Sbi Life Insurance Co. Ltd. · NSE:SBILIFE
Sbi Life Insurance — 9M FY2024 Earnings Presentation
51 slides from Sbi Life Insurance's earnings presentation, Jan 26, 2024
Slide 1: Letter to stock exchanges: Press Release & Investor Presentation
January 25, 2024 SBIL/CS/NSE-BSE/2324/214 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 nine months ended December 31, 2023
News Release January 25, 2024 BSE Code: 540719 NSE Code: SBILIFE Performance for the nine months ended December 31, 2023 Private Market leadership in Individual New Business Premium of ` 177.6 billion with 17% growth and 29.1% market share Annualized Premium Equivalent (APE) stands at ` 143.9 bi
Slide 3: Key financial ratios and business growth
Particulars 9M FY 2024 9M FY 2023 YoY Key Financial Ratios Operating expense ratio 3 5.1% 5.2% - Commission ratio 4 4.8% 4.5% - Total cost ratio5 9.9% 9.7% - Persistency Ratios - Premium Basis (Regular Premium/ Limited Premium payment under individual category) 6 13th month persistency 85.3% 84.6% -
Slide 4: Distribution network and cost efficiency
Distribution network The Company has strong distribution network of 312,626 trained insurance professionals consisting of agents, CIFs and SPs along with widespread operations with 1,028 offices across country. The Company has diversified distribution network comprising of strong bancassurance c
Slide 5: Assets under management and financial position
Assets under Management AuM grew by 24% from ` 2,999.9 billion as on December 31, 2022 to ` 3,714.1 billion as on December 31, 2023 with debt-equity mix of 65:35. Over 95% of the debt investments are in AAA and Sovereign instruments. Financial position The Company’s net worth increased by 15% fr
Slide 6: Definitions and About SBI Life Insurance
Solvency Ratio: Solvency ratio means ratio of the amount of Available Solvency Margin to the amount of Required Solvency Margin as specified in form-KT-3 of IRDAI Actuarial Report and Abstracts for Life Insurance Business Regulations. Net worth: Net worth represents the shareholders’ funds and i
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 December 2023
INVESTOR PRESENTATION Performance Update I December 2023
Slide 9: Content
CONTENT 01 03 05 Key Indicators Focus Areas Annexure & Highlights and Initiatives 02 04 Company Macro Economic Overview Indicators & Industry Overview
Slide 10: Key Indicators & Highlights
01 KEY INDICATORS & HIGHLIGHTS 3
Slide 11: Thriving in dynamic environment building resilient business model
Thriving in dynamic environment building resilient business model Trained Human Capital Technological Innovation Diverse Distribution 3.1 lacs 99.0% 1,028 Offices with strong Insurance personnel, focus on Individual applications need based selling submitted digitally distribution channels Financial
Slide 12: Driving growth through excellence and exuberance
Driving growth through excellence and exuberance ₹ in billion New Business Premium New Business APE ₹ 260.0 ₹ 143.9 Profit After Tax +21% 22% CAGR +17% 17% CAGR ₹ 10.8 Renewal Premium Individual Rated Premium +15% 4% CAGR ₹ 301.9 ₹ 127.9 Value of New Business & Margin +17% 20% CAGR +15% 16% CAGR ₹ 4
Slide 13: Company Overview
02 COMPANY OVERVIEW 6
Slide 14: Continuing superlative performance with excellence
Continuing superlative performance with excellence New Business Premium (%) Individual New Business Premium (%) Industry 12 12 9 (7) Industry 10 9 9 5 Private 18 17 19 10 Private 18 15 19 9 21 22 22 21 23 22 30 17 7Yr CAGR 5Yr CAGR 3Yr CAGR Growth 7Yr CAGR 5Yr CAGR 3Yr CAGR Growth Individual Rated P
Slide 15: Persistently delivering growth and acquiring market share
Persistently delivering growth and acquiring market share ₹ in billion GWP 502.5 587.6 673.2 473.0 561.9 19% SBIL Market Share Individual Rated New Business Premium¹ Period Private Industry 377.3 333.0 9M FY24 (%) 26.5 17.9 301.9 296.3 257.9 17% 86.8 Individual NBP 3Yr Gain (bps) 311 414 89.6 82.4 8
Slide 16: Robust distribution and diversified product mix
Robust distribution and diversified product mix Channel Mix ₹ in billion NBP Individual NBP 206.2 254.6 295.9 215.1 260.0 125.0 165.0 209.1 152.4 177.6 56% 53% 60% 61% 59% Banca Banca 65% 65% 67% 69% 67% Agency Agency 17% 18% 19% 18% 18% Others 28% 27% 23% 22% 22% Others 27% 29% 21% 21% 23% 10% 11%
Slide 17: Unparallel multi-channel distribution reach
Unparallel multi-channel distribution reach Pillars of distribution network Bancassurance Agency Institutional Alliance Direct & Corporates 27,000+ 2,43,500+ 14,000+ Top 3 SBI & RRB Bank Branches Agents ‒26% growth over Dec'22 Partner Branches in Industry in fund business 34% 34% 150 Call Centers –
Slide 18: Product portfolio mix
Product portfolio mix ₹ in billion Y-o-Y Mix Product Mix¹ FY21 FY22 FY23 9M FY23 9M FY24 Individual Savings Growth (%) 9M FY24 (%) 132.2 Savings 105.7 137.8 157.5 116.7 132.2 13 51 62.5 2x Par 9.7 7.7 9.5 6.5 6.2 (6) 2 9M FY19 9M FY24 16% Non Par 10.5 17.0 36.7 26.4 24.4 (8) 9 Protection ULIP 85.5 1
Slide 19: Wide range of offerings
Wide range of offerings Wealth Creation 38 | 32% Care free Retirement Protection Average Age Smart Elite 55 | 10% 37 | 24% % share in policies Saral Retirement Saver Smart Privilege Saral Jeevan Bima Child Education Financial Security 36 | 8% Retire Smart eWealth Insurance Smart Swadhan Plus 37 | 27
Slide 20: Maintaining cost efficiency, profitability and value
Maintaining cost efficiency, profitability and value Opex Ratio: Maintaining Cost efficiency (%) | Total Cost Ratio1 % Profit after Tax: Consistent growth in profit ₹ in billion 8.3% 8.8% 9.6% 9.7% 9.9% 17.2 14.6 15.1 5.1% 5.1% 5.2% 5.1% 4.8% 10.8 9.4 FY21 FY22 FY23 9M FY23 9M FY24 FY21 FY22 FY23 9M
Slide 21: Customer-centricity at our core
Customer-centricity at our core Persistency 1(%) Surrender Ratio 2 (%) 13th Month 25th Month 37th Month 85.3 6.10 85.4 85.2 85.5 84.6 78.1 75.8 75.6 76.3 76.9 72.1 74.5 73.2 72.1 72.4 5.10 4.60 4.80 3.90 FY21 FY22 FY23 9M FY23 9M FY24 49th Month 61st Month Unfair Business Practice 3(%) 70.1 71.6 55.
Slide 22: Value of new business movement
Value of new business movement VoNB margin stands at 28.1% ₹ in billion VoNB Margin 29.6% _ (2.0%) 0.9% (0.5%) 28.1% (%) 6.3 1.3 40.4 (2.8) (0.7) 36.3 9M FY23 Impact of Business Volume New Business Mix & Profile * Change in Operating Change in Economic 9M FY24 Assumptions Assumptions # 15 The method
Slide 23: Nurturing financial well being with healthy growth in AUM
Nurturing financial well being with healthy growth in AUM ₹ in billion AuM - Linked | Non Linked (%) Composition of Asset under Management 2,209 2,674 3,073 3,000 3,714 3% 2% 1% Government securities 33% Equity 26% 47 88:12 47 90:10 47 92:8 47 91:9 45 91:9 Debentures and bonds Others Money market in
Slide 24: Focus Areas and Initiatives
03 FOCUS AREAS AND INITIATIVES 17
Slide 25: Focus on key areas keeping customer at core
Focus on key areas keeping customer at core • 1,028 offices (39% in rural & • 8.2mn times customers served semi urban areas) & 40k+ using WhatsApp services branches of distributors Widespread distribution network & • Improved medical management, product suite to cater different needs • 34 individual
Slide 26: Accelerating digitalisation at SBI Life
Accelerating digitalisation at SBI Life Digital Digital & Distributor Simplified Ecosystem Enablers Customer Journey Becoming a digital-first organisation Performance Processes Product Improvements Stakeholder-Centric • Providing insurance cover to • Elasticity to handle high volumes • Faster produc
Slide 27: Future-led digital ecosystem
Future-led digital ecosystem Flexibility 770 Robustness Bitsight Score • 914 varied product features built in PMS Agility • 21 products in group policy system 71.4mn • 45 functionalities Servicing Inforce Lives • Strategic collaborations • Stronger digital (YONO branch portal, capabilities with 40+
Slide 28: Integrating digitalisation with our enablers
Integrating digitalisation with our enablers Centralised IT Service Management, One view dashboard for critical Digital Onboarding Workflow, IT Asset application monitoring (Uptime, Management and IT Compliance performance and transactions) Management Key metrics Protection of Personal IT Service de
Slide 29: Empowering distributors with cutting-edge technologies
Empowering distributors with cutting-edge technologies Launched Mconnect PWA Establishing a robust distributor ecosystem and Revamp. Banca Online 3.0 launched with Integrated Mconnect with 103 new reports on intuitive interface, making campaign products and Aaram Nxt and Aasaan navigation smoother a
Slide 30: End-to-end digital journey for customers
End-to-end digital journey for customers Prospecting Onboarding Underwriting Executing a focused Enhancing the process & Issuance strategy to evolve it into a for greater efficiency, Improving accuracy and need-based customer- accessibility, and a seamless efficiency of underwriting and centric proc
Slide 31: End-to-end digital journey for customers
End-to-end digital journey for customers Policy Servicing Renewals Claim Payouts Dual benefits of offering Automating tasks, Accelerating personalised services whilst utilising data claims settlements, while also streamlining and insights to enhancing transparency, internal processes. optimise our r
Slide 32: Macro Economic Indicators & Industry Overview
04 MACRO ECONOMIC INDICATORS & INDUSTRY OVERVIEW 25
Slide 33: Life insurance catalysing growth decades ahead
Life insurance catalysing growth decades ahead Composition of Population¹ (%) India's share of urban population² (%) Life Insurance DensityUS$3 52.8 5,414 6.6 8.6 13.8 46.4 40.1 49.3 34.9 52.4 30.9 54.2 0-14yrs 1,971 18 15-24yrs 16.1 13.6 25-64yrs 26.2 23 18.5 246 69 253 48 65+yrs 2020 2030 2050 201
Slide 34: India's underpenetrated Insurance market
India’s underpenetrated Insurance market Share of life insurance in savings expected to rise Underpenetrated Insurance Market Premium as % of GDP – 2022 1 Protection gap highest amongst peers2 (%) Sum Assured as % of GDP3,4 (%) 83 332 7.4 76 71 70 252 251 5.4 55 55 3.7 153 143 127 3.0 2.0 85 0.9 Sin
Slide 35: Annuity solutions for retirement bliss
Annuity solutions for retirement bliss Scope of Annuities business Pension Assets/GDP ratio1 (2021) (%) Ageing Population2 (%) Life Expectancy at 6033 213.3 9 19 152.6 62 62 22 22 19 20 17 18 Male 72.2 59.8 Age <15 yrs 29 Age <15-59 yrs Female 5.8 19 Age <60+ yrs Netherlands USA Japan Hongkong India
Slide 36: India's financial evolution
India’s financial evolution Share of Life Insurance in Household Savings expected to Rise Fastest growing G20 Economy³ Household Savings Composition¹ (%) Share of Life Insurance in Average annual real GDP growth (%) Financial Savings1 (%) 6.7 3 3 2 7 6 26 37 37 40 27 5.0 47 4.3 55 59 60 61 59 17 17
Slide 37: Industry composition
Industry composition Product portfolio¹ Channel mix2 Industry (%) Industry (%) 13 13 11 10 11 10 25 27 28 29 32 33 Banca ULIP 87 87 89 90 89 90 66 62 60 58 53 Agency Traditional 55 Others 9 11 12 13 13 15 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Private Players (%) Private Players
Slide 38: Annexure
OSBILife 05 Annexure
Slide 39: Annualised premium equivalent (APE)
Annualised premium equivalent (APE) APE Product mix and Channel mix ₹ in billion Mix Segment FY 21 FY22 FY23 9M FY23 9M FY24 Y-o-Y Growth 9M FY24 Individual Savings 94.6 118.7 139.8 102.8 118.6 15% 82% Par 9.7 7.5 9.5 6.5 6.1 (6%) 4% Non Par 10.7 17.1 37.5 27.1 24.5 (10%) 17% ULIP 74.2 94.1 92.9 69.
Slide 40: Individual annualised premium equivalent (APE)
Individual annualised premium equivalent (APE) Channel Mix Segment wise ₹ in billion Y-o-Y Mix Channel Segment FY 21 FY22 FY23 9M FY23 9M FY24 Growth 9M FY24 Bancassurance Participating 2.8 1.9 3.4 2.4 2.3 (4%) 2% Non Participating 13.7 19.7 31.1 22.8 21.8 (5%) 17% Unit Linked 52.6 65.8 69.7 53.0 65
Slide 41: Sensitivity analysis
Sensitivity analysis Scenario Change in VoNB Reference Rate +100 bps (0.7%) Reference Rate ‒100 bps 0.8% Decrease in Equity Value 10% (0.2%) Proportionate change in lapse rate +10% (3.2%) Proportionate change in lapse rate -10% 3.9% Mortality / Morbidity +10% (4.6%) Mortality / Morbidity -10% 4.6% M
Slide 42: Customer age and policy term
Customer age and policy term Average customer age in years Average policy term in years 40 40 39 36 37 28 18 17 13 13 Par Protection ULIP Non Par - Overall Par Protection ULIP Non Par - Overall Others Others 35 Age and term for Individual products for December 23
Slide 43: Revenue and profit & loss A/C
Revenue and profit & loss A/C ₹ in billion Particulars FY22 FY23 9M FY23 9M FY24 Premium earned 587.6 673.2 473.0 561.9 Premium on reinsurance ceded (3.3) (7.3) (6.2) (7.2) Net premium earned 584.3 665.8 466.8 554.7 Investment income1 245.2 140.4 126.6 402.8 Other income 0.5 0.5 0.4 0.4 Total income
Slide 44: Balance Sheet
Balance Sheet ₹ in billion Particulars FY22 FY23 9M FY24 Sources of funds Share Capital 10.0 10.0 10.0 Reserves and Surplus 104.2 119.2 130.3 Credit/(Debit) Fair Value Change Account 2.0 0.9 3.9 Sub Total 116.2 130.2 144.3 Credit/(Debit) Fair Value Change Account 32.1 20.4 37.4 Policy Liabilities 1,
Slide 45: Our sustainability commitments: Environment
Our sustainability commitments: Environment Energy Management Water Management • Corporate office building is a Green Building: certified by • Drinking Water of previous office day collected from Indian Green Building Council (IGBC) to comply with Staff Water Bottles re-used to water the garden plan
Slide 46: Our sustainability commitments: Social
Our sustainability commitments: Social Employee wellness & people practices Customer Centricity • Work from Home policy • Customer Surveys (Net Promoter Score - 59) & awareness • Health check-up programs & wellness sessions at pan-India level programs • Employee engagement survey & Townhalls • Griev
Slide 47: Our sustainability commitments: Governance
Our sustainability commitments: Governance Board Governance & Diversity Information Security framework • >60% Independent Directors on Board ensuring • Aligned to ISO 27001 – ISMS Sustenance Independence in governance • Acceptable Usage practices, technical aspects of • Women Director on Board IS, S
Slide 48: 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 49: Glossary
Glossary New Business APE New Business Premium (NBP) Value of New Business (VoNB) Embedded Value The sum of annualized first year Insurance premium that is due in the first Value of New Business is the present Operating Profit (EVOP) premiums on regular premium policies, policy year of a life insura
Slide 50: Disclaimer
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 securities of SBI Life Insurance Company Limited in India or in any other jurisdiction. This presentation is not intended to be a prospect
Slide 51: Thank You
Investor Relations Contact SBI Life Insurance Co. Ltd, Fifth Floor, Natraj, M. V. Road & Western Express Highway Junction, Andheri (E), Mumbai – 400 069 Dial – +91 22 6191 0281/ 0399 Thank You Email – [email protected] Website – www.sbilife.co.in