Malayan Banking Bhd. · MYX:MAYBANK
Malayan Banking Bhd — Investor Day (July 2024)
33 slides from Malayan Banking Bhd's investor day presentation, Jul 4, 2024
Slide 1: Investor Day: Group Insurance and Takaful
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Slide 2: Overview of Etiqa
Overview of Etiqa 2
Slide 3: Etiqa is 5th largest ASEAN-owned insurer with leadership in key markets
Etiqa has grown to be the 5th largest ASEAN-owned insurer and the 11th largest overall in ASEAN, with strong leadership in key markets • Etiqa registered gross written premiums (GWP) of RM11.49 billion in FY2023 • Rated “A” by Fitch Ratings • Rated “AA1” by RAM Ratings • 7th largest life • AM Best R
Slide 4: One of only two providers in Malaysia with four licenses
We are one of only two insurance/takaful providers in Malaysia with four licenses - general insurance, general takaful, life insurance and family takaful Wide Distribution Network in Malaysia Bancassurance Agents Brokers Branches Over 350 Maybank Over 10,000 agents 25 brokers 24 branches branches On
Slide 5: Etiqa's gross premium and PBT increased 8-9x, record high in 2023
Etiqa’s gross premium and PBT has increased 8-9x over the years, achieving a record high in 2023 Etiqa Group (EIH) : Gross Premium and Profit Before Tax (PBT) 12,000 Gross Premium (RM mil, LHS) 11,471 11,485 2,400 11,266 11,089 PBT (RM mil, RHS) 10,000 2,000 8,064 8,000 1,600 7,264 6,135 6,000 5,382
Slide 6: Etiqa Group Financial Highlights for FY2023
This record performance came from continued strength in Malaysia and a rebound in Singapore Etiqa Group Financial Highlights for FY2023 GROSS NET ADJUSTED PROFIT TOTAL PREMIUM PREMIUM BEFORE TAX ASSETS RM11.5 B RM6.8 B RM1.1 B RM55.3 B 3.6% YoY 10.0% YoY 133.7% YoY 3.0% YoY NEW BUSINESS TOTAL BANCA
Slide 7: Diverse business portfolio continues to grow
Our diverse business portfolio continues to grow, reinforcing our position as a leading insurance provider in the region Business Breakdown for FY2023 (Gross Premium, in RM mil) By Region By Business Portfolio By Business Type 11,305 11,462 11,089 11,485 11,305 11,462 11,089 11,485 11,305 11,462 11,
Slide 8: Malaysia's top general insurance and takaful provider
We are Malaysia's top general insurance and takaful provider, with a strong market share and outpacing industry growth Gross Premium/Contribution & Market Share - Rolling 12 Months (RM mil, Market Share %) 1 1 1 2 2 16.1% 1 Motor MISC MAT Fire PA 4000 333 661 11.2% 3000 755 1 392 8.4% 375 7.7% 7.6%
Slide 9: Ranked #3 life insurer and family takaful operator in Malaysia
We are ranked #3 life insurer and family takaful operator in Malaysia, growing faster than the industry New Business Premium/Contribution & Market Share - Rolling 12 Months (RM mil, Market Share %) 1 1 5,000 19.2% Annualised Annualised Single & 18.5% 4,000 1 Reg - IL Reg - OL Group 12.6% 3,000 2,732
Slide 10: General led by agency; life/family led by bancassurance
General segment led by agency while life/ family segment led by bancassurance; takaful has a higher contribution to both segments Malaysia: General Business Malaysia: Life / Family Business Net Written Premium/Contribution in FY2023 Net Adjusted Premium/Contribution in FY2023 By Business Portfolio B
Slide 11: Etiqa Group Financial Highlights for 1Q FY2024
Our strong performance continued in 1Q 2024 with double-digit growth in premiums and profit Etiqa Group Financial Highlights for 1Q FY2024 GROSS NET ADJUSTED PROFIT TOTAL PREMIUM PREMIUM BEFORE TAX ASSETS RM3.8 B RM2.0 B RM285.4 M RM61.4 B 32.8% YoY 26.8% YoY 19.5% YoY 13.7% YoY NEW TOTAL BANCA BUSI
Slide 12: Focus on profitable general segments and sustainable life/family funds
We are focused on capturing market share for profitable general segments and generating sustainable funds from life / family business Also managing investments volatility… Life / Family General Profitability dependent on Profitability dependent on Good sales of Good Good Good sales to Focus on COST
Slide 13: Agile principles and win-win relationships with customers and partners
We apply Agile principles and engage customers and partners in a win- win relationship in delivering our strategy ENGAGING WITH OUR COLLABORATE WITH OUR Net Loss Ratio (%) for Etiqa and General Industry CUSTOMERS to understand their PARTNERS AND CUSTOMERS to 78.3% 75.1% 74.2% 73.7% preferences and b
Slide 14: M25+ SP6: Becoming a Regional Leader in Insurance
M25+ SP6: Becoming a Regional Leader in Insurance 14
Slide 15: SP6 end state vision: relevant at many stages of customers' lives
SP6’s end state vision is to make Etiqa relevant to our customers in as many stages of their lives as possible … but how ? Business Retirement Protecting Homeowner Wealth Legacy assets, loans, Parental Responsibilities Investment, Individual & Family Protecting home, planning owner & staff loans & s
Slide 16: Insurance is never top of mind for the public
Insurance is never top of mind for the public …and when they do, it’s only because they want to People do not wake up thinking about insurance… do other things I have a car…and I need insurance for my road tax I’m buying a home…and insurance is part of the home loan I’m going on holiday...maybe I ne
Slide 17: M25+ SP6 has changed customers' everyday life: travel
M25+ SP6 has changed customers’ everyday life ...when I TRAVEL... I can conveniently purchase it on my Etiqa+ mobile application 780 policies have been purchased on Etiqa+ within a month My flight delays are detected in real time and claims processed automatically Over 300 claims have been automatic
Slide 18: Etiqa intends to be relevant to customers' everyday life: car
Etiqa intends to be relevant to our customers everyday life …if I own a CAR... I just “One Click” on my Etiqa+ mobile application to renew my motor policy – over RM40 million in premiums have been sold since launch If I don’t drive my car much, I can get money back – Drive Less Save More feature has
Slide 19: Relevant to customers when meeting Agent or Relationship Manager
Etiqa intends to be relevant to our customers’ everyday life ... when I meet my Agent or Maybank Relationship Manager (RM)… RMs already have all my personal and financial details, and provide relevant recommendations to me – The BancaEASE platform used by RMs has helped sell additional RM300 million
Slide 20: SP6 YTD Performance: four key customer themes
SP6 YTD Performance: Driving success through four key customer themes YTD May YTD May Continued focus on customer Customer Theme Target Actual themes in FY24 Getting Best Advice from RM60M Exceeded Intermediaries RM 300 GWP Uplift (RM mil) Easy self service RM20M Exceeded RM 100 650 Knows my needs a
Slide 21: Digitalisation at Etiqa
Digitalisation at Etiqa 21
Slide 22: Digitalisation for business partners drives double-digit premium growth
Digitalisation for business partners has resulted in strong double-digit growth in premium contributions Salesperson of Bank Partners App Life / Family Agent App General Agent App Banca EaSE Agency EaSE General On The Go (GOTG) +84% Premium / Contribution uplift in +95% Premium / Contribution FY23 (
Slide 23: Digitalisation for customers: Etiqa+ Mobile App
Digitalisation for customers has improved their customer experience, resulting in our dominant online market share Etiqa+ Mobile App Via the app, users can: Online Purchase Platform View policy Buy insurance / takaful Make travel claims Request guarantee letter Request rebate for driving l
Slide 24: Our killer differentiation: Drive Less Save More
Our killer differentiation Money back, save the environment RM 7.3mil Drive Less Save More (DLSM) Rebate paid to customers DLSM Total Rebate Paid (RM ’000) 500 464 450 400 350 300 250 200 150 100 50 3 - Highly Confidential 24
Slide 25: Regional Online Direct Portal
Digitalising across our regional presence to improved efficiency and customer experience Regional Online Direct Portal Travel Developing internal competencies Motor to build reusable APIs and microservices and standardise core systems across regional operations Motorcycle Home Personal Accident High
Slide 26: Super Growth Areas
Super Growth Areas 26
Slide 27: Bancassurance: doubled topline and new business value
Bancassurance – Doubled topline and new business value Etiqa Group Etiqa Malaysia FY23 Gross Premium / Contribution Total Life/Family (RM ‘bn) Total General (RM ‘bn) Total Banca Gross Written Premium (RM ‘bn) BANCA New Business Value (RM ‘mil) 41% Agency 26% Others 3% Enterprise Corporate 16% Broker
Slide 28: Motor: aiming to significantly increase profitability
Motor – Aiming to significantly increase profitability Etiqa MY Motor Gross Written Premium (RM mil) 2,000 Targeted Preferred Segments – 1,830 SUV & higher value cars 1,742 1,800 Industry CAGR Etiqa CAGR 1,600 +4.9% +6.3% 1,460 1,447 1,369 1,400 1,200 1,116 1,136 1,076 1,036 1,028 933 956 1,000 800
Slide 29: Sustainability
Sustainability 29
Slide 30: Sustainability ambitions aligned with Maybank Group
Our sustainability ambitions are aligned with Maybank Group Highly Confidential 30
Slide 31: A 360-degree approach to sustainability
We have a 360-degree approach to sustainability Dimension 1 Dimension 2 Staff & Community Supplier Create sustainable value for the environment by To educate and advocate sustainable practices to our changing the mindset and culture of the company, staff suppliers so that they as our business partne
Slide 32: Only Malaysian insurer to sign up for UNEP FI PSI
Only Malaysian insurer to sign up for UNEP FI PSI On 21 March 2023, Etiqa became the first insurer in Malaysia to sign on to the United Nations’ (UN) Principles for Sustainable Insurance (PSI) under the UN Environment Programme Finance Initiative (UNEP FI) Becoming a signatory to the UN PSI reaffirm
Slide 33: Thank You
Thank You Humanising Financial Services 33 33
Malayan Banking Berhad (Maybank) — Investor Day (July 2024) on 6ix