Thaire Life Assurance Public Company Ltd · SET:THREL
Thaire Life Assurance Public — FY2020 Earnings Presentation
27 slides from Thaire Life Assurance Public's earnings presentation, Mar 2, 2021
Slide 1: Analyst Meeting FY2020
Analyst Meeting FY2020 2 March 2021
Slide 2: Disclaimer
Disclaimer The information of this presentation is the intellectual property of “Thaire Life Assurance Public Company Limited” (THREL). You may not reuse, republish or reprint or duplicate such information without written consent of THREL. All information is solely for reinsurance purpose. While the
Slide 3: Agenda
Agenda Section 1 About THREL & Business Overview Section 2 Thailand Life Insurance Market Section 3 Financial Performance Section 4 Outlook & Strategic Plan Section 5 ESG project 3
Slide 4: About THREL & Business Overview
About THREL & Business Overview 4
Slide 5: THREL at a glance
THREL at a glance • THREL is only local life reinsurance company in Thailand • THREL established in 2000 and listed in the SET since October 9, 2013 • Though all 22 domestic life insurance companies are customer of THREL Thailand Life Reinsurance Market Share in 2020F Global Competitors 14.0% THREL
Slide 6: THREL Business Profile Update
THREL Business Profile Update A.M.Best Rating CAR A- 429% As at 31Dec20 (Unaudited) AGM Score CG Score 100 full score “excellent” level “excellent” level 6
Slide 7: What THREL do?
What THREL do? Life Insurance Life Reinsurance ประกันชีวิตตรง ประกันชีวิตต่อ Insured Insurer Reinsurer ผู้เอาประกันภัย ผู้รบั ประกันภัย Reinsurance Premium ผู้รบั ประกันภัยต่อ Premium เบียประกันภัยต่อ เบียประกันภัยชีวิต Reinsurance Coverage Life Coverage Individual ความคุ้มครองชีวิต ร่วมรับความเสียง
Slide 8: Characteristics of THREL
Characteristics of THREL OUR PRODUCTS OUR SERVICE REINSURANCE SOLUTION 1.Ordinary Life 2.Group Insurance PRODUCT DEVELOPMENT 3.Credit Life &Mortgage 4.Personal Accident 5.Health Rider TECHNICAL TRAINING BUSINESS MODEL MEDICAL UNDERWRITING AND CLAIM MANAGEMENT Conventional Non-Conventional 8
Slide 9: THREL Business Model
THREL Business Model CONVENTIONAL NON-CONVENTIONAL Conventional reinsurance is reinsurance provided for life THREL serves as an active reinsurer by participating in all insurance companies which make all arrangements by activities with life insurance companies, ranging from new themselves, ranging f
Slide 10: Thailand Life Insurance Market
Thailand Life Insurance Market 10
Slide 11: Thailand Life insurance Market
Thailand Life insurance Market Million Baht • TLAA has announced the total premium of 2020 amount 5.7% 4.5% -2.7% 600,206 million baht or -1.7% (Ref. TLAA @17 Feb 2021) 7.5% 5.8% -1.7% 627,606 • However; there might have an 600,303 610,558 600,206 upturn of the premium growth 568,002 84,696 -17.4% 6
Slide 12: THREL Market Share
THREL Market Share 25.0% 20.0% 20.6% 20.8% 20.8% 19.5% 18.6% 15.0% 15.8% 14.0% 10.0% 5.0% 0.0% 2014 2015 2016 2017 2018 2019 2020F THREL Market Share 12
Slide 13: THREL Market Share
THREL Market Share 25.0% 23.0% 21.6% 21.6% 21.8% 21.9% 21.0% 20.3% 20.0% 20.6% 20.8% 20.8% 19.5% 18.6% 15.0% 15.8% 14.0% 10.0% 5.0% 0.0% 2014 2015 2016 2017 2018 2019 2020F THREL Market Share THREL Market Shate excl. AIA •THREL market share has been constantly at >20% however the drop started in 201
Slide 14: Products in the life insurance market
Products in the life insurance market 2018 2019 2020 Rider Other Rider Other Rider Other 1% 2% 1% Rider Acc Rider Acc Rider Acc 3% 2% PA 3% PA Rider Health Rider Health Rider Health 1% PA 1% 12% 13% 15% ILP ILP 1% ILP 4% 4% Annuity 6% Annuity Annuity 2% 2% OL 2% Credit OL OL 66% Credit Credit Life 6
Slide 15: Thailand Insurance Market Vs THREL
Thailand Insurance Market Vs THREL Million Baht 627,606 Key factor 640 ,000 610,914 1. Covid-19 620 ,000 600,303 600,206 2. Low Interest Rate 600 ,000 580 ,000 568,002 3. Slowdown from Banking Sector MARKET 560 ,000 - Lending e.g. SMEs 536,839 PREMIUM 540 ,000 - Loan to value Policy 520 ,000 - NPL m
Slide 16: 4Q & 2020 Financial Performance
4Q & 2020 Financial Performance 16
Slide 17: Key financial highlights 2018-2020
Million Baht Key financial highlights 2018-2020 PREMIUM EPS & DPS & Payout Ratio CAR 0.45 0.45 -2.5% 0% 500 429 0.40 0.40 450 391 407 0.35 0.42 0.35 0.35 400 0.32 0.30 0.30 1,210 1,203 1,277 350 AAA 350 0.25 0.25 0.26 300 0.20 0.20 76% 250 200 0.15 0.20 0.15 79% OIC 140 0.14* 150 1,190 0.10 0.10 1,1
Slide 18: THREL Product Mix 2020 Vs 2019
THREL Product Mix 2020 Vs 2019 Million Baht PA Ordinary Life Health Long-term Short-term 8% 22% +13.9% 11% 866 2020 761 22% -4.7% -8.8% 8% 23 37% 545 559 12 520 510 % % MRTA & CL 2019 Group -10.0% 33 24 292 % 262 -1.4% % 183 180 Remark 2020 2019 2020 2019 2020 2019 2019 2020 2019 2020 Group ( Life,
Slide 19: Financial Performance 4Q2020 and 2020
Financial Performance 4Q2020 and 2020 YE/2020 Million Baht 4Q20 3Q20 4Q19 QoQ YoY 2020 2019 YoY Premium: 0% growth • Negative premium growth from Gross Written Premiums 513 581 513 -12% 0% 2,339 2,340 0% long-term business at 76MB due to Net written premiums 507 576 508 -12% 0% 2,319 2,324 0% econom
Slide 20: Product Portfolio by Character of business (Con VS Non-con)
Product Portfolio by Character of business (Con VS Non-con) Million Baht Total Premiums 2019 2020 % Con Non Total Con Non Total Con Non Total - 0% Premium 1,262 1,078 2,340 1,206 1,132 2,339 -4% 5% 0% PA 2,340 2,339 %Contribution 54% 46% 100% 52% 48% 100% Health 183 180 Earned Premiums 1,261 1,020 2
Slide 21: Investment Assets
Investment Assets -1% YoY 1,996 1,979 269 13% 15% • The proportion of Bank and Fixed Income decreased from 288 63% to 61% caused by more investing in stock dividend and REITs. 455 23% 470 24% • Common stocks are classified as Available For Sale (AFS) in this year since 1Q/2020 and proportion of comm
Slide 22: Investment Income Breakdown
Investment Income 50 Bef.Impair 7.0 % 4.6% 5.5% 4.1% 4.1% 0.0 5 140 .0 3.8% 3.6% 40 5.0 % 3.9% 1.7% 4.1% 120 .0 Bef.Impair 3.4% 5.1% 100.1 3.4% 30 1.5% 0 100 .0 3.0% 3.0 % -1.8% 2.1% 80. 0 1.7% 1.0 % 19.2 18.2 20 -2.0% 60. 0 15.8 -68.7% -1.0% -0.05 40. 0 31.4 10 6.9 20. 0 -3.0% 0 40. 0 -9.5 0.0 5 0.
Slide 23: Outlook and Strategic Plan
Outlook and Strategic Plan 23
Slide 24: Outlook 2021 and Strategic Plan
Outlook 2021 and Strategic Plan New Partner Reinsurer & Start-up >20% Exponential growth New Market CLMV 5%-10% Additional growth Southeast Asia +3% Base line growth New Product Non-conventional products 1st – 3rd year plan 4th – 5th year plan Market analysis Customer focus Operation Fundamental Peo
Slide 25: Collaboration agreement with Pacific Life Re (PLRE)
Collaboration agreement with Pacific Life Re (PLRE) • Pacific Life Re Limited is a wholly-owned indirect subsidiary of Pacific Life Corp (a U.S. company), the parent company of Pacific Life Insurance Company (a U.S. company) which is a top-5 US direct life insurer and established for 150 years mutua
Slide 26: Kick start of ESG
Kick start of ESG Implementing 3Q19 4Q19 3Q-4Q20 2Q21 Penetration rate The ratio of life insurance THSI Assessment spending to GDP in 2019 found that Thai people spent Management Process only 3.6% of their revenue on & THSl Advisory SET ประกาศรายชือ บจ.ที their insurance premium while ผ่านเกณฑ ์คัดก
Slide 27: THANK YOU
Mt THANK YOU
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