Sbi Life Insurance Co. Ltd. · NSE:SBILIFE
Sbi Life Insurance — FY2018 Earnings Presentation
32 slides from Sbi Life Insurance's earnings presentation, April 2018
Slide 1: Performance update – FY 2018
SBI Life Insurance Performance update – FY 2018 Investor Presentation | April 2018
Slide 2: Performance update
Performance update 2
Slide 3: Key performance metrics
Key performance metrics ` in billion 3 year Parameters FY16 FY17 FY18 Growth CAGR Revenue Parameters New Business APE 50.5 67.3 85.4 27% 33% Individual Rated Premium 42.8 59.4 77.9 31% 36% Renewal Premium 87.2 108.7 143.9 32% 25% Gross Written Premium 158.3 210.2 253.5 21% 25% Financial Parameters P
Slide 4: Premium and market share
Premium and market share Focus on individual business ` in billion Gross Written Premium Individual rated Premium 253.5 3 Year CAGR – 36% 128.7 158.3 210.2 21% 25.6 36.8 21.3 143.9 32% 77.9 17.7 108.7 31% 87.2 59.4 73.4 42.8 84.1 31.2 37.6 49.8 64.7 30% FY 15 FY 16 FY 17 FY 18 FY 15 FY 16 FY 17 FY 1
Slide 5: Product portfolio
Product portfolio Diversified product portfolio (%) Product type – Total NBP Product type – Individual NBP 3 Year CAGR – 26% 3 Year CAGR – 31% 35% 45% 51% 50% 56% 64% 79% 73% 39% 11% 34% 39% 26% 6% 3% 39% 4% 26% 29% 24% 21% 19% 17% 11% FY 15 FY 16 FY 17 FY 18 FY 15 FY 16 FY 17 FY 18 Par Non Par ULIP
Slide 6: Channel mix
Channel mix1 Multi-channel distribution ` in billion NBP channel mix IRP channel mix 55.3 71.1 101.4 109.7 31.2 42.8 59.4 77.9 2% 1% 1% 1% 19% 18% 12% 25% 31% 20% 22% 38% 34% 25% 45% 33% 27% 22% 37% 62% 27% 65% 68% 54% 53% 54% 61% 48% FY 16 FY 16 FY 17 FY 18 FY 15 FY 16 FY 17 FY 18 Banca Agency Othe
Slide 7: Cost efficiency
Cost efficiency Operating expense (Opex) ratio1 Total cost ratio3 9.1% 9.2% 7.8% 6.8% 13.8% 13.7% 11.6% 11.2% FY15 FY 16 FY 17 FY 18 Commission ratio2 4.7% 4.5% 4.4% 3.7% FY15 FY 16 FY 17 FY 18 FY15 FY 16 FY 17 FY 18 Maintaining cost leadership through operational efficiency 1. Opex ratio is operati
Slide 8: Components of Indian Embedded Value (IEV)
Components of Indian Embedded Value (IEV) Indian Embedded Value (IEV) ` in billion Embedded Value Operating Profit (EVOP): ` 29.5 billion Operating Return on Embedded Value: 17.9% Value of Inforce (VIF) Business 190.7 125.7 (0.6) (2.8) (6.4) 74.7 ANW PVFP TVFOG FCRC CRNHR IEV 1. The rate of income t
Slide 9: Analysis of movement in IEV
Analysis of movement in IEV Indian Embedded Value (IEV) ` in billion EV grown by 23% CAGR between FY 16 to FY 18 14.1 1.6 0.1 190.7 13.9 165.4 (1.8) (2.4) Opening EV VoNB Unwinding Operating Change in Economic Dividend Paid Closing EV Experience Operating Assumption Variance Assumptions Change & Var
Slide 10: Components of Value of New Business (VoNB)
Components of Value of New Business (VoNB) ` in billion Value of New Business (VoNB) Robust VoNB growth of 34% from ` 10.4 billion to ` 13.9 billion 17.0 (0.1) (0.6) 13.9 (2.4) VoNB Before CoC TVFOG FCRC CRNHR VoNB After CoC VoNB Margin increases to 16.2% Components may not add up to total due to ro
Slide 11: Profitability
Profitability Increasing profit ` in billion Strong Solvency Dividend 18% 17% 19% 21% Payout Ratio1 2.16 11.50 2.12 8.61 9.55 8.20 2.06 2.04 FY 15 FY 16 FY 17 FY 18 FY 15 FY 16 FY 17 FY 18 Robust growth in profit after tax with strong solvency despite consistent growth Increasing networth ` in billi
Slide 12: Customer retention and satisfaction
Customer retention and satisfaction Customer retention through quality underwriting Persistency1 79.3% 80.7% 81.1% 83.0% 79.2% 73.9% 73.2% 73.9% 75.2% 76.9% 69.2% 67.4% 70.0% 67.2% 64.5% 62.5% 63.9% 58.4% 53.8% 40.7% 13th Month 25th Month 37th Month 49th Month 61st Month FY 15 FY 16 FY 17 FY 18 Cust
Slide 13: Assets under management
Assets under management1 Assets under Management growth ` in billion AuM – Linked/Non Linked AuM – Debt/Equity 713.4 798.3 977.4 1,162.6 713.4 798.3 977.4 1,162.6 23% 94:6 51% 93:7 55% 90:10 54% 89:11 53% 23% 23% 31% 77% 77% 42:58 49% 58:42 45% 61:39 46% 65:35 47% 77% 69% FY 15 FY 16 FY 17 FY 18 FY
Slide 14: Strategy
Strategy 1 Leverage insurance industry growth through deeper penetration • Number of lives covered ~ 23 millions • Protection business increased by 23% • New Business Sum Assured increased by 29% to ` 2,820 billion 2 Expansive distribution network • Strong distribution network of 159,004 trained ins
Slide 15: SBI Life's CSR philosophy
Corporate Social Responsibility SBI Life’s CSR philosophy Child Education Healthcare Rural Development Environment Skill Development 2.2 lakh+ 256 projects lives undertaken impacted 15
Slide 16: Awards & Recognitions
Awards & Recognitions Won Private Sector Life Insurance Company of the Year (Large Category) Won Bancassurance Leader, Life Insurance (Large Companies Category) Won Data Analytics Initiative of the Won Skoch Resilient India Awards 2017 for Year (Overall Award Across Awarded „India‟s Leading insur
Slide 17: Growth opportunity and industry overview
Growth opportunity and industry overview 17
Slide 18: India Life Insurance - Structural Growth Drivers in Place
India Life Insurance - Structural Growth Drivers in Place Strong Demographic Tailwinds Supporting India Growth Story India : Fastest Growing Economy in the World Rapid Urbanization3 [USD $ Trillion] 21.3 Urbanization Rate CAGR 2007 – 2017 3.5% 3rd Largest Economy by GDP1 (PPP) – 2016 18.6 2.6% 2.7%
Slide 19: 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 – 2016 Life Insurance Density (Premium per Capita USD) – 2016 2,717 10th largest life insurance 11.5% market worldwide and 5th 1,
Slide 20: Life insurance industry evolution in India
Life insurance industry evolution in India ` billion Revival Phase Private players and Industry NBP1 performance Private: 21% CAGR High Growth Phase Growth Stagnation Industry: 24% CAGR 1,750 Private: 19% CAGR Private: -3% CAGR Industry:14% CAGR Industry: -3% CAGR 1,387 1,258 1,196 1,093 1,142 1,131
Slide 21: Product portfolio and Channel mix
Product portfolio and Channel mix Product portfolio1 Industry Private Players 13% 12% 13% 45% 42% 43% 87% 88% 87% 55% 58% 57% 9M FY 2018 FY 2017 FY 2016 9M FY 2018 FY 2017 FY 2016 Traditional ULIP Traditional ULIP Higher ULIP contribution among private players, though traditional products forms the
Slide 22: Annexure
Annexure @ S21 Life INSURANCE 22 With Us, You're Sure
Slide 23: Revenue and Profit & Loss A/c
Revenue and Profit & Loss A/c ` in billion Particulars FY17 FY18 Premium earned 210.2 253.5 Premium on reinsurance ceded (1.6) (1.9) Net premium earned 208.5 251.6 Investment income1 97.0 89.0 Other income 0.8 0.8 Total income (A) 306.3 341.4 Commission paid 7.8 11.2 Operating and other expenses2 19
Slide 24: Balance Sheet
Balance Sheet ` in billion Particulars FY17 FY18 SOURCES OF FUNDS Share Capital 10.0 10.0 Reserves and Surplus 44.6 53.7 Credit/(Debit) Fair Value Change Account 0.9 1.5 Sub-Total 55.5 65.3 Credit/(Debit) Fair Value Change Account 7.8 9.4 Policy Liabilities 483.2 555.6 Provision for Linked Liabiliti
Slide 25: Analysis of movement in IEV
Analysis of movement in IEV ` in billion IEV Movement Analysis - Components FY 18 Opening IEV 165.4 Expected return on existing business At Reference Rate 9.9 At expected real-world return in excess of reference rate 4.2 Operating Assumptions Change 0.1 VoNB added during the period 13.9 Operating Ex
Slide 26: Sensitivity Analysis
Sensitivity Analysis Scenario Change in EV% Change in VoNB% Reference Rate +100 bps (4%) 1% Reference Rate -100 bps 4% (2%) Decrease in Equity Value 10% (1%) - Proportionate change in lapse rate +10% (1%) (7%) Proportionate change in lapse rate -10% 1% 7% Mortality / Morbidity +10% (2%) (8%) Mortali
Slide 27: IEV Methodology and Approach (1/2)
IEV Methodology and Approach (1/2) Embedded Value is a measure of the consolidated value of shareholders‟ interest in the covered life insurance business. The embedded value has been determined by following a market consistent methodology, as per the requirements and principles set forth by the IAI
Slide 28: IEV Methodology and Approach (2/2)
IEV Methodology and Approach (2/2) Components of Value of Inforce (VIF) business: Present Value of Future Profits (PVFP): PVFP represents the present value of future post taxation shareholder cash-flows projected to emerge from the in-force covered business and the assets backing liabilities of the
Slide 29: Abbreviations
Abbreviations Term Description Term Description GWP Gross Written Premium Opex Operating Expenses (excluding commission) NBP New Business Premium PAT Profit After Tax APE Annualized Premium Equivalent CAGR Compounded Annual Growth Rate IRP Individual Rated Premium GDP Gross Domestic Product AuM Asse
Slide 30: 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 31: 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 32: Thank you
Thank you INSURANCE