Bangkok Life Assurance Public Co., Ltd. · SET:BLA
Bangkok Life Assurance Public — Q1 2014 Earnings Presentation
35 slides from Bangkok Life Assurance Public's earnings presentation, May 12, 2014
Slide 1: 1Q/2014 Performance Update
1Q/2014 Performance Update May 12, 2014
Slide 2: Performance Highlights – 1Q2014: Shareholders' Equity Movement
Performance Highlights – 1Q2014 Shareholders’ Equity Movement 16 693 1,096 22,264 24,069 MB MB +1,805 MB Equity 1Q14 Fair Value Others Equity 31 Dec 13 Profit gains 31 Mar 14 2
Slide 3: Performance Highlights – 1Q2014: Net Profit Movement
Performance Highlights – 1Q2014 Net Profit Movement +288 -102 +56.34 -25 +43 Interest Dividend Underwriting Opt. Other Income & Profit Expenses Cap gains 922 MB 1,096 MB Net Profit Net Profit 1Q2013 +18.88% 1Q2014 17.65% Return on Equity 18.92% 3
Slide 4: Premium Growth - All Type
Premium Growth - All Type 1Q14 %YoY %QoQ Source: Thai Life Association and The Company First Year Premium +199.69% +656.90% Renewal Year Premium +47.54% +97.81% 26,997 Total Premium +103.84% +231.59% TP 12,251 13,244 (Million Baht) 9,216 RYP 8,497 8,142 8,304 14,746 7,908 6,139 6,194 4,920 FYP 1,308
Slide 5: Premium Growth - Bancassurance
Premium Growth - Bancassurance 1Q14 %YoY %QoQ Source: Thai Life Association and The Company First Year Premium +212.57% +1,271.82% Renewal Year Premium +68.68% +271.02% 22,854 Total Premium +133.53% +562.63% TP 9,068 (Million Baht) 9,787 6,160 RYP 5,333 5,376 3,449 13,786 5,208 3,389 4,411 2,444 952
Slide 6: Premium Growth - Agency
Premium Growth - Agency 1Q14 %YoY %QoQ Source: Thai Life Association and The Company First Year Premium +112.16% -1.70% Renewal Year Premium +8.62% -24.85% 4,562 Total Premium +23.24% -20.29% 3,637 2,951 2,933 TP 2,783 3,663 (Million Baht) 2,753 RYP 2,535 2,572 2,479 899 884 416 304 361 FYP 1Q13 2Q1
Slide 7: Product Mix
Product Mix FYP (%Growth) Proportion (%) Agent Channel 1Q14 1Q14 1Q13 Regular Endowment 50.14 36.41 51.54 Whole Life (34.09) 14.99 48.32 Single Premium 380,569 48.61 0.14 Total 112.55 100.00 100.00 FYP (%Growth) Proportion (%) Bancassurance 1Q14 1Q14 1Q13 Endowment 229.24 96.37 91.59 Credit Life 35.
Slide 8: Product Mix
Product Mix FYP (%Growth) Proportion (%) Total 1Q14 1Q14 1Q13 Endowment 218.35 96.02 90.39 Life Protection 35.17 3.40 7.53 Group Employee (22.10) 0.49 1.87 Others 40.67 0.10 0.21 Total 199.69 100.00 100.00 TP (%Growth) Proportion (%) Total 1Q14 1Q14 1Q13 Endowment 110.23 96.23 93.44 Life Protection
Slide 9: Channel Distribution
Channel Distribution First Year Premium Renewal Year Premium Total Premium 93% 78% 74% 85% 71% 49% 41% 22% 13% 17% 10% 13% 6% 9% 4% 13% 1% 2% Agent Banc Others 9
Slide 10: Premium Collection
Premium Collection Ordinary Ordinary (%) 1Q14 2013 2012 2011 94 94 93 96 AIA 92 90 92 89 91 92 92 90 91 90 92 86 AZAY 89 88 87 91 TLI 87 88 92 85 SCBLife 86 86 88 84 MTL 86 82 90 91 KTAL 82 89 92 85 OLIC 78 75 84 91 Industry 88 88 90 88 All Type 96 A ll Type (%) 1Q14 2013 2012 2011 93 93 93 88 90 90
Slide 11: Agency Force
Agency Force Persons 25,000 20,000 13,085 17,403 15,000 Registered agent 10,000 7,550 Active agent 5,000 2,409 New agent 2,662 - 259 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q14 Note : Active agent’s definition was changed in 2013 Persons Single License 600 482 505 = 72% of Target 500 400
Slide 12: Financial Position
Financial Position Unit : MB 1Q14 % 2013 % Chg. (MB) Total Assets 196,908 100.00 172,235 100.00 24,673 Investment 187,764 95.36 165,983 96.37 21,782 Net premises + equipment 336 0.17 327 0.19 9 premium receivable 4,107 2.09 1,840 1.07 2,267 Accrued Investment 2,498 1.27 1,863 1.08 636 Others 2,202 1
Slide 13: Assets & Investment Assets
ROI Assets & Investment Assets 95 96 96 96 96 95 94 91 93 MB +25,739 196,908 200,000 171,168 180,000 Avg. Total Asset growth: +26.21% 160,000 Avg. Total Inv.Asset growth: +26.63% 140,000 120,000 100,000 80,000 44,410 60,000 40,000 5,092 20,000 0 Investment Assets Total Assets Investment assets / Tot
Slide 14: Investments
Investments 8.3 7.0 6.9 6.5 ROI 5.5 5.8 5.8 5.3 4.8 5.1 5.0 6.4 6.7 4.8 5.6 5.5 5.4 5.5 4.7 187,764 2.3 28,590 ROI - Accounting ROI - MTM equity 14
Slide 15: Investments - Allocation
Investments - Allocation Unit Trust 3.36% Loans 2.11% Unit Trust 3.19% Loans 1.93% Stocks 7.80% Stocks 7.29% Debenture 22.11% Bond Debenture 23.87% Bond 63.50% 57.79% Short Term Bond Short Term 1.12% 66.97% 5.93% 2013 1Q14 Foreign G-Bond CB & TB SOE Foreign % on BBB+ to A+ Investment inv. assets Bon
Slide 16: Shareholders Equity
Shareholders Equity Unit : MB 1Q14 2013 2012 Total Equity 24,069 22,264 19,465 Paid-up Capital 1,212 1,212 1,205 Share Premium 2,847 2,846 2,759 Unrealized gain (loss) 5,084 4,391 5,153 Retain earnings 14,843 13,747 10,283 Others 82 67 64 Life Policy Reserve 160,235 137,638 112,337 Solvency Ratio (R
Slide 17: Underwriting Income Analysis
Underwriting Income Analysis Unit : MB 1Q14 1Q13 %YoY 2013 2012 %YoY Net Premium 26,729 12,994 105.70 38,513 34,121 12.87 Inc. Policy Reserve 22,432 9,919 126.15 25,076 22,866 9.66 % of net premium 83.92% 76.33% 65.11% 67.01% Benefits Payment 3,378 2,362 43.00 10,851 7,942 36.63 % of net premium 12.
Slide 18: Expenses - Reserve & Benefit Paid
Expenses - Reserve & Benefit Paid Quarterly Yearly 83.9 76.3 64.5 65.1 47.8 60.2 65.1 67.0 65.1 52.1 59.4 Reserve: Net Premium 93.29 Reserve: Net Premium 90.29 87.58 Baht Baht 84.88 94.62 87.18 Million 96.56 Million 95.21 85.50 94.56 94.62 88.53 Benefit Paid Reserve = Reserve& Benefit Paid : Net Pre
Slide 19: Operating Performance
Operating Performance 1Q14 1Q13 %YoY 2013 2012 %YoY Dividends 272 223 21.74 737 572 28.96 Interest & Discount Received 1,754 1,466 19.62 6,373 5,190 22.80 Capital Gain on Securities 66 216 -69.47 592 481 22.96 Total Investment Inc 2,091 1,905 9.77 7,702 6,243 23.38 Advanced Premium Exp. -12 -14 -18.
Slide 20: Investments - Income Breakdown
Investments - Income Breakdown 9.82 5.10 6.51 4.96 4.59 ROI 5.30 3.64 3.33 4.78 2.2 Cap Gains Dividend Interest ROI before AP-Accounting ROI before AP-MTM equity 20
Slide 21: Expenses - OPEX/Investment vs ROI
Expenses - OPEX/Investment vs ROI MB % MB 550 7 5.5 8.5 7.2 6.8 7.1 5.3 1,800 6.5 6.0 6.4 6.6 5.7 4.5 6 4.7 4.3 4.5 5.0 5 1,400 3.6 4 OPEX 400 1,000 1.9 3 2 600 1 250 0 200 1Q13 2Q13 3Q13 4Q13 1Q14 Operating expenses % on Net Premium Operating expenses % on Net Premium % 3.9 3.9 % 3.3 3.3 2.5 3.3 3.
Slide 22: Net Income
Net Income Net Income % Tax Rate 35 1Q134 %YoY %QoQ 29.4 30 27.4 26.9 Net Income 18.88 21.13 25.7 24.8 24.8 Comprehensive +17.64% YoY 25 -22.21 513.96 22.1 21.8 Income -47.52% YoY 20 17.5 16.1 6,895 15 4,381 ROE 3,724 % 3,618 35 2,299 30 31 28 1,453 1,789 1,101 1,096 24 25 905 25 23 922 22 23 512 52
Slide 23: Operating Highlights
Operating Highlights MB Asset Expense Ratio & Spread % % 220,000 10 6 202,000 3.3 3.6 3.8 3.9 3.8 3.3 184,000 2.8 3.2 3.3 2.5 166,000 8 1.2 1.6 1.7 2.2 2 148,000 130,000 6 112,000 -2 94,000 4 76,000 58,000 -6 40,000 2 22,000 4,000 0 -10 Investment Assets Total Assets Adjusted OPEX/Inv. Assets Net RO
Slide 24: Capital Adequacy Ratio: CAR (As of Mar 2014)
Capital Adequacy Ratio: CAR (As of Mar 2014) 20 18 17.12 15.63 16 14.80 14.39 14.74 14.28 13.76 13.50 14 12.68 12.28 140% 12 8.81 9.16 9.16 8.92 10.73 8.82 8.26 11.73 OIC 10 7.31 7.08 7.19 7.58 7.56 8.13 (Start Jan 1, 2013) 8 minimum 6 requirement 4 202% 197% 222% 252% 238% 274% 268% 265% 243% 244%
Slide 25: 2013 Embedded Value & Value of New Business
2013 Embedded Value & Value of New Business Reviewed By Ernst & Young Co., Ltd.
Slide 26: Embedded Value & Value of One year New Business
Embedded Value & Value of One year New Business Unit : MB 2013 2012 (%)+- Embedded value 32,641 30,610 +6.64% EV / Share (Baht) 26.94 25.40 Value of one year's new business 1,862 1,910 -2.51% Value of one year's new business / 1.54 1.59 Share (Baht) Number of shares (million shares) 1,212 1,205 Rema
Slide 27: Market Ranking
; USUN NSDINWUS:NUGScl 91Nd (NAWL) BANGKOK LIFE ASSURANCE PUBLIC COMPANY LIMITED — bd)
Slide 28: Ranking - Ordinary Premium 1Q14
Ranking - Ordinary Premium 1Q14 First Year Premium Total Premium Company MB Share (% ) % YoY Company MB Share (% ) % YoY BLA 14,162 36.68 218.59 BLA 25,999 22.48 110.12 MTL 8,529 22.09 56.62 AIA 22,917 19.82 2.88 SCBLife 3,393 8.79 78.87 MTL 18,412 15.92 38.30 TLI 2,991 7.75 16.91 TLI 12,416 10.74 1
Slide 29: Ranking - All Type Premium 1Q14
Ranking - All Type Premium 1Q14 First Year Premium Total Premium Company MB Share (% ) % YoY Company MB Share (% ) % YoY BLA 14,746 29.13 199.74 BLA 26,997 19.97 104.15 MTL 9,473 18.71 45.89 AIA 26,662 19.72 2.21 AIA 6,007 11.87 (11.67) MTL 19,951 14.76 34.26 SCBLife 4,444 8.78 6.65 TLI 13,876 10.27
Slide 30: Ranking - Bancassurance 1Q14
Ranking - Bancassurance 1Q14 First Year Premium Total Premium Company MB Share (% ) % YoY Company MB Share (% ) % YoY BLA 13,785 42.03 212.55 BLA 22,853 34.64 133.52 MTL 6,504 19.83 21.42 MTL 13,730 20.81 27.33 SCB Life 4,088 12.46 6.41 SCB Life 10,484 15.89 9.15 KTAL 2,444 7.45 20.19 KTAL 6,595 10.
Slide 31: Ranking - Agent 1Q14
Ranking - Agent 1Q14 First Year Premium Total Premium Company MB Share (% ) % YoY Company MB Share (% ) % YoY AIA 4,181 20.06 (13.84) AIA 24,134 36.12 2.61 MTL 2,728 13.09 207.37 TLI 11,737 17.57 13.18 TLI 2,640 12.67 26.59 MTL 5,383 8.06 61.40 KTAL 1,039 4.99 7.70 KTAL 3,822 5.72 16.95 BLA 889 4.27
Slide 32: Ranking - Credit Life (SP) 1Q14
Ranking - Credit Life (SP) 1Q14 1Q14 2013 Company MB Share (% ) % YoY % FYP Company MB Share (% ) % YoY % FYP AIA 1,391 18.56 (19.23) 23.16 SCBLife 7,417 21.51 15.26 40.68 SCBLife 990 13.21 (52.51) 22.28 AIA 5,948 17.25 36.34 22.13 PLT 933 12.45 476.11 39.64 MTL 3,705 10.74 (1.24) 13.42 KTAL 876 11.
Slide 33: Market Penetration - Thailand & Regional
Market Penetration - Thailand & Regional Thailand Source: The Thai Life Assurance Association , Dept. of Provincial Administration, Bureau of Saving and Investment Policy Number of Policy per Population (%) Total Premium per GDP (%) 31 31 29 3.72 27 3.44 25 3.12 24 2.93 22 2.87 21 19 2.33 2.35 2.38
Slide 34: Market Penetration - Thailand
Market Penetration - Thailand Sum insured per GDP (%) Sum insured per Population (Bht) Sum insured per Household (Bht) Note : * Sum Assured (Inforced) as of May 2013 Source: The Thai Life Assurance Association , Dept. of Provincial Administration, Bureau of Saving and Investment Policy 34 34
Slide 35: Q & A THANK YOU FOR YOUR SUPPORT
Q&A ขอบคุณที่ไววางใจเรา THANK YOU FOR YOUR SUPPORT
Bangkok Life Assurance Public — Q1 2014 Earnings Presentation on 6ix