
Agenda I Performance update II Strategy and initiatives III Growth drivers and industry overview IV Annexure 2
Slide 3: Performance snapshot
Performance snapshot ` in billion Growth 9M FY18 9M FY19 FY18 3 Yr CAGR Rate New Business Premium 72.0 94.7 32% 109.7 26% New Business APE 58.5 66.0 13% 85.4 33% Scale and Individual Rated Premium 53.5 61.1 14% 77.9 36% Growth Renewal Premium 88.6 121.4 37% 143.9 25% Gross Written Premium 160.6 216.
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 158.3 210.2 253.5 160.6 216.1 35% 121.4 37% 143.9 108.7 88.6 87.2 28.7 25.6 104% 36.8 14.1 21.3 64.7 84.1 57.9 66.0 14% 49.8 FY 16 FY 17 FY 18 9M
Slide 5: Product portfolio
Product portfolio Diversified product portfolio – Increase in share of protection business NBP Individual NBP Protection 9 % 5% 5% 5% 11 % 3% 1% 1% 1% 3% 45% 51% 53% 56% 59% 64% 79% 73% 72% 75% 34% 6% 39% 26% 22% 34% 3% 3% 6% 29% 4% 21% 19% 20% 17% 24% 24% 19% 11% 13% FY 16 FY 17 FY 18 9M FY 18 9M F
Slide 6: Distribution strength
Distribution strength Multi-channel distribution ` in billion NBP IRP 71.1 101.4 109.7 72.0 94.7 42.8 59.4 77.9 53.5 61.1 18% 12% 9% 14% 1% 1% 1% 1% 1% 25% 98% 25% 21% 38% 34% 31% 29% 29% 25% 8% 11% 27% 22% 62% 65% 65% 31% 65% 68% 70% 71% 15% 54% 53% 61% FY 16 FY 17 FY 18 9M FY 18 9M FY 19 FY 16 FY
Slide 7: Cost efficiency and profitability
Cost efficiency and profitability Cost ratios1 Profit after tax ` in billion 13.7% 11.6% 11.2% 12.3% 11.0% 13% 11.50 8.69 9.55 7.69 8.61 9.2% 7.8% 7.7% FY 16 FY 17 FY 18 9M FY 18 9M FY 19 6.8% 6.9% Robust growth of 13% in profits 4.5% 4.4% 4.6% Networth & Solvency (%) ` in billion 4.1% 3.7% Solvency
Slide 8: Customer retention and satisfaction
Customer retention and satisfaction Customer retention through quality underwriting Persistency1 83.0% 81.5% 83.3% 75.2% 74.0% 75.1% 70.0% 68.8% 70.5% 63.9% 63.9% 65.3% 58.4% 59.5% 57.9% 13th Month 25th Month 37th Month 49th Month 61st Month FY 18 9M FY 18 9M 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 1,341.5 798.3 977.4 1,162.6 1,341.5 22% 23% 93:7 55% 90:10 54% 89:11 53% 89:11 52% 23% 23% 78% 77% 77% 58:42 45% 61:39 46% 65:35 47% 67:33 48% 77% FY 16 FY 17 FY 18 9M
Slide 10: Agenda
Agenda I Performance update II Strategy and initiatives III Growth drivers and industry overview IV Annexure 10
Slide 11: 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 12: Initiatives – Transforming customer experience
Initiatives – Transforming customer experience Digital Initiatives RPA in customer engagement Customer Service Ria Chatbot 24/7 service Multiple interaction channels Advisors equipped with digital tools to for servicing SMS, IVR, deliver advice seamlessly and raise Product Innovation Call-center, We
Slide 13: Agenda
Agenda I Performance update II Strategy and initiatives III Growth drivers and industry overview IV Annexure 13
Slide 14: 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 2020 2030 USA
Slide 15: 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 – 2017 Protection margin highest amongst peers 11.0% 92% 10th largest life insurance 88% 85% market worldwide and 5th 78% largest
Slide 16: 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 17: Product portfolio and Channel mix
Product portfolio and Channel mix Product portfolio1 Industry Private Players 12% 13% 12% 42% 44% 37% 88% 87% 88% 58% 56% 63% FY 2017 FY 2018 H1 FY 19 FY 2017 FY 2018 H1 FY 19 Traditional ULIP Traditional ULIP Higher ULIP contribution among private players, though traditional products forms the majo
Slide 18: Agenda
Agenda I Performance update II Strategy and initiatives III Growth drivers and industry overview IV Annexure 18
Slide 19: Annualised Premium Equivalent (APE)
Annualised Premium Equivalent (APE) ` in billion Product portfolio Y-o-Y Mix Segment FY16 FY17 FY18 9M FY 18 9M FY 19 Growth (9M FY 19) Individual Savings 43.1 59.4 78.5 53.9 59.8 11% 91% - Par 15.5 11.2 20.9 14.4 12.9 (11%) 20% - Non Par 0.6 0.5 0.7 0.5 0.3 (36%) 1% - ULIP 26.9 47.7 56.9 38.9 46.5
Slide 20: Individual Annualised Premium Equivalent (APE)
Individual Annualised Premium Equivalent (APE) ` in billion Product portfolio Y-o-Y Mix Channel Segment FY17 FY18 9M FY 18 9M FY 19 Growth (9M FY 19) Participating 5.3 13.2 9.4 7.3 (22%) 12% Non Participating 1.0 0.9 0.7 2.0 191% 3% Bancassurance Unit Linked 32.4 38.9 27.4 33.9 24% 55% Total 38.7 53
Slide 21: Customer Age and Policy Term
Customer Age and Policy Term1 Average customer age in years Average policy term in years Par 40 Par 14 Protection 37 Protection 15 ULIP 44 ULIP 11 Non Par - Others 42 Non Par - Others 23 Overall 42 Overall 13 1. Age and term for individual products for 9M FY 19 21
Slide 22: Sensitivity Analysis
Sensitivity Analysis Change in VoNB% Change in VoNB% Scenario 9M FY19 FY18 Reference Rate +100 bps 2% 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 23: Revenue and Profit & Loss A/c
Revenue and Profit & Loss A/c ` in billion Particulars FY 17 FY 18 9M FY 18 9M FY 19 Premium earned 210.2 253.5 160.6 216.1 Premium on reinsurance ceded (1.6) (1.9) 1.4 0.6 Net premium earned 208.5 251.6 159.2 215.6 Investment income1 97.0 89.0 80.7 73.3 Other income 0.8 0.8 0.6 0.6 Total income (A)
Slide 24: Balance Sheet
Balance Sheet ` in billion Particulars FY 17 FY18 9M FY 18 9M FY 19 SOURCES OF FUNDS Share Capital 10.0 10.0 10.0 10.0 Reserves and Surplus 44.6 53.7 52.3 62.4 Credit/(Debit) Fair Value Change Account 0.9 1.5 2.0 0.9 Sub-Total 55.5 65.3 64.4 73.3 Credit/(Debit) Fair Value Change Account 7.8 9.4 12.2
Slide 25: Abbreviations
Abbreviations Term Description Term Description GWP Gross Written Premium Opex Operating Expenses (excluding commission) NBP New Business Premium CAGR Compounded Annual Growth Rate APE Annualized Premium Equivalent GDP Gross Domestic Product IRP Individual Rated Premium CIF Certified Insurance Facil
Slide 26: 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 27: 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 28: 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 28