Sbi Life Insurance Co. Ltd. · NSE:SBILIFE
Sbi Life Insurance — 9M FY2018 Earnings Presentation
23 slides from Sbi Life Insurance's earnings presentation, January 2018
Slide 1: SBI Life Insurance Performance update – 9M FY 2018
SBI Life Insurance Performance update – 9M FY 2018 Investor Presentation | January 2018
Slide 2: I. Performance update and focus areas
I. Performance update and focus areas 2
Slide 3: Key performance update
Key performance update ` in billion Q3 Q3 Growth 9M 9M Growth Parameters FY 17 FY18 FY17 (%) FY18 FY17 (%) New Business APE 24.7 17.4 42% 58.5 42.0 39% 67.3 Individual Rated Premium 22.9 16.5 38% 53.5 37.2 44% 59.4 Renewal Premium 39.0 29.7 32% 88.6 66.8 33% 108.7 Gross Written Premium 68.2 52.6 29%
Slide 4: Premium and market share
Premium and market share Focus on retail business ` in billion Gross Written Premium 210.2 Number of Policies (NOP) 1,275,550 160.6 14.1 46.3 136.2 979,885 846,777 28.5 88.6 99.2 68.2 66.8 398,074 4.5 52.6 323,960 39.0 5.1 29.7 57.9 64.7 24.6 40.9 17.9 Q3 FY 18 Q3 FY 17 9M FY 18 9M FY 17 FY 17 Q3 FY
Slide 5: Product portfolio
Product portfolio Diversified product portfolio (%) split by product type split by customer type 16% 22% 20% 41% 36% 46% 51% 63% 65% 59% 84% 78% 80% 22% 44% 39% 59% 64% 18% 25% 20% 20% 10% 10% 11% Q3 FY 18 Q3 FY 17 9M FY 18 9M FY 17 FY 17 Q3 FY 18 Q3 FY 17 9M FY 18 9M FY 17 FY 17 Par Non Par ULIP In
Slide 6: Channel mix
Channel mix New Business Premium channel mix ` in billion 29.1 23.0 72.0 69.4 101.4 10% 9% 17% 25% 30% 26% 25% 23% 26% 26% 22% 20% 64% 45% 66% 37% 57% 50% 53% Q3 FY 18 Q3 FY 17 9M FY 18 9M FY 17 FY 17 Banca Agency Others • Agency and Banca are prominent channels providing well diversified distributi
Slide 7: Cost efficiency
Cost efficiency Operating expense (Opex) ratio1 Total cost ratio3 8.9% 8.1% 7.7% 7.8% 6.5% 12.6% 12.3% 12.1% 11.6% 11.0% Q3 FY 18 Q3 FY 17 9M FY 18 9M FY 17 FY 17 Commission ratio2 4.6% 4.6% 4.0% 3.7% 3.7% Q3 FY 18 Q3 FY 17 9M FY 18 9M FY 17 FY 17 Q3 FY 18 Q3 FY 17 9M FY 18 9M FY 17 FY 17 Maintainin
Slide 8: Customer retention and satisfaction
Customer retention and satisfaction Customer retention through quality underwriting Persistency1 81.5% 79.8% 81.1% 74.0% 73.0% 73.9% 68.8% 67.5% 67.4% 69.6% 67.2% 63.9% 64.1% 62.5% 59.5% 13th Month 25th Month 37th Month 49th Month 61st Month 9M FY 18 9M FY 17 FY 17 Customer satisfaction metrics Surr
Slide 9: Assets under management
Assets under management1 Assets under Management growth ` in billion AuM – Linked/Non Linked AuM – Debt/Equity 1,116.3 1,116.3 977.4 977.4 907.2 24% 907.2 53% 23% 21% 88:12 91:9 90:10 54% 56% 76% 79% 77% 62:38 47% 63:37 61:39 46% 44% 9M FY 18 9M FY 17 FY 17 9M FY 18 9M FY 17 FY 17 Linked Non - Linke
Slide 10: Focus areas
Focus areas 1 • Number of lives covered ~ 23 millions Capitalize on Capitalize • Protection share increased by 18% insurance on insurance • Sampoorn Cancer Suraksha launched to cater underpenetrated health segment industry growth industry growth • Product innovation to cater protection requirement –
Slide 11: II. Growth opportunity and industry overview
II. Growth opportunity and industry overview 11
Slide 12: 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 13: 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 14: 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 15: Product portfolio and Channel mix
Product portfolio and Channel mix Product portfolio1 Industry Private Players 12% 12% 13% 44% 42% 43% 88% 88% 87% 56% 58% 57% H1 FY 2018 FY 2017 FY 2016 H1 FY 2018 FY 2017 FY 2016 Traditional ULIP Traditional ULIP Higher ULIP contribution among private players, though traditional products forms the
Slide 16: III. Annexure
Ill. Annexure SBI Life With Us, You're Sure
Slide 17: Indian embedded value (IEV)
Indian embedded value (IEV)1 Indian Embedded Value ` in billion 19.5%2 180.8 165.4 102.8 95.4 78.0 70.0 H1 FY 18 FY 17 Value in Force Adjusted New Worth Parameters 9M FY 18 H1 FY 18 FY 17 Value of New Business (VNB) 9.3 5.3 10.4 VNB Margin as % of APE2 16.0% 15.6% 15.4% 1. IEV – Indian Embedded Valu
Slide 18: Revenue and Profit & Loss A/c
Revenue and Profit & Loss A/c ` in billion Q3 Q3 Particulars 9M FY18 9M FY17 FY17 FY 18 FY 17 Premium earned 68.2 52.6 160.6 136.2 210.2 Premium on reinsurance ceded 0.4 0.2 1.4 1.1 1.7 Net premium earned 67.8 52.4 159.2 135.1 208.5 Investment income1 29.2 8.0 80.7 62.6 97.0 Other income 0.2 0.2 0.6
Slide 19: Balance Sheet
Balance Sheet ` in billion Particulars 9M FY18 9M FY17 FY17 SOURCES OF FUNDS Share Capital 10.0 10.0 10.0 Reserves and Surplus 52.3 43.1 44.6 Credit/(Debit) Fair Value Change Account 2.0 0.3 0.9 Sub-Total 64.3 53.4 55.5 Credit/(Debit) Fair Value Change Account 12.2 3.4 7.8 Policy Liabilities 528.0 4
Slide 20: 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 21: 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 22: 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 23: Thank you
Thank you INSURANCE