Slide 1: VitalityLife Overview
VitalityLife Overview June 2019 Herschel Mayers CEO VitalityLife and VitalityInvest
Slide 2: Our Core Purpose
Our Core Purpose To make people Members Improved health, better value through improved price and benefits healthier, and enhance and protect their lives Society Healthier society Insurer Lower claims Improved productivity Higher margins Reduced healthcare Positive selection burden and lower lapses
Slide 3: Evolution of Vitality UK
Evolution of Vitality UK Organic growth Integration Brand development, rapid innovation & migration to single platform HEALTHY 2014 2016 MIND 2007 2004 2010 2015 TODAY 10 years 4 years
Slide 4: Characteristics of the UK protection market
Characteristics of the UK protection market Large term and critical illness cover Increasingly price competitive Lack of innovation has led to a market commoditized market 3% Typical Life Insurance Policy: 9% Change in Term Assurance Prices 2% (Indexed to 2002 in real terms) Term Level life cover as
Slide 5: Evolution of VitalityLife Product and Service offering
Evolution of VitalityLife Product and Service offering Success from innovations based on customer learnings and adaptability to changing market needs >540k 2007 2009 2010 2011 2013 2014 2016 2017 2018 Continuous Cover Essentials SIC Premium Saver VITALITY LifestyleCare WELLNESS OPTIMISER LITE DEMENT
Slide 6: A Global First: Dementia and FrailCare Cover
A Global First: Dementia and FrailCare Cover Premium No additional continues as SIC policies with VO Cover for UW or extra normal after or WO are eligible Life premium term cover ends Dementia and FrailCare Cover Guaranteed Funeral Cover 10% Dementia Alzheimer’s Parkinson’s 50% 4 of remaining SIC be
Slide 7: Multi-channel distribution
Multi-channel distribution
Slide 8: D2C performance to date
D2C performance to date H1 2019 D2C sales were £3.2m £1,000,000 51% on last year This is up 25,000 £900,000 D2C now contributing 10% of all sales £800,000 20,000 £700,000 £600,000 15,000 £500,000 £400,000 10,000 £300,000 Total Sales APE Total Leads £200,000 5,000 £100,000 £0 -
Slide 9: We have seen significant member engagement
We have seen significant member engagement >11k >64k 300k Vitality Age Ocado deliveries Apple Watch Orders completions >640k >132bn >900k Cinema codes Gym visits Steps walked >980k >60k Coffees awarded Food packs Engagement statistics for July 2018 – December 2018
Slide 10: Engaged members earn significant value
Engaged members earn significant value Average Vitality savings and rewards compared to premium Bronze Silver Gold Platinum 8% 51% 77% 121% £53 £332 £499 £650 £650 £650 £650 £597 £787 £318 £151 -£137 Gross Vitality Effective Gross Vitality Effective Gross Vitality Effective Gross Vitality Effective
Slide 11: Engagement leading to better outcomes
Engagement leading to better outcomes More engagement less Serious Illness Cover Status Gym user Over 50% Over 40% Less claims per Less claims per member when member when Silver status or regular gym usage2 above1 Bronze Silver, gold No gym Regular gym and Platinum 1Based on Serious Illness and In
Slide 12: Key performance to date
Key performance to date New business +8% +4% Operating profit +15% +11% Value in force +38% +28% to R600m to £32.8m to R300m to £16.4m to R6.2bn to £339m 77% of New GBP millions GBP millions Business written is GBP millions Optimised H1 2015 H1 2016 H1 2017 H1 2018 H1 2019 H1 2015 H1 2016 H1 2017 H1
Slide 13: VitalityLife Overview
VitalityLife Overview June 2019 Herschel Mayers CEO VitalityLife and VitalityInvest