Bangkok Life Assurance Public Co., Ltd. · SET:BLA

Bangkok Life Assurance Public — Q2 2021 Earnings Presentation

25 slides from Bangkok Life Assurance Public's earnings presentation, Aug 13, 2021

  1. Slide 1: 2Q21 Analyst presentation

    2Q21 Analyst presentation 13 August 2021

  2. Slide 2: Agenda

    Agenda 1 2Q21 and 1H21 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Outlook 4 Q&A 2

  3. Slide 3: Synopsis of performance in 2Q21

    Synopsis of performance in 2Q21 • 2Q21 profit: Net profit +19% YoY from increase in total premium, investment income and lower ECL • Total premium +17% YoY, from FYP +80% and RYP +5% • FYP: BLA +80% vs. industry +15%. Excluding SP, BLA +94% vs. industry -3%. • Bancassurance: FYP+131% YoY from new pr

  4. Slide 4: Synopsis of performance in 1H21

    Synopsis of performance in 1H21 • 1H21 profit: Net profit +102% YoY due to increase in PAD reserve from 4% to 5% in 1Q20. • FYP: BLA +39% vs. industry +10%. Excluding SP, BLA +46 vs. industry -8%. • Bancassurance: FYP +70% YoY due to the right product offering • Agent: FYP +7% YoY higher number of p

  5. Slide 5: Agenda

    Agenda 1 2Q21 and 1H21 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Outlook 4 Q&A 5

  6. Slide 6: 2Q21: FYP +80% driven by solid growth across channels, especially Banca

    2Q21: FYP +80% driven by solid growth across channels, especially Banca RYP remains unaffected by Covid-19, increasing 5% YoY, resulting in TP +17% YoY FYP RYP TP +80% +5% +17% Unit : Million Baht 6,082 8,013 5,766 5% 1,930 3% 6,839 5% 9% 6% 41% 37% Others 1,073 27% 41% 41% Agent Channel 11% Bancass

  7. Slide 7: 1H21: FYP +39% driven by strong growth across all channels

    1H21: FYP +39% driven by strong growth across all channels RYP increased 1%, slightly better than expected. TP +7% FYP RYP TP +39% +1% +7% 3,272 14,545 14,730 18,003 Unit : Million Baht 16,896 13% 7% 6% 8% 8% 2,350 28% 35% 35% 34% 15% 35% Others Agent Channel 36% Bancassurance 60% 57% 58% 56% 59% 49

  8. Slide 8: Banc: 2Q21 FYP +131% YoY from new product launch in 2Q21

    Banc: 2Q21 FYP +131% YoY from new product launch in 2Q21 New Par Product is now 75% of total FYP New Business Premium New Business Premium Product Mix Unit : Million Baht Bancassurance Bancassurance +80% +131% 1,930 18% 1,235 37% 9% Others MRTA Others 27% Par Agent Channel 1,073 75% Endowment Bancas

  9. Slide 9: Banc: 1H21 FYP +70% YoY due to right products offering

    Banc: 1H21 FYP +70% YoY due to right products offering New Par Product is 63% of total FYP New Business Premium New Business Premium Product Mix Unit : Million Baht +39% Bancassurance Bancassurance +70% 3,272 13% 21% 1,952 33% 2,350 Others 28% MRTA Others 15% Par Agent Channel 63% Bancassurance 1,15

  10. Slide 10: Agent: 2Q21: +21%YoY, Rider attachment increased from 19% to 29%

    Agent: 2Q21: +21%YoY, Rider attachment increased from 19% to 29% New Business Premium New Business Premium Product Mix Unit : Million Baht Agent Channel Agent Channel +80% +21% 2% 2% 1,930 9% 512 28% 28% 422 Pension, Term & PA Others 27% 3% 11% Endowment Agent Channel 1,073 Par Bancassurance 11% Who

  11. Slide 11: Agent: 1H21: +7%YoY, Par product is 15% of product mix

    Agent: 1H21: +7%YoY, Par product is 15% of product mix New Business Premium New Business Premium Product Mix Unit : Million Baht Agent Channel Agent Channel +39% +7% 3,272 2% 2% 13% 901 2,350 841 25% 33% 28% Pension, Term & PA Others 15% 15% Endowment Agent Channel Par Bancassurance 36% Whole Life 6

  12. Slide 12: 1H21: Strong growth in all channels except DM

    1H21: Strong growth in all channels except DM FYP from Direct Marketing is relatively flat. Double digit growth for Group FYP New lead partners will start to generate sales in 2H21 FYP Online nearly doubled Doubled FYP from Partnership due to sales with new due to 10/1 product launched in 2Q21 partn

  13. Slide 13: Agenda

    Agenda 1 2Q21 and 1H21 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Outlook 4 Q&A 13

  14. Slide 14: 2Q21 investment asset +1.9% QoQ driven by new money

    2Q21 investment asset +1.9% QoQ driven by new money Debenture allocation increased, equity allocation was trimmed from valuation reason. Asset Class 1Q21 2Q21 Remark Short-term Investment 4.3% 3.8% Cash decreased from higher fixed income investment Bond 48.6% 48.5% Allocation to bond flat QoQ while

  15. Slide 15: 2Q21 investment income -0.1% YoY, higher realized gain offset lower investment yield

    2Q21 investment income -0.1% YoY, higher realized gain offset lower investment yield Investment yield decline from lower fixed income yield & dividend income Investment income (unit: mb) -0.1% YoY INVESTMENT INCOME: 2Q21 -0.1% YoY and +2.8% QoQ +2.8% QoQ • The YoY slight decline is from lower divide

  16. Slide 16: CAR increased from 284% in previous quarter to 295%

    CAR increased from 284% in previous quarter to 295% The reasons are 1) company profit 2) decrease of equity allocation and 3) benefit from yield movement 350% 284% 295% Total Capital Required (TCR) 300% 275% 263% 274% 250% Risk charged by type to TCR 200% 1.8% 150% Operation Risk 100% 13.1% REITs Ri

  17. Slide 17: Agenda

    Agenda 1 2Q21 and 1H21 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Outlook 4 Q&A 17

  18. Slide 18: Statement of financial positions

    Statement of financial positions 30 Jun 21 31 Dec 20 Inc / Dec MB % MB % MB % Assets Cash and cash equivalents 10,752 3% 8,072 2% 2,679 33% ASSETS increase 8,749 MB Investment assets 328,968 94% 322,141 95% 6,828 2% Total assets increase in 2021 due to Other assets 8,807 3% 9,565 3% (758) -8% increa

  19. Slide 19: 2Q21 Financial Summary

    2Q21 Financial Summary Common Size Million Baht 2Q21 2Q20 %YoY 6M21 6M20 %YoY 2Q21 2Q20 6M21 6M20 2Q21 First year premium 1,930 1,073 80% 3,272 2,350 39% 25% 16% 19% 15% Renewal premium 6,082 5,766 5% 14,731 14,546 1% 78% 86% 87% 92% TNP +17% mainly from FYP +80% REIN&UPR (242) (161) -50% (1,079) (1

  20. Slide 20: Policy benefit payment

    Policy benefit payment Policy benefit payment Major line item Payment (Bt m.) +8% payment(mn baht) 13,130 12,202 77% -3% 82% 80% 77% 11% 8% 5% 4,131 4,021 5% +41% 18% 24% -4% +26% 3,102 6,268 5,468 30% 24% 2,208 12% 8% 5% 5% 1,685 1,611 1,597 25% 23% 1,266 27% 24% 34% 31% 31% 26% 5% 7% 4% 6% 2Q20 2Q

  21. Slide 21: Agenda

    Agenda 1 2Q21 and 1H21 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Outlook 4 Q&A 21

  22. Slide 22: 3. Outlook by CEO

    3. OUTLOOK BY CEO 22

  23. Slide 23: ® NsvinwUs:nub5c1

    ® NsvinwUs:nub5c1 sonnhUADwayINNS?

  24. Slide 24: Thank you

    Please scan here to take survey Thank you 24

  25. Slide 25: Thank you analysts

    Thank you analysts See you at our next meeting & stay safe! 25

Bangkok Life Assurance Public — Q2 2021 Earnings Presentation on 6ix