Bangkok Life Assurance Public Co., Ltd. · SET:BLA
Bangkok Life Assurance Public — FY2022 Earnings Presentation
28 slides from Bangkok Life Assurance Public's earnings presentation, Feb 23, 2023
Slide 1: Analyst Meeting Presentation 4Q22 & 2022 Financial Results
Analyst Meeting Presentation 4Q22 & 2022 Financial Results 23 Feb 2023 1
Slide 2: Agenda
Agenda 1 4Q22 and 2022 performance summary (K.Chaiyapol Inthuprabha – SVP, Corporate Strategy & Planning) 2 Key Highlights 2.1 Premiums and Business & Operation (K.Chaiyapol Inthuprabha – SVP, Corporate Strategy & Planning) 2.2 Investments (K. Nattachai Rangpholsamrit, AVP - Equity Investment Depart
Slide 3: Agenda
Agenda 1 4Q22 and 2022 performance summary (K.Chaiyapol Inthuprabha – SVP, Corporate Strategy & Planning) 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 2.4 EV & VNB 3 Outlook 4 Q&A 3
Slide 4: 4Q22 Performance summary
4Q22 Performance summary 2,174 MB 6,667 MB 8,841 MB First year premium Renewal Year Premium Total Premium +35%YoY, +4%QoQ +4%YoY, -20%QoQ +11%YoY, -15%QoQ 3.72% 279 MB 377% ROI Net Profit CAR -6bps YoY, -27bps QoQ +2%YoY, -70%QoQ 3Q22: 363% Due to lower realized gain 4
Slide 5: 2022 Performance summary
2022 Performance summary 3.99% 6,925 MB 28,906 MB 35,831 MB ROI First year premium Renewal Year Premium Total Premium (2021: 3.97%) +11%YoY -2%YoY +0.3%YoY From higher interest & dividends 377% 3,006 MB 3,212 MB 68,901 MB VNB CAR Net Profit EV +34% YoY 2021: 301% +0.5%YoY +1% YoY From product manage
Slide 6: Agenda
Agenda 1 4Q22 and 2022 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation (K.Chaiyapol Inthuprabha – SVP, Corporate Strategy & Planning) 2.2 Investments 2.3 P&L and Key accounting change 2.4 EV & VNB 3 Outlook 4 Q&A 6
Slide 7: 4Q22: FYP +35%YoY due mainly to FYP growth from Banca channel
4Q22: FYP +35%YoY due mainly to FYP growth from Banca channel, RYP +4%YoY, resulting in TP +11%YoY FYP RYP TP +35% +4% +11% 2,174 8,841 Unit : Million Baht 6,385 6,667 7,996 1,611 49% 60% 43% 45% 45% Bancassurance 52% Agent Channel Others 22% 54% 51% 49% 44% 33% 15% 18% 3% 3% 6% 7% 4Q21 4Q22 4Q21 4Q
Slide 8: 2022: FYP +11%YoY, which higher than industry growth
2022: FYP +11%YoY, which higher than industry growth. RYP is still in line with expectation FYP RYP TP +11% -2% +0.3% Unit : Million Baht 6,925 35,718 35,831 29,455 28,906 6,262 64% 56% 55% 57% 57% Bancassurance 59% Agent Channel Others 29% 24% 39% 40% 37% 37% 12% 12% 5% 5% 6% 6% 2021 2022 2021 2022
Slide 9: Banca: 4Q22 FYP +57%YoY
Banca: 4Q22 FYP +57%YoY Growth in all categories New Business Premium New Business Premium Product Mix Unit : Million Baht Bancassurance Bancassurance +35% +57% 1% 2,174 1,315 27% 36% Bancassurance 1,611 MRTA 76% 839 Par Agent Channel 60% 43% Endowment Others 63% 52% 52% 22% 33% 29% 18% 11% 15% 4Q21
Slide 10: 2022 Banca: FYP +21%YoY
2022 Banca: FYP +21%YoY Growth in all categories New Business Premium New Business Premium Product Mix Unit : Million Baht +11% Bancassurance Bancassurance +21% 6,925 6,262 4,436 26% 29% Others Bancassurance 3,654 MRTA 64% Par Agent Channel 58% Endowment Others 59% 48% 29% 24% 22% 12% 12% 14% 2021 2
Slide 11: Agent : 4Q22 FYP -10%YoY
Agent : 4Q22 FYP -10%YoY Protection product is the main focus New Business Premium New Business Premium Product Mix Unit : Million Baht Agent Channel Agent Channel +35% -10% 5% Unit-Linked 2,174 5% 5% 8% 524 Pension & Others 1,611 470 32% 35% Endowment Bancassurance 60% Agent Channel 52% 11% Par-End
Slide 12: 2022 Agent: FYP -10%YoY
2022 Agent: FYP -10%YoY Par product + Unit-Linked accounted for one-third of product mix New Business Premium New Business Premium Product Mix Unit : Million Baht Agent Channel Agent Channel +11% -10% 3% 6% Unit-Linked 6,925 3% 5% 6,262 1,829 Pension & Others 27% 1,652 31% Bancassurance 9% Endowment
Slide 13: 2022 – Alternative channel
2022 – Alternative channel Online: +48% FYP growth Partnership : FYP+18%YoY (Achieved excellent results amidst industry negative growth) (Expanding products on-shelf with partners) Group : FYP -1% YoY Direct Marketing: FYP -7%YoY (Due to price competition) 13
Slide 14: Agenda
Agenda 1 4Q22 and 2022 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments (K. Nattachai Rangpholsamrit, AVP - Equity Investment Department) 2.3 P&L and Key accounting change 2.4 EV & VNB 3 Outlook 4 Q&A 14
Slide 15: 4Q22 saw no significant change QoQ
4Q22 saw no significant change QoQ YoY saw increase in ST investment from lower EQ allocation Asset Class 4Q21 3Q22 4Q22 Remark for movement ST Investment 2.3% 3.5% 3.8% Reserved for benefit payment Bonds 48.0% 48.0% 48.2% Debenture & Notes 32.0% 32.1% 31.7% Total Fixed Income 82.3% 83.6% 83.7% Equi
Slide 16: 4Q22: investment income -3.5% YoY from lower realized gain
4Q22: investment income -3.5% YoY from lower realized gain 2022: -0.1% YoY, lower realized gain was offset by higher interest and dividend income Investment income (MB) • INVESTMENT INCOME: • 4Q22 -3.5% YoY from realized gain -0.1% YoY • FY2022 almost flat YoY as lower realized gain was offset by hi
Slide 17: CAR increased to 377% in 4Q22 (+77% YTD, +14% QoQ)
CAR increased to 377% in 4Q22 (+77% YTD, +14% QoQ) The increase YTD is due to rising yield curve 400% 364% 363% 377% Total Capital Required (TCR) 329% 300% 300% Risk charged by type to TCR 200% 1.9% Operation Risk 100% 12.7% REITs Risk 0% 4Q21 1Q22 2Q22 3Q22 4Q22 41.6% Equity Risk Company CAR TLI 35
Slide 18: Agenda
Agenda 1 4Q22 and 2022 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change (K. Jaruwan Limkhunthammo – EVP, Accounting and Finance) 2.4 EV & VNB 3 Outlook 4 Q&A 18
Slide 19: Statement of financial positions
Statement of financial positions 31 Dec 22 31 Dec 21 Inc / Dec MB % MB % MB % Assets ASSETS decrease 4,532 MB Cash and cash equivalents 12,681 4% 7,637 2% 5,044 66% Total assets decrease from 2021 mainly Investment assets 320,488 94% 331,083 95% (10,595) -3% due to decreasing the market value of Oth
Slide 20: 4Q2022 Financial Summary
4Q2022 Financial Summary Common Size 4Q22 Million Baht 4Q22 4Q21 %YoY 2022 2021 %YoY 4Q22 4Q21 2022 2021 TNP +14% mainly from FYP +35%. First year premium 2,174 1,611 35% 6,925 6,262 11% 25% 21% 20% 18% Investment income -11% mainly from Renewal premium 6,667 6,385 4% 28,906 29,455 -2% 77% 85% 84% 8
Slide 21: Policy benefit payment
Policy benefit payment Policy benefit payment Major line item +13% Payment : Million Baht 38,168 Payment : Million Baht 33,653 110% Maturity 99% 7% Benefit Payment +12% 5% +33% 18,122 9% 147% 4% 150% 47% +20% 13,615 40% -14% 12,712 11,326 -10% 6,995 6,011 7,688 5% 6,399 6% 18% 16% 4% 5% 57% 60% 21%
Slide 22: Agenda
Agenda 1 4Q22 and 2022 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 2.4 EV & VNB (K. Jakkrapong Sangkeaw– SVP, Actuary Division) 3 Outlook 4 Q&A 22
Slide 23: EV Valuation Methodology & Assumptions
EV Valuation Methodology & Assumptions Methodology Assumptions ▪ BLA has adopted a traditional discounted cash flow Economic Assumption methodology to determine the components of Embedded ▪ Risk Discount Rate 8.3% (2021: 8.3%) Value (EV) ▪ Investment Return 3.75% (2021: 3.25%) ▪ This is a common met
Slide 24: EV increases by 1% or 749 MB after dividend payment
EV increases by 1% or 749 MB after dividend payment (EV increases 2,247 MB before dividend payment) • EV increases by 1% or 749 MB from 2021, due to Value of New Business. 67,502 68,152 +1% 68,901 2020 2021 2022 # of outstanding share (Million) 1,708 1,708 EV per share (Bt) 39.91 40.35 24
Slide 25: VNB and Annualized First Year Premium increase
VNB and Annualized First Year Premium increase APE (MB) VNB (MB) +10% 7,049 3,006 6,602 6,423 +34% 2,250 1,151 2020 2021 2022 2020 2021 2022 VNB 17.4% 35.6% 42.6% Margin ▪ APE increases in 2022. ▪ VNB significantly increases by 34% in 2021 due to the product management and an increase in ROI. 25
Slide 26: Agenda
Agenda 1 4Q22 and 2022 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 2.4 EV & VNB 3 Outlook (K. Chone Sophonpanich, President and Chief Executive Officer ) 4 Q&A 26
Slide 27: Highlights in 2022 and 2023 key focus areas
Highlights in 2022 and 2023 key focus areas Highlights in 2022 Key focus areas in 2023 Expand number of new quality 1 VNB reached 3,000 MB 1 agents Achieved double digit FYP growth Grow younger-gen customer 2 amidst industry stagnant growth 2 bases via online channel 3 THSI for 2 consecutive years 3
Slide 28: Q&A
28 Q&A nsvinw Us=fusoA
Bangkok Life Assurance Public — FY2022 Earnings Presentation on 6ix