Bangkok Life Assurance Public Co., Ltd. · SET:BLA
Bangkok Life Assurance Public — FY2021 Earnings Presentation
26 slides from Bangkok Life Assurance Public's earnings presentation, Feb 28, 2022
Slide 1: Analyst Meeting Presentation 2021 Financial Results
Analyst Meeting Presentation 2021 Financial Results 28 Feb 2022
Slide 2: Agenda
Agenda 1 4Q21 and 2021 performance summary (K.Chaiyapol Inthuprapha– SVP, Corporate Strategy & Planning) 2 Key Highlights 2.1 Premiums and Business & Operation (K.Chaiyapol Inthuprapha – SVP, Corporate Strategy & Planning) (K.Anucha Pingkarawat –EVP, Agency Division) (K. Laddawan Sitthiworranant –EV
Slide 3: Synopsis of 4Q21 performance
Synopsis of 4Q21 performance • 4Q21 profit: Net profit +67% YoY mainly from higher investment income while declining 77% QoQ from dividend seasonality and impairment. • FYP: BLA +35% YoY and +17% QoQ • Bancassurance: FYP +74% YoY due to sales campaign • Agent: FYP +5% YoY from the launching of Unit-
Slide 4: Synopsis of 2021 performance
Synopsis of 2021 performance • 2021 profit: Net profit +99% YoY due to the increase of net premium and no extra provision for PAD reserve. • FYP: BLA -4% vs industry +8%. Excluding SP, BLA -8% vs. industry -6%. • Bancassurance: FYP -14% YoY due to the impact from Covid • Agent: FYP +8% YoY. Strong p
Slide 5: Agenda
Agenda 1 4Q21 and 2021 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 4 Q&A 5
Slide 6: 4Q21: FYP +35% due to Sales Campaign during 4Q21
4Q21: FYP +35% due to Sales Campaign during 4Q21 RYP -7%YoY from fully-paid as expected FYP RYP TP +35% -7% -1% 8,046 7,996 Unit : Million Baht 1,611 6,851 6,385 1,194 52% 45% 43% 50% 45% Bancassurance 40% Agent Channel Others 42% 33% 45% 49% 52% 54% 18% 15% 3% 3% 5% 6% 4Q20 4Q21 4Q20 4Q21 4Q20 4Q21
Slide 7: 2021: FYP -4% due to customers demand from branches falling
2021: FYP -4% due to customers demand from branches falling FYP RYP TP -4% +4% +3% 6,550 Unit : Million Baht 6,262 29,455 34,745 35,717 28,195 Bancassurance 65% 58% 53% 56% 55% 56% Agent Channel Others 29% 42% 39% 39% 38% 25% 10% 11% 6% 5% 6% 6% 2020 2021 2020 2021 2020 2021 4% 7% 6% Market Shares S
Slide 8: Banc: 4Q21 FYP +74%YoY due to the product campaign
Banc: 4Q21 FYP +74%YoY due to the product campaign New Business Premium New Business Premium Product Mix Bancassurance Bancassurance Unit : Million Baht +35% +74% 1,611 839 40% 37% Others 1,194 Bancassurance MRTA 52% 482 Par Agent Channel 40% Endowment Others 43% 52% 42% 33% 18% 15% 15% 11% 4Q20 4Q2
Slide 9: Banc: 2021 FYP -14% YoY due to less frequent visit to branch during pandemic
Banc: 2021 FYP -14% YoY due to less frequent visit to branch during pandemic Guarantee endowment products reduced to only 14% of FYP New Business Premium New Business Premium Product Mix Unit : Million Baht Bancassurance Bancassurance -4% -14% 6,550 6,262 4,228 19% 26% 3,654 Others Bancassurance MRT
Slide 10: Agent: 4Q21 FYP +5%YoY, Unit-Linked was launched in Oct 21
Agent: 4Q21 FYP +5%YoY, Unit-Linked was launched in Oct 21 and received good feedbacks New Business Premium New Business Premium Product Mix Unit : Million Baht +35% Agent Channel Agent Channel 1,611 +5% 7% 8% 524 5% 1,194 498 22% Unit-Linked 52% 35% Pension, Term & PA Bancassurance Endowment 40% 24
Slide 11: Agent: 2021 FYP +8%YoY due to sales strategy to focus on Health and non-guarantee
Agent: 2021 FYP +8%YoY due to sales strategy to focus on Health and non-guarantee product which better match customers’ needs New Business Premium New Business Premium Product Mix Unit : Million Baht -4% Agent Channel Agent Channel 6,550 +8% 2% 6,262 4% 3% 1,699 1,829 28% 27% Unit-Linked Pension, Te
Slide 12: 2021 Alternative channel : FYP +25%YoY led by Group and Online channels
2021 Alternative channel : FYP +25%YoY led by Group and Online channels Strong performance for Group FYP (+26%YoY) FYP from Direct Marketing was slightly lower Online FYP increased by 89%YoY FYP Partnership +66% YoY and saw higher sales across all 4 quarters Driven by both higher sales from existing
Slide 13: Agenda
Agenda 1 4Q21 and 2021 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments (K.Chollada Sophonpanich – EVP, Investment Division) 2.3 P&L and Key accounting change 2.4 EV & VNB 3 Outlook 4 Q&A 13
Slide 14: 2021 saw allocation tilt towards slightly riskier assets
2021 saw allocation tilt towards slightly riskier assets Fixed income saw increased exposure to debenture. Allocation to equity increased from both increased allocation and price increase Asset Class 2020 2021 Remark Short-term Investment 2.4% 2.3% Bond 49.4% 48.0% Bond allocation dropped mainly fro
Slide 15: FY2021 investment income -2.1% YoY, mainly from lower realized gain
FY2021 investment income -2.1% YoY, mainly from lower realized gain Investment yield decline from lower carrying yield INVESTMENT INCOME: 2021 -2.1% YoY, 4Q21 +12.8% YoY Investment income (THB mn) • The FY2021 YoY decrease came from all components • Interest income -1.0% YoY due to lower portfolio’s
Slide 16: CAR increased to 301% in 2021 (+26% YoY)
CAR increased to 301% in 2021 (+26% YoY) The key reason is from the company’s profitability 295% 299% 301% Total Capital Required (TCR) 274% 284% Risk charged by type to TCR 1.7% Operation Risk 13.3% REITs Risk 4Q20 1Q21 2Q21 3Q21 4Q21 40.0% Equity Risk Company CAR (RBC2) AIA 416% 4.8% Interest Rate
Slide 17: Agenda
Agenda 1 4Q21 and 2021 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 17
Slide 18: Statement of financial positions
Statement of financial positions 31 Dec 21 31 Dec 20 Inc / Dec MB % MB % MB % Assets Cash and cash equivalents 7,637 2% 8,072 2% (435) -5% ASSETS increase 7,365 MB Investment assets 331,083 95% 322,141 95% 8,942 3% Total assets increase in 2021 due to Other assets 8,423 2% 9,565 3% (1,142) -12% incr
Slide 19: 4Q-2021 Financial Summary
4Q-2021 Financial Summary Million Baht 4Q21 % of TNP 4Q20 % of TNP %YoY 2021 % of TNP 2020 % of TNP %YoY 4Q21 TNP -3% mainly from RYP -7%. First year premium 1,611 21% 1,194 15% 35% 6,262 18% 6,550 20% -4% Investment income +21% from gain on Renewal premium 6,385 85% 6,851 88% -7% 29,455 87% 28,195
Slide 20: Agenda
Agenda 1 4Q21 and 2021 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 20
Slide 21: 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 ▪ Risk Discount Rate 8.3% (2020: 8.3%) Embedded Value (EV) ▪ Investment Return 3.25% (2020: 3.0%) ▪ It is a common method
Slide 22: EV increased by 1% or 650 MB in 2021
EV increased by 1% or 650 MB in 2021 ▪ EV increased 1% or 650 MB from 2020 resulting in increase of Value of New Business 70,882 +1% 68,152 67,502 2019 2020 2021 # of outstanding share (Million) 1,708 1,708 EV per share 39.53 39.90 22
Slide 23: Annualized first year premium slightly decreased in 2021, whereas VNB significantly improved
Annualized first year premium slightly decreased in 2021, where as VNB significantly improve (THB mn) (THB mn) APE VNB 2,250 6,602 -2.7% 6,423 +95.5% 6,316 1,151 352 2019 2020 2021 2019 2020 2021 ▪ APE slightly decreased from 2020. ▪ VNB greatly increases by 95.5% from 2020 due to product management
Slide 24: Agenda
Agenda 1 4Q21 and 2021 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 24
Slide 25: Highlights in 2021 and the focus in 2022
Highlights in 2021 and the focus in 2022 Highlights in 2021 Focus in 2022 More balanced on VNB by 1 distribution channel 1 Grow FYP in low teens range Focus on products with healthy 2 Increased Rider attachment 2 profitability (Health, CI, PAR, and Unit-Linked) Provide and promote Shift from guarant
Slide 26: Bangkok Life contact
Nsvinw Us=nuson BANGKOK LIFE Ins. 02-777-8888 / wWnd 02-777-8899 www.bangkoklife.com
Bangkok Life Assurance Public — FY2021 Earnings Presentation on 6ix