SBI Life Insurance Co. Ltd. · NSE:SBILIFE
SBI Life Insurance — Investor Presentation (September 2021)
42 slides from SBI Life Insurance's investor presentation, September 2021
Slide 1: SBI Life Insurance Performance Update – September 2021
SBI LIFE INSURANCE Performance Update – September 2021 F I N A N C I A L I M M U N I T Y
Slide 2: Agenda
AGENDA I Performance update II Focus areas and initiatives III Industry overview IV Annexure 2
Slide 3: Resilient business model creating long term value
Resilient business model creating long term value Well positioned to maintain steady growth and long term consistent returns Geographically diverse Sustainable Value Accretion 2 lacs+ trained insurance personnel distribution network – 947 own ` 12.22 billion - value of new business addressing custom
Slide 4: Delivered strong performance
Delivered strong performance Overall business grew steadily ` in billion New Business Premium New Business APE ` ` 102.9 (14% Y-o-Y) ` 56.0 (41% Y-o-Y) CAGR 17% CAGR 18% Profit after Tax Value of New Business ` 4.7 (-32% Y-o-Y) ` 12.2 CAGR 2% +64% Y-o-Y Individual Rated Renewal Premium Premium ` 128
Slide 5: Capturing growth in a rapidly changing environment
Capturing growth in a rapidly changing environment Consistent and sustainable growth in New Business and Renewal Collection ` in billion GWP 329.9 406.3 502.5 207.3 231.0 11% 42.1 48.5 56.6 296.3 128.1 9% 117.3 27.5 240.4 26.1 192.0 24.1 81.3 38.1 11.7 53.5 47.9 41.6 7.3 4.0 112.4 125.0 64.8 54% 96.
Slide 6: Product portfolio
Product portfolio Gained momentum across all segments NBP Individual NBP ` in billion Protection 12% 13% 12% 10% 12% 4% 5% 6% 6% 6% 30% 49% 41% 45% 53% 72% 68% 65% 70% 76% 65% 34% 44% 54% 52% 6% 18% 24% 27% 25% 13% 5% 4% 3% 18% 10% 7% 8% 9% 5% FY 19 FY 20 FY 21 H1 FY 21 H1 FY 22 FY 19 FY 20 FY 21 H1
Slide 7: Robust growth across all channels
Robust growth across all channels Prominent value creation capability ` in billion NBP Individual NBP 137.9 165.9 206.2 90.0 102.9 96.4 112.4 125.0 42.1 64.8 1% 4% 7% 6% 8% 15% 20% 27% 30% 30% 38% 29% 28% 28% 29% 21% 20% 17% 19% 13% 64% 69% 67% 65% 66% 63% 60% 56% 49% 51% FY 19 FY 20 FY 21 H1 FY21 H
Slide 8: Unparalleled distribution reach
Unparalleled distribution reach Quality and scale of multichannel distribution platforms enabling wider presence NBP – Protection Share Productivity per branch1 Ticket size2 Bancassurance 18% 91k 37 lacs (16%) (79k) NBP – Protection Share Productivity per agent Ticket size1 Agency 3% 71k 2.4 lacs (4
Slide 9: Cost efficiency and profitability
Cost efficiency and profitability Maintaining high levels of cost efficiencies to maintain profitability ` in billion Total 96.6 109.1 10.5% 9.9% 8.3% 8.6% 9.5% Net-worth 75.8 87.4 104.0 Cost Ratio 100% 6.3% 5.9% 5.8% 90% 5.4% 80% 4.8% 70% 4.2% 4.0% 3.5% 3.6% 60% 3.2% 50% 6.9 14.6 40% 14.2 4.7 30% 1
Slide 10: Value of New Business (VoNB) Movement
Value of New Business (VoNB) Movement ` in billion VoNB margin growth of 300 bps from 18.8% to 21.8% VoNB - 4.0% (1.6%) 0.7% 21.8% 18.8% Margin1 2.2 0.4 12.2 3.1 (0.9) 7.5 Opening VoNB as on H1 Impact of Business New Business Mix & Change in Operating Change in Economic Closing VoNB as on H1 FY 21 V
Slide 11: Strong focus on customer service
Strong focus on customer service Deeper relationship with customers through quality underwriting and strong sales ethos Persistency1 86.1% 87.9% 85.9% 87.7% 78.5% 79.4% 78.8% 79.8% 71.6% 74.1% 72.1% 75.0% 67.3% 68.1% 66.3% 69.3% 59.9% 61.6% 60.9% 60.7% 13th Month 25th Month 37th Month 49th Month 61s
Slide 12: Asset under Management
Asset under Management Continue to be one of the top private player in terms of AUM AuM – Linked | Non Linked Composition of Asset under Management ` in billion 1,410 1,604 2,209 2,442 Equity 4% 3% Growth of 31% in AUM vis-à-vis Government H1 FY21 89:11 51% 89:11 51% 88:12 47% 89:11 47% 30% securiti
Slide 13: COVID Claims
COVID Claims Increase in claims due to impact of second wave of COVID-19 COVID Death Trend 4,48,372 4,04,308 ❑ 82% decrease in number of deaths in India from Q1-FY22 to Q2-FY22 1,50,036 1,64,108 99,366 17,463 ❑ 1.49x increase in number of claims reported from Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-2
Slide 14: Focus areas and initiatives
AGENDA I Performance update II Focus areas and initiatives III Industry overview IV Annexure 14
Slide 15: Key Focus Areas
Key Focus Areas Disciplined Business Customer Operational Digital Capabilities Focus Engagement Efficiencies Enhancing the core - Use of analytics - Leveraging Best in Harnessing technology Widespread distribution enabling better class cost ratio in strengthening network & product suite customer eng
Slide 16: Digital Transformation: Seamless On-Boarding of Customers
Digital Transformation Seamless On-Boarding of Customers Business Process – Simple and Intuitive Experience E-Submission E-Payment E-Verification E-Policy ❑ Need based analysis – product ❑ Multiple payment options ❑ Video based verification process ❑ E-policy on Registered mobile recommendation ❑ On
Slide 17: Digital Transformation: Distributors On-Boarding, Training & Performance dashboard
Digital Transformation Distributors On-Boarding, Training & Performance dashboard Mobile app for Hierarchy based Easier, concise & on sales force Real-time Dashboard the fly information for integrated with CRM for monitoring new business as well & Call enter productivity & activity as renewal follow
Slide 18: Digital Transformation: Customer Self Service portals
Digital Transformation Customer Self Service portals Instant Connect – Self service options Buy Online Products Revival Requests Fund Switches Query and Complaints Renewal premium payment Product Corner Premium Calculators e-COE (Certificate of Existence) Updation of personal details Need Analysis P
Slide 19: Digital Quotient: Leading to greater shared outcomes
Digital Quotient: Leading to greater shared outcomes 51k + active users 17k+ app 3600 overview 1.9 lac+ proposals downloads Empowering Tablet based Digitization of Business performance Provides access of key Distributors application to sell policy proposal filling form & trends for partners business
Slide 20: Industry overview
AGENDA I Performance update II Focus areas and initiatives III Industry overview IV Annexure 20
Slide 21: India Life Insurance - Structural Growth Drivers in Place
India Life Insurance - Structural Growth Drivers in Place Strong Demographic Tailwinds Supporting India Growth Story Composition of Population2 Share of urban population3 Life Insurance DensityUS$3 4528 7% 8% 10% 13% 40.1% 31% 34% 34.9% 37% 30.9% 40% 27.7% 28% 2050 28% 26% 24% 35% 31% 27% 24% 244 24
Slide 22: Life Insurance – Significant Under Penetration versus other Markets
Life Insurance – Significant Under Penetration versus other Markets Share of Life Insurance in Savings expected to Rise Underpenetrated Insurance Market Premium as % of GDP – 20201 Protection gap highest amongst peers2 7.60% 6.40% 83% 76% 71% 70% 55% 55% 4.00% 3.20% 2.40% 1.40% Singapore South Malay
Slide 23: Protection – the next growth driver
Protection – the next growth driver Share of Protection in Life Insurance business is expected to Rise Scope of Protection business Addressable Population1 Mortality Protection Gap (in US$ trillion)1 35.6 Population of India 1320 Mn 26.8 Bank Accounts 1050 Mn PAN Card 440 Mn 16.5 Tax Return 59 Mn 8.
Slide 24: Retirement solutions - Annuities
Retirement solutions - Annuities Share of 60+ population to increase significantly by 2050 Scope of Annuities business Life Expectancy (years)1 Ageing Population1 75.0 9% 19% 71.9 62% 67.6 62% 29% 19% 2015 2035 2055 2015 2050 Age < 15 yrs Age 15-59 yrs Age 60+ yrs • With the advancement of medical s
Slide 25: Financialisation of Savings
Financialisation of Savings Share of Life Insurance in Household Savings expected to Rise Increasing in Financial Savings Household Savings Composition1 Share of Insurance in Financial Savings1 17% 17% 24% 23% 2% 7% 55% 17% 3% 8% 63% 62% 60% 18% 23% 17% 64% 55% 51% 53% 45% 40% 37% 38% FY14 FY16 FY18
Slide 26: Industry Composition
Industry Composition Product mix and Channel mix Product portfolio1 Industry Private Players 13% 13% 11% 10% Higher ULIP contribution 38% 34% 29% 44% among private players, though traditional 87% 87% 89% 90% 62% 66% 71% products forms the major 56% share of new business FY 2018 FY 2019 FY 2020 FY 20
Slide 27: Financial Immunity
Financial Immunity Understanding Consumer’s attitude towards financial security1 Consumer profile 55 % 45 % 42 38 Average monthly personal 20 income ~ 62k 75% 25% 25-35 36-45 75% 87% 67% School/ College Graduates Post Graduates years years Gender Age Durable ownership Level of Education Personal Mon
Slide 28: Annexure
AGENDA I Performance update II Focus areas and initiatives III Industry overview IV Annexure 28
Slide 29: Annualised Premium Equivalent (APE)
Annualised Premium Equivalent (APE) APE Product mix and Channel mix ` in billion Product portfolio Y-o-Y Mix Segment FY 19 FY 20 FY 21 H1 FY 21 H1 FY 22 Growth (H1 FY 22) Individual Savings 87.0 93.0 94.6 30.0 46.0 53% 82% - Par 18.1 11.7 9.7 3.5 3.3 (6%) 6% - Non Par 0.2 6.5 10.7 4.2 5.3 27% 9% - U
Slide 30: Individual Annualised Premium Equivalent (APE)
Individual Annualised Premium Equivalent (APE) Individual APE – Channel Mix Segment wise ` in billion Y-o-Y Mix Channel Segment FY 19 FY 20 FY 21 H1 FY21 H1 FY22 Growth (H1 FY22) Participating 9.9 4.6 2.8 1.0 0.9 (15%) 2% Non Participating 3.5 9.1 13.7 5.0 6.8 35% 13% Bancassurance Unit Linked 49.0
Slide 31: Sensitivity Analysis
Sensitivity Analysis Scenario Change in EV % Change in VoNB % Reference Rate +100 bps (3.0%) (1.0%) Reference Rate -100 bps 3.1% 0.9% On effective tax rate basis Decrease in Equity Value 10% (1.6%) (0.2%) Proportionate change in lapse rate +10% (1.1%) (3.8%) IEV ` 384.9 bn Proportionate change in la
Slide 32: Persistency - Regular Premium
Persistency - Regular Premium Quality Underwriting and Customer Retention Persistency1 83.2% 84.7% 76.2% 76.0% 72.0% 69.9% 67.4% 62.3% 50.0% 47.4% 13th Month 25th Month 37th Month 49th Month 61st Month H1-FY21 H1-FY22 1. The persistency ratios are calculated as per IRDAI circular no. IRDAI/F&A/CIR/M
Slide 33: Environment
Environment Fulfilling our Responsibility towards the Planet Corporate office building is a Green Reduction in paper usage and recycling Building, certified by Indian Green of waste paper. Building Council, to comply with 99% of new individual policies sourced efficient use of natural resources and
Slide 34: Social
Social Enabling an Inclusive World Building insurance awareness & CSR activities covering healthcare, providing insurance solutions tailored to education, rural development, disaster the needs of the people residing in rural relief & skill development. areas & social sector 440,907 policies issued i
Slide 35: Governance
Governance Driving Trust through Transparency Clearly defined norms for Data Independent diversified Board, various protection/handling, cyber security, risk committees headed by independent framework; periodic review & update; directors; evaluation framework for information security management dire
Slide 36: Customer Age and Policy Term
Customer Age and Policy Term1 Average customer age in years Average policy term in years Par 36 Par 15 Protection 37 Protection 28 ULIP 43 ULIP 12 Non Par - Others 40 Non Par - Others 20 Overall 40 Overall 18 36 1. Age and term for individual products for H1 FY 22.
Slide 37: Revenue and Profit & Loss A/c
Revenue and Profit & Loss A/c ` in billion Particulars FY 20 FY 21 H1 FY 21 H1 FY 22 Premium earned 406.3 502.5 207.3 231.0 Premium on reinsurance ceded (3.1) (4.9) (2.9) (1.2) Net premium earned 403.2 497.7 204.5 229.7 Investment income1 33.4 323.4 145.9 187.2 Other income 0.5 0.4 0.2 0.3 Total inc
Slide 38: Balance Sheet
Balance Sheet ` in billion Particulars FY 20 FY 21 H1 FY 22 SOURCES OF FUNDS Share Capital 10.0 10.0 10.0 Reserves and Surplus 78.8 90.9 95.7 Credit/(Debit) Fair Value Change Account (1.4) 3.1 3.4 Sub-Total 87.4 104.0 109.1 Credit/(Debit) Fair Value Change Account (15.9) 27.3 37.2 Policy Liabilities
Slide 39: Abbreviations
Abbreviations Term Description Term Description GWP Gross Written Premium Opex Operating Expenses (excluding commission) NBP New Business Premium CAGR Compounded Annual Growth Rate NOP Number of Policies GDP Gross Domestic Product APE Annualized Premium Equivalent INR (`) Indian Rupees IRP Individua
Slide 40: Glossary
Glossary ⚫ New Business APE: The sum of annualized first year premiums on regular premium policies, and 10.00% of single premiums, written by the Company during the fiscal year from both retail and group customers. ⚫ New Business Premium (NBP): Insurance premium that is due in the first policy year
Slide 41: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this presentation which contain words or phrases such as 'will', 'would', ‘indicating’, ‘expected to’ etc., and similar expressions or variations of such expressions may constitute ‘forward-looking statements'. These fo
Slide 42: Thank you
Thank you Investor Relations Contact: SBI Life Insurance Co Ltd Fifth Floor, Natraj, M V Road & Western Expressway Highway , Andheri (E), Mumbai Dial - +91 22 6191 0281/ 0399 Email – investorrelations@sbilife.co.in 42 Website – www.sbilife.co.in
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