Sbi Life Insurance Co. Ltd. · NSE:SBILIFE
Sbi Life Insurance — H1 FY2024 Earnings Presentation
48 slides from Sbi Life Insurance's earnings presentation, Oct 28, 2023
Slide 1: Cover letter to NSE and BSE
October 27, 2023 SBIL/CS/NSE-BSE/2324/162 Assistant Vice President General Manager Listing Department, Listing Department, National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, BKC, Dalal Street, Bandra (East), Mumbai 400051 Mumbai 4
Slide 2: Performance for the half year ended September 30, 2023
News Release October 27, 2023 BSE Code: 540719 NSE Code: SBILIFE Performance for the half year ended September 30, 2023 Private Market leadership in Individual New Business Premium of ` 101.7 billion with 20% growth and 27.3% market share Annualized Premium Equivalent (APE) stands at ` 82.6 bill
Slide 3: Key financial ratios and business growth
Particulars H1 FY 2024 H1 FY 2023 YoY VoNB per Share (in ` ) (VoNB / Number of Shares) 23.6 21.2 - New Business Margin (VoNB Margin) 28.6% 31.0% - Key Financial Ratios Operating expense ratio 3 5.4% 5.6% - Commission ratio 4 4.6% 4.5% - Total cost ratio5 10.0% 10.2% - Persistency Ratios - Premium Ba
Slide 4: Gross written premium and distribution network
Gross Written Premium (GWP) has grew by 21% to ` 337.3 billion in H1 FY 24 mainly due to 28% growth in Single Premium (SP) and 17% growth in Renewal Premium (RP) in H1 FY 24. Distribution network The Company has strong distribution network of 305,320 trained insurance professionals consisting of
Slide 5: Assets under management and financial position
Assets under Management AuM grew by 22% from ` 2,826.3 billion as on September 30, 2022 to ` 3,451.5 billion as on September 30, 2023 with debt-equity mix of 68:32. Over 95% of the debt investments are in AAA and Sovereign instruments. Financial position The Company’s net worth increased by 14%
Slide 6: Definitions and About SBI Life Insurance
Value of New Business Margin / VoNB Margin: VoNB Margin is the ratio of VoNB to New Business Annualized Premium Equivalent for a specified period and is a measure of the expected profitability of new business. Solvency Ratio: Solvency ratio means ratio of the amount of Available Solvency Margin
Slide 7: Disclaimer
Disclaimer Except for the historical information contained herein, statements in this release which contain words or phrases such as 'will', ‘expected to’, etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements in
Slide 8: Investor Presentation Performance Update September 2023
Investor Presentation Performance Update I September 2023
Slide 9: Contents
Contents 1Key Indicators 2 Company & Highlights Performance 3 Focus areas and 4 Macro Economic Indicators initiatives & Industry Overview 5 Annexure 2
Slide 10: Resilient business model creating long term value
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Resilient business model creating long term value Trained Human 3.1 lacs Technological 99.1% Capital insurance personnel, Innovation individual applications focus on nee
Slide 11: Highlights for 1H FY24
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Highlights for 1H FY24 ` in billion New Business Premium New Business APE Profit after Tax Growth Growth Growth +24% +21% +19% ` 162.6 ` 82.6 ` 7.6 CAGR CAGR CAGR 24% 17
Slide 12: Path travelled over last 7 Years
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Path travelled over last 7 Years New Business Premium Individual New Business Premium 7Yr CAGR 5Yr CAGR 3Yr CAGR Growth 7Yr CAGR 5Yr CAGR 3Yr CAGR Growth Industry 11% 11
Slide 13: Continues to deliver on long term growth vision
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Continues to deliver on long term growth vision ` in billion in million 21% Individual Policies GWP 502.5 587.6 673.2 279.7 337.3 2.2 1.9 6% 1.7 0.9 1.0 377.3 333.0 17%
Slide 14: Stable distribution mix and driving balanced product mix
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Stable distribution mix and driving balanced product mix ` in billion Channel Mix NBP Individual NBP 206.2 254.6 295.9 130.9 162.6 125.0 165.0 209.1 84.6 101.7 7% 8% 10%
Slide 15: Unparalleled distribution reach
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Unparalleled distribution reach Pillars of distribution network Bancassurance Agency Institutional Alliance Direct & Corporates ▪ 27,000+ SBI & RRB Bank ▪ 2,36,900+ Agen
Slide 16: Product portfolio
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Product portfolio ` in billion Y-o-Y Mix Product Mix1 FY 21 FY22 FY23 H1 FY23 H1 FY24 Growth H1 FY24 Savings 105.7 137.8 157.5 64.0 73.0 14% 45% - Par 9.7 7.7 9.5 4.2 4.
Slide 17: Wide product offerings
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Wide product offerings Child Education 36 8% Financial Security 37 27% Care free Retirement 55 10% Protection 37 26% Wealth Creation Average Age % share in policies 38 2
Slide 18: Cost efficiency, Profitability & Value
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Cost efficiency, Profitability & Value ` in billion Opex Ratio : Maintaining Cost efficiency Profit after Tax : Consistent growth in profit Total Cost Ratio1 8.3% 8.8% 9
Slide 19: Strong focus on customer service
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Strong focus on customer service Persistency1 85.2% 85.5% 85.2% 85.4% 78.1% 75.6% 77.5% 76.7% 72.1% 74.5% 72.9% 73.6% 69.9% 70.3% 70.3% 71.2% 55.6% 52.5% 57.5% 49.5% 13t
Slide 20: Indian Embedded Value
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Indian Embedded Value ` in billion EVOP ` 44.4 billion ROEV 20.2% 1.1 7.6 0.1 19.7 23.6 460.4 512.6 IEV as on Mar'23 VoNB Unwinding Operating Experience Economic Assumpt
Slide 21: Value of New Business Movement
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Value of New Business Movement ` in billion VoNB margin stands at 28.6% 31.0% - (2.4%) 0.9% (0.9%) 28.6% VoNB Margin (2.0) 0.7 (0.7) 4.4 23.6 21.2 H1 FY23 Impact of Busi
Slide 22: Asset under Management
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Asset under Management ` in billion AuM – Linked | Non Linked Composition of Asset under Management 2,209 2,674 3,073 2,826 3,451 Equity 3% 88:12 90:10 92:8 92:8 92:8 2%
Slide 23: Key Focus Areas
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Key Focus Areas Widespread distribution ❖ 1,011 offices (39% in rural & semi urban areas) & 40k+ branches network & product suite to cater ❖ 4.8mn times customers served
Slide 24: Digital @ SBI Life
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Digital @ SBI Life Digital Digital & Distributor Simplified Ecosystem Enablers Customer Journey Becoming a digital-first organisation Performance Processes Product Impro
Slide 25: Digital Ecosystem
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Digital Ecosystem Flexibility 770 BITSIGHT SCORE Robustness • 914 varied product features Servicing 63.1mn built in PMS Inforce Lives • 21 products in group policy syste
Slide 26: Digital Enablers
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Digital Enablers Centralised IT Service One view dashboard for Management, Digital critical application Onboarding Workflow, IT monitoring (Uptime, Asset Management and
Slide 27: Distributor Enablers
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Distributor Enablers Establishing a robust distributor ecosystem 80+ new reports on Launched Mconnect Integrated Mconnect with Aaram Nxt and Aasaan PWA and Revamp campai
Slide 28: Simplified Customer Journey
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Simplified Customer Journey Prospecting Onboarding Underwriting Executing a focused Enhancing the process & Issuance strategy to evolve it into for greater efficiency, I
Slide 29: Simplified Customer Journey
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Simplified Customer Journey Policy Servicing Renewals Claim Payouts Dual benefits of offering Automating tasks, Accelerating personlised services whilst utilising data c
Slide 30: India Life Insurance - Structural Growth Drivers in Place
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview India Life Insurance - Structural Growth Drivers in Place Composition of Population1 India’s share of urban population2 Life Insurance DensityUS$3 5414 52.8% 46.4% 6.6%
Slide 31: Life Insurance – Significant Under Penetration versus other Markets
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Life Insurance – Significant Under Penetration versus other Markets Underpenetrated Insurance Market Premium as % of GDP – 20211 Protection gap highest amongst peers2 Su
Slide 32: Protection – the next growth driver
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Protection – the next growth driver Scope of Protection business Addressable Population1 Mortality Protection Gap (in US$ trillion)1 35.6 Population of India 1320 Mn Ban
Slide 33: Retirement solutions - Annuities
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Retirement solutions - Annuities Scope of Annuities business Pension Assets/GDP ratio1 (2021) Ageing Population2 Life Expectancy at 603 213.3% 9% 19% 22 22 152.6% 20 19
Slide 34: India’s Growth Prospects & Financialization of Savings
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview India’s Growth Prospects & Financialization of Savings Increasing in Financial Savings 6.7% Fastest growing G20 Economy3 Share of Life Insurance in Financial Savings1 Av
Slide 35: Industry Composition
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Industry Composition Product portfolio1 Industry Private Players 13% 13% 11% 10% 11% 38% 34% 29% 29% Higher ULIP contribution 44% among private players, though 87% 87% 8
Slide 36: Annualised Premium Equivalent (APE)
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Annualised Premium Equivalent (APE) ` in billion Y-o-Y Mix Segment FY 21 FY 22 FY 23 H1 FY 23 H1 FY 24 Growth (H1 FY24) Individual Savings 94.6 118.7 139.8 55.3 64.7 17%
Slide 37: Individual Annualised Premium Equivalent (APE)
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Individual Annualised Premium Equivalent (APE) ` in billion Y-o-Y Mix Channel Segment FY 21 FY 22 FY 23 H1 FY 23 H1 FY 24 Growth (H1 FY24) Participating 2.8 1.9 3.4 1.6
Slide 38: Sensitivity Analysis
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Sensitivity Analysis Scenario Change in VoNB % Change in IEV % Reference Rate +100 bps (1.0%) (3.7%) Reference Rate -100 bps 1.0% 3.4% Decrease in Equity Value 10% (0.2%
Slide 39: Customer Age and Policy Term
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Customer Age and Policy Term Average customer age in years Average policy term in years Par 36 Par 19 Protection 37 Protection 13 ULIP 40 ULIP 13 Non Par - Others 40 Non
Slide 40: Revenue and Profit & Loss A/c
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Revenue and Profit & Loss A/c ` in billion Particulars FY22 FY23 H1 FY23 H1 FY24 Premium earned 587.6 673.2 279.7 337.3 Premium on reinsurance ceded (3.3) (7.3) (4.6) (5
Slide 41: Balance Sheet
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Balance Sheet ` in billion Particulars FY22 FY23 H1 FY24 SOURCES OF FUNDS Share Capital 10.0 10.0 10.0 Reserves and Surplus 104.2 119.2 127.0 Credit/(Debit) Fair Value C
Slide 42: Environment, Social & Governance: Environment
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Environment, Social & Governance : Energy Water Recycle Other Management Management & Reuse Initiatives • Corporate office building • Drinking Water of • 240 kgs per mon
Slide 43: Environment, Social & Governance: Social
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Environment, Social & Governance : Social Employee wellness Skill Customer Social & people practices Development Centricity Inclusion • Work from Home policy • 136 modul
Slide 44: Environment, Social & Governance: Governance
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Environment, Social & Governance : Risk Management & Board Governance & Business Continuity Information Security Code of Conduct & Diversity framework framework Regulato
Slide 45: Abbreviations
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Abbreviations Term Description Term Description GWP Gross Written Premium Opex Operating Expenses (excluding commission) NBP New Business Premium CAGR Compounded Annual
Slide 46: Glossary
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview 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 fisc
Slide 47: Disclaimer
Key Indicators Company Focus areas and Macro Economic Indicators & Annexure & Highlights Performance initiatives Industry Overview Disclaimer The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or purchase any securit
Slide 48: 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 – [email protected] Website – www.sbilife.co.in 41