Bangkok Life Assurance Public Co., Ltd. · SET:BLA
Bangkok Life Assurance Public — Q3 2021 Earnings Presentation
26 slides from Bangkok Life Assurance Public's earnings presentation, Nov 15, 2021
Slide 1: 3Q21 Analyst Presentation
3Q21 Analyst Presentation 15 November 2021
Slide 2: Agenda
Agenda 1 3Q21 and 9M21 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
Slide 3: Synopsis of 3Q21 performance
Synopsis of 3Q21 performance • 3Q21 profit: Net profit +102% YoY due to higher investment income and lower UW expense. Net profit +57% QoQ due mainly to higher RYP and higher investment income. • FYP: BLA -54% vs. industry -2%. • Bancassurance: FYP -67% YoY due to the high base from tactical product
Slide 4: Synopsis of 9M21 performance
Synopsis of 9M21 performance • 9M21 profit: Net profit +103% YoY due to higher RYP and no extra provision for PAD reserve • FYP: BLA -13% vs. industry +7%. Excluding SP, BLA -16% vs. industry -10%. • Bancassurance: FYP -25% YoY due to high base and impact from Covid • Agent: FYP +9% YoY. Strong perf
Slide 5: Agenda
Agenda 1 3Q21 and 9M21 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
Slide 6: 3Q21: FYP -54% due to high base for Banca in the previous year
3Q21: FYP -54% due to high base for Banca in the previous year RYP remains unaffected by Covid-19 and increased 23% YoY FYP RYP TP -54% +23% -1% Unit : Million Baht 3,005 8,339 9,802 9,719 6,798 Bancassurance 50% 62% 61% 62% 64% 86% 1,380 Agent Channel Others 63% 46% 35% 35% 34% 12% 29% 8% 4% 3% 4%
Slide 7: 9M21: FYP -13% due to high base for Banca in the previous year
9M21: FYP -13% due to high base for Banca in the previous year RYP and TP increased 8% YoY and 4% YoY respectively FYP RYP TP -13% +8% +4% Unit : Million Baht 5,355 21,344 23,070 26,699 27,722 4,651 Bancassurance 70% 61% 55% 60% 58% 60% Agent Channel Others 39% 35% 35% 34% 22% 28% 8% 11% 6% 5% 7% 6%
Slide 8: Banc: 3Q21 FYP -67% YoY due to the high base last year as well as Covid
Banc: 3Q21 FYP -67% YoY due to the high base last year as well as Covid lockdown impact on branch closure/change in operating hours New Business Premium New Business Premium Product Mix Bancassurance Bancassurance Unit : Million Baht -54% -67% 3,005 8% 2,597 28% Others Bancassurance MRTA Par Agent C
Slide 9: Banc: 9M21 FYP -25% YoY as sales slowed during the lockdown period
Banc: 9M21 FYP -25% YoY as sales slowed during the lockdown period Endowment product contribution declined further to 15% of FYP New Business Premium New Business Premium Product Mix Unit : Million Baht Bancassurance Bancassurance -13% -25% 5,355 3,747 16% 23% 4,652 Others 2,815 Bancassurance MRTA 7
Slide 10: Agent: 3Q21: +12%YoY, Rider attachment increased to 34%
Agent: 3Q21: +12%YoY, Rider attachment increased to 34% New Business Premium New Business Premium Product Mix Unit : Million Baht Agent Channel Agent Channel -54% +12% 2% 2% 3,005 404 360 25% 21% Pension, Term & PA Bancassurance 15% 23% Endowment Agent Channel Par 86% 1,380 Others Whole Life 63% 58%
Slide 11: Agent: 9M21: +9%YoY with higher sales from Par and health products
Agent: 9M21: +9%YoY with higher sales from Par and health products New Business Premium New Business Premium Product Mix Unit : Million Baht Agent Channel Agent Channel -13% +9% 5,355 2% 3% 1,201 1,305 4,652 23% 31% Pension, Term & PA Bancassurance 17% 70% 61% 6% Endowment Agent Channel Par Others W
Slide 12: 9M21: Alternative channel shows strong overall performance
9M21: Alternative channel shows strong overall performance Strong performance for Group FYP (+47%YoY) FYP from Direct Marketing is relatively flat. 9M21 FYP Online FYP growth is more than tripled FYP in Partnership nearly doubled due to new partners BLA joined hands with Shopee and starts generating
Slide 13: Agenda
Agenda 1 3Q21 and 9M21 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
Slide 14: 3Q21 lowered cash to invest in fixed income as yield improved
3Q21 lowered cash to invest in fixed income as yield improved Investment asset remain unchanged, 1) Market price closed flat QoQ 2) FYP affected by lockdown Asset Class 2Q21 3Q21 Remark Short-term Investment 3.8% 3.1% Cash decreased due to investment in fixed income Bond 48.5% 48.9% Increase allocat
Slide 15: 3Q21 investment income +21.4% YoY, higher realized gain was a key factor
3Q21 investment income +21.4% YoY, higher realized gain was a key factor Investment yield was slightly higher QoQ Investment income (Million Baht) INVESTMENT INCOME: 3Q21 +21.4% YoY and +7.4% QoQ +21.4% YoY • The YoY increase is from a combination of higher realized gain and dividend income. +7.4% Q
Slide 16: CAR increased from 295% in the previous quarter to 299%
CAR increased from 295% in the previous quarter to 299% The reasons are 1) Company’s profitability 2) Benefit from yield movement 274% 284% 295% 299% 263% Total Capital Required (TCR) Risk charged by type to TCR 1.8% Operation Risk 13.1% REITs Risk 3Q20 4Q20 1Q21 2Q21 3Q21 38.6% Equity Risk Company
Slide 17: Agenda
Agenda 1 3Q21 and 9M21 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
Slide 18: Statement of financial positions
Statement of financial positions 30 Sep 21 31 Dec 20 +/- MB % MB % MB % Assets Cash and cash equivalents 9,159 3% 8,072 2% 1,086 13% ASSETS increased by 10,279 MB Investment assets 330,558 94% 322,141 95% 8,418 3% Increase in total asset YTD is driven by Other assets 10,340 3% 9,565 3% 775 8% increa
Slide 19: 3Q21 Financial summary
3Q21 Financial summary Million Baht 3Q21 % of TNP 3Q20 % of TNP %YoY 9M21 % of TNP 9M20 % of TNP %YoY 3Q21 First year premium 1,380 14% 3,005 31% -54% 4,651 18% 5,355 21% -13% TNP -2% mainly from FYP -54%. Renewal premium 8,339 88% 6,798 70% 23% 23,070 87% 21,344 83% 8% Investment income +32% from g
Slide 20: Agenda
Agenda 1 3Q21 and 9M21 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 20
Slide 21: 3. Outlook by CEO
3. OUTLOOK BY CEO 21
Slide 22: Selected into the list of sustainable stocks (Thailand Sustainability Investment 2021)
Bangkok Life Assurance has been selected into the list of sustainable stocks Awarded “Life Insurance Company with Outstanding Management for 2020” (Rank 2) (Thailand Sustainability Investment 2021) 22
Slide 23: Looking ahead in 4Q21 and 2021
Looking ahead in 4Q21 and 2021 1 2 3 Products Sales & Channels Claim management • Unit-Linked official launched in Oct • First product launch with AIS on 4th • Overall claim still manageable Nov 2021 and expect soften Covid-claim in 4Q21 4 Customer • New partners are coming in • Launched a comprehen
Slide 24: Agenda
Agenda 1 3Q21 and 9M21 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 24
Slide 25: Q&A
Q&A 25
Slide 26: Bangkok Life contact details
Nsvinw Us=nuson BANGKOK LIFE Ins. 02-777-8888 / wWnd 02-777-8899 www.bangkoklife.com
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