Bangkok Life Assurance Public Co., Ltd. · SET:BLA
Bangkok Life Assurance Public — Investor Presentation (2013)
11 slides from Bangkok Life Assurance Public's investor presentation, 2013
Slide 1: BLA's Embedded Value 2012 (EV)
® nsvinwUs-nuGSA BLA’S EMBEDDED VALUE 2012 (EV)
Slide 2: Components of an Embedded Value
Components of an Embedded value Embedded Discounted Value of AddYour Add Value Your Text Text of In- Add Your Text distributable earnings from Force business value In-Force business Excess of market value of Adjusted net assets over statutory liabilities worth Embedded value = Value of In-Force busi
Slide 3: Value of in-force covered business (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 value of pr
Slide 4: Previous NPV Basis vs RBC Framework
Previous NPV Basis RBC Framework Fair value of assets Mix of Fixed Risk based solvency capital 95% MV of asset capital confidence interval + Market value Explicit risk Prescribed Implicit risk of assets margins 75% method of margins based on confidence valuing IFRS interval assets (e.g. framework bo
Slide 5: Embedded value of life insurance business
(unit : MB) Present Value of 2012 Adjusted Net Worth 11,457 VIF after cost of capital 19,154 Embedded value of life insurance business 30,610 Value of one year’s new business (VNB) VNB after cost of capital 1,910 Embedded value (EV)
Slide 6: VIF sensitivity analysis
19,154 Inv return – 25 bps 16,927, -12% 21,380 , 12% Inv return +25 bps Discount rate +100 bps 18,044, -6% 20,375, 6% Discount rate -100 bps Capital requirements +25% 17,247, -10% 21,060, 10% Capital requirements -25% Morbidity +10% 18,694, -2% 19,613, 2% Morbidity -10% Mortality +10% 18,852, -2% 19
Slide 7: Embedded value compared to 2011
Compared to a 2011 EV (unit : MB) Present Value of 2012 2011 Difference % change Adjusted Net Worth 11,457 9,216 2,241 24% VIF after cost of capital 19,154 16,190 2,964 18% Embedded value of life insurance business 30,610 25,406 5,204 20% Value of one year’s new business (VNB) VNB after cost of capi
Slide 8: EV movement
Capital EV 2012 Value of new EV 2011 Unwinding of Experience Assumption Economic movements business in-force business variances in- changes assumption changes 3,253 1,540 2,445 (1,164) (914) 143 30,610 25,406 EV movement
Slide 9: Embedded Value and EV per share
Summary of Embedded Value and Value of New Business Results (in millions of Baht) Risk Discount Rate Embedded Value as at 31 December 2012 9% 10% 11% Adjusted Net Worth("ANW") 11,457 11,457 11,457 Value of In- In-force ("VIF") 20,397 19,154 18,023 Embedded Value 31,853 30,610 29,480 EV per share 26.
Slide 10: Key assumptions
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 tax rat
Slide 11: Thank You!
® nsvinwUs-nuGSA Thank You !
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