Sbi Life Insurance Co. Ltd. · NSE:SBILIFE
Sbi Life Insurance — Investor Presentation (May 2020)
35 slides from Sbi Life Insurance's investor presentation, May 5, 2020
Slide 1: Performance Update – FY20
CAN, WE WILL ! Protect India SBI Life INSURANCE With Us, You're Sure Performance Update — FY20
Slide 2: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 2
Slide 3: Strong base with focus on long term value creation
Strong base with focus on long term value creation Unrivalled distribution strength Consistent growth in lives covered 186,495 89 lakhs + Trained insurance personnel Lives covered Strong VoNB growth Customer Retention and Satisfaction 17% 96% Y-o-Y growth in VoNB of total individual applications sub
Slide 4: Key Performance Indicators
Key Performance Indicators Consistent performance as a result of disciplined strategy execution ` in billion Growth in Revenue Growth in Profitability New Business Premium Renewal Premium Value of New Business ` 165.9 (20% Y-o-Y) ` 240.4 (25% Y-o-Y) ` 20.1 CAGR 23% CAGR 29% (17% Y-o-Y) New Business
Slide 5: Premium
Premium Consistent growth in new business and renewal premium ` in billion GWP 210.2 253.5 329.9 406.3 23% Market Share - IRP1 Year Private Industry FY 17 20.7% 11.2% 240.4 25% FY 18 21.8% 12.3% 192.0 143.9 FY 19 22.3% 12.9% 108.7 29% FY 20 23.2% 13.3% 53.5 25.6 41.6 93 bps 36 bps 36.8 112.4 17% 84.
Slide 6: Product portfolio
Product portfolio Continued progress across all key customer segments NBP Individual NBP ` in billion Protection 5% 5% 12% 13% 1% 1% 4% 5% 51% 56% 53% 49% 79% 73% 76% 72% 39% 26% 34% 44% 3% 6% 4% 18% 17% 24% 18% 11% 19% 13% 7% 10% FY 17 FY 18 FY 19 FY 20 FY 17 FY 18 FY 19 FY 20 Par Non-par ULIP Par
Slide 7: Tapping profitable opportunities
Tapping profitable opportunities Strong steering of business towards protection and annuity ` in billion Protection Protection business increased by 27% NOP 250,324 321,424 28% Lives covered NOP Ticket Size through YONO Sum Assured (Individual) (Individual + Group) 15.5 22% 138,000+ 16K 12.7 3,804 B
Slide 8: Distribution strength
Distribution strength Quality and scale of multichannel distribution platforms enabling wider presence NBP ` in billion 35 lacs 101.4 109.7 137.9 165.9 Productivity per Branch1 (30 lacs) 12% 15% 20% 60% 25% NBP – Protection Share 18% (17%) 25% 21% 20% 22% 13% NBP – Annuity Share 5% (1%) Bancassuranc
Slide 9: Cost efficiency and profitability
Cost efficiency and profitability Maintaining high levels of cost efficiencies leading to growing profitability ` in billion Cost ratios1 Profit after Tax Total Cost 11.6% 11.2% 10.5% 9.9% Net-worth 55.5 65.3 75.8 87.4 Ratio 100% 7.8% 90% 6.8% 80% 6.3% 5.9% 70% 60% 4.4% 4.2% 4.0% 50% 3.7% 14.2 13.3
Slide 10: Analysis of movement in IEV
Analysis of movement in IEV ` in billion EV growth of 17% from ` 224.0 billion to ` 262.9 billion EV Operating Earnings: ` 45.9 billion Operating Return on Embedded Value: 20.5% 5.6 1.2 19.0 262.9 20.1 224.0 (7.1) Opening EV VoNB Unwinding Operating Experience Change in Operating Economic Closing EV
Slide 11: Value of New Business (VoNB) Movement
Value of New Business (VoNB) Movement ` in billion Robust VoNB growth of 17% from ` 17.2 billion to ` 20.1 billion1 VoNB 17.7% - 4.9% (1.3%) (2.5%) 18.7% Margin1 5.2 20.1 1.8 (1.4) 17.2 (2.7) Opening VoNB as on Impact of Business New Business Mix & Change in Operating Change in Economic Closing VoNB
Slide 12: Customer retention and satisfaction
Customer retention and satisfaction Deeper relationship with customers through quality underwriting and strong sales ethos Persistency1 85.1% 86.1% 81.1% 83.0% 78.5% 73.9% 75.2% 76.7% 71.4% 71.6% 67.4% 70.0% 67.3% 67.2% 62.5% 63.9% 66.4% 58.4% 57.2% 59.9% 13th Month 25th Month 37th Month 49th Month
Slide 13: Asset under Management
Asset under Management Continue to be one of the top private player in terms of AUM AuM – Linked | Non Linked Composition of Asset under Management ` in billion 977.4 1,162.6 1,410.2 1,603.6 Equity 3% 4% Growth of 14% in AUM vis-à-vis 21% Government FY 19 90:10 54% 89:11 53% 89:11 51% 89:11 51% secu
Slide 14: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 14
Slide 15: Responding to COVID-19
Responding to COVID-19 Business Continuity Plan Identified immediate significant challenges to alter operations based on advisories issued by government Customers Reassured customers with regards to continuity of service delivery in terms of claim settlement and premium collection. Communication & T
Slide 16: Responding to COVID-19
Responding to COVID-19 Measures Taken Activities during lockdown Alternate Sales Process for New business 1 lakh+ Created an entirely new process for concluding a new sale Customer servicing requests on digital platforms remotely by modifying the mobile application Remote submission of policy detail
Slide 17: Key Focus Areas
Key Focus Areas Customer Operational Digital Pan India presence Engagement Efficiencies Capabilities Widespread network Use of analytics to Improving persistency Providing seamless of distributors and understand customer leading to one of the end-to-end customer collaboration with new preferences en
Slide 18: Digital Quotient: Where do we stand?
Digital Quotient: Where do we stand? 17 lac+ active 17 lac+ proposals 3600 overview 1 lac+ active users users Empowering Tablet based Digitization of Business performance Provides access to key Distributors application to sell policy proposal filling form & trends for partners business data to the a
Slide 19: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 19
Slide 20: India Life Insurance - Structural Growth Drivers in Place
India Life Insurance - Structural Growth Drivers in Place Strong Demographic Tailwinds Supporting India Growth Story World GDP Growth1 (2018 %) Composition of Population2 Share of urban population3 7% 8% 10% 13% 40.1% 7.0 31% 34.9% 6.5 34% 37% 30.9% 40% 27.7% 28% 28% 26% 2.8 24% 1.5 1.4 1.3 1.1 0.8
Slide 21: Life Insurance – Significant Under Penetration versus other Markets
Life Insurance – Significant Under Penetration versus other Markets Share of Life Insurance in Savings expected to Rise Underpenetrated Insurance Market Premium as % of GDP – 20181 Protection gap highest amongst peers2 6.22% 6.12% • 10th largest life insurance market 92% 88% 85% worldwide and 5th la
Slide 22: Industry Composition
Industry Composition Product mix and Channel mix Product portfolio1 Industry Private Players 12% 13% 13% 9% Higher ULIP 38% 31% 42% 44% contribution among 91% private players, though 88% 87% 87% 62% 69% traditional products 58% 56% forms the major share FY 2017 FY 2018 FY 2019 H1 FY 20 FY 2017 FY 20
Slide 23: Agenda
Agenda I Performance update II Focus areas and initiatives III Industry overview IV Annexure 23
Slide 24: Annualised Premium Equivalent (APE)
Annualised Premium Equivalent (APE) APE Product mix and Channel mix ` in billion Product portfolio Y-o-Y Mix Segment FY17 FY18 FY 19 FY 20 Growth (FY 20) Individual Savings 59.4 78.5 87.2 93.9 7% 87% - Par 11.2 20.9 18.1 11.7 (35%) 11% - Non Par 0.5 0.7 0.4 7.4 1555% 7% - ULIP 47.7 56.9 68.6 74.8 9%
Slide 25: Individual Annualised Premium Equivalent (APE)
Individual Annualised Premium Equivalent (APE) Individual APE – Channel Mix Segment wise ` in billion Y-o-Y Mix Channel Segment FY18 FY 19 FY 20 Growth (FY 20) Participating 13.2 9.9 4.6 (54%) 5% Non Participating 0.9 3.5 9.1 161% 9% Bancassurance Unit Linked 38.9 49.0 53.4 9% 54% Total 53.0 62.4 67
Slide 26: Analysis of movement in IEV
Analysis of movement in IEV ` in billion IEV Movement Analysis - Components FY 20 Opening IEV 224.0 Expected return on existing business At Reference Rate 13.4 At expected real-world return in excess of reference rate 5.6 Operating Assumptions Change 1.2 VoNB added during the period 20.1 Operating E
Slide 27: Sensitivity Analysis
Sensitivity Analysis Scenario Change in EV % Change in VoNB % Reference Rate +100 bps (3.4%) 1.7% On effective Reference Rate -100 bps 3.6% (1.8%) tax rate basis Decrease in Equity Value 10% (1.4%) 0.0% IEV Proportionate change in lapse rate +10% (1.3%) (5.8%) ` 276.4 bn Proportionate change in laps
Slide 28: Persistency - Regular Premium
Persistency - Regular Premium Quality Underwriting and Customer Retention Persistency1 83.9% 83.7% 76.9% 74.3% 68.7% 66.4% 60.3% 61.7% 50.0% 47.5% 13th Month 25th Month 37th Month 49th Month 61st Month FY 19 FY 20 1. The persistency ratios are calculated as per IRDAI circular dated 23rd January 2014
Slide 29: Customer Age and Policy Term
Customer Age and Policy Term1 Long policy term as a result of long term insurance solutions Average customer age in years Average policy term in years Par 36 Par 13 Protection 37 Protection 13 ULIP 43 ULIP 11 Non Par - Others 39 Non Par - Others 19 Overall 40 Overall 13 29 1. Age and term for indivi
Slide 30: Revenue and Profit & Loss A/c
Revenue and Profit & Loss A/c ` in billion Particulars FY 18 FY 19 FY 20 Premium earned 253.5 329.9 406.3 Premium on reinsurance ceded (1.9) (1.0) (3.1) Net premium earned 251.6 328.9 403.2 Investment income1 89.0 116.0 33.4 Other income 0.8 0.8 0.5 Total income (A) 341.4 445.7 437.2 Commission paid
Slide 31: Balance Sheet
Balance Sheet ` in billion Particulars FY18 FY 19 FY 20 SOURCES OF FUNDS Share Capital 10.0 10.0 10.0 Reserves and Surplus 53.7 64.6 78.8 Credit/(Debit) Fair Value Change Account 1.5 1.2 (1.4) Sub-Total 65.3 75.8 87.4 Credit/(Debit) Fair Value Change Account 9.4 10.6 (15.9) Policy Liabilities 555.6
Slide 32: Abbreviations
Abbreviations Term Description Term Description GWP Gross Written Premium NON PAR Non-Participating NBP New Business Premium Opex Operating Expenses (excluding commission) NOP Number of Policies CAGR Compounded Annual Growth Rate APE Annualized Premium Equivalent GDP Gross Domestic Product IRP Indiv
Slide 33: 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
Slide 34: 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 35: 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 35
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