SBI Life Insurance Company Limited has informed the Exchange regarding a press release dated October 27, 2023, titled "Press Release and Investor Presentation".
October 27, 2023 SBIL/CS/NSE-BSE/2324/162
Assistant Vice President Listing Department, National Stock Exchange of India Limited, Exchange Plaza, Plot No. C/1, G Block, BKC, Bandra (East), Mumbai 400051 NSE Symbol: SBILIFE BSE Scrip Code: 540719
General Manager Listing Department, BSE Limited,
Mumbai 400001
Dalal Street,
Phiroze Jeejeebhoy Towers,
Dear Sir / Madam,
Subject: Press Release & Investor Presentation – Performance for the Quarter and Half Year ended September 30, 2023
A copy of the press release and investor presentation being issued in connection with performance for the quarter and half year ended September 30, 2023, is enclosed. The above information is also made available on the Company’s website at www.sbilife.co.in
We request you to kindly take the above information on record.
Thanking You,
Yours faithfully,
Vinod Koyande Company Secretary ACS No. 33696
Encl: A/a
SBI Life Insurance Company Ltd. Registered and Corporate Office: Natraj, M.V. Road and Western Express Highway Junction Andheri (East), Mumbai 400 069. Tel.: (022) 6191 0000/ 3968 0000 IRDAI Regn. No. 111. CIN: L99999MH2000PLC129113
www.sbilife.co.in
News Release BSE Code: 540719
October 27, 2023 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 billion with growth of 21%
Protection Annualized Premium Equivalent (APE) stands at ` 10.7 billion with growth of 39%
Value of New Business (VoNB) stands at ` 23.6 billion with 12% growth
VoNB Margin stands at 28.6%
Profit After Tax (PAT) stands at ` 7.6 billion with 19% growth
Solvency ratio of 2.12
Annuity and Pension New Business stands at ` 41.8 billion with 27% growth
Operating Return on Embedded Value stands at 20.2%
Assets under Management stands at ` 3.45 trillion with 22% growth
Key measures of performance
Particulars Revenue Parameters New Business Premium (NBP) Renewal Premium (RP) Gross Written Premium (GWP) Individual New Business Premium Individual Rated Premium (IRP) Annualized Premium Equivalent (APE) Total Protection NBP (Individual + Group) Total Protection NBP Share Private Market Share based on IRP 1 APE Product mix (%) (Par/Non Par/ULIP) APE Channel mix (%) (Banca/Agency/others) Financial Parameters Profit after Tax (PAT) Net Worth Assets under Management (AuM) IEV, VoNB and VoNB Margin2 Indian Embedded Value (IEV) IEV per share (in ) (IEV / Number of Shares) Value of New Business (VoNB)
H1 FY 2024 H1 FY 2023
YoY
(` in billion)
162.6 174.7 337.3 101.7 70.6 82.6 20.0 12.3% 24.6% 5/39/56 60/26/14
7.6 139.7 3,451.5
512.6 512.1 23.6
130.9 148.8 279.7 84.6 60.5 68.3 16.0 12.2% 23.7% 6/45/49 63/25/12
6.4 122.1 2,826.3
424.1 423.8 21.2
24% 17% 21% 20% 17% 21% 25% - - - -
19% 14% 22%
21%
12%
Particulars VoNB per Share (in ` ) (VoNB / Number of Shares) New Business Margin (VoNB Margin) Key Financial Ratios Operating expense ratio 3 Commission ratio 4 Total cost ratio5 Persistency Ratios - Premium Basis (Regular Premium/ Limited Premium payment under individual category) 6
H1 FY 2024 H1 FY 2023 21.2 31.0%
23.6 28.6%
YoY
5.4% 4.6% 10.0%
5.6% 4.5% 10.2%
- -
- - -
13th month persistency 25th month persistency 37th month persistency 49th month persistency 61st month persistency
85.4% 76.7% 73.6% 71.2% 57.5% 2.12 11.3%
85.2% 77.5% 72.9% 70.3% 52.5% 2.19 10.7%
- - - - - - -
Solvency Ratio Return on Equity (RoE) 1. Source: Life insurance council 2. IEV, VoNB and VoNB Margin for H1 FY24 and H1 FY23 have been reviewed by Independent Actuary. 3. Operating expense ratio = Operating expenses / Gross Written Premium (GWP) 4. Commission ratio = Commission (including rewards) / Gross Written Premium (GWP) 5. Total cost ratio = (Operating expenses + Commission + Provision for doubtful debt and bad debt written off) /GWP 6. The persistency ratios are calculated as per IRDA/ACT/CIR/GEN/21/02/2010 circular dated February 11, 2010 and IRDAI circular
no. IRDAI/F&A/CIR/MISC/256/09/2021 dated September 30, 2021. Persistency Ratios for the period ended September 30, 2023 and September 30, 2022 are 'Upto the Quarter' Persistency calculated using policies issued in September to August period of the relevant years.
N.B: Refer the section on definitions, abbreviations and explanatory notes
The Board of Directors of SBI Life Insurance Company Limited approved and adopted its audited financial results for the quarter and half year ended September 30, 2023, following its meeting on Friday, October 27, 2023 in Mumbai. The disclosure of financial results submitted to exchanges is annexed to this release.
Business growth and market share
The Company has maintained its leadership position in Individual Rated Premium of ` 70.6 billion with
24.6% private market share in H1 FY 24.
Strong growth in Individual New Business Premium by 20% to ` 101.7 billion in H1 FY 24.
New Business Premium (NBP) has grew by 24% to ` 162.6 billion in H1 FY 24 aided by growth in Single
premium business by 28%.
Protection New Business Premium has increased by 25% from ` 16.0 billion in H1 FY 23 to ` 20.0 billion
in H1 FY 24 due to growth in group protection business by 34% to ` 15.7 billion in H1 FY 24.
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
agents, CIFs and SPs along with widespread operations with 1,011 offices across country.
The Company has diversified distribution network comprising of strong bancassurance channel, agency channel and others comprising of corporate agents, brokers, micro agents, common service centers, insurance marketing firms, web aggregators and direct business.
APE channel mix for H1 FY 24 is bancassurance channel 60%, agency channel 26% & other channels 14%.
NBP of Agency channel has increased by 32% to ` 31.3 billion in H1 FY 24 and NBP of Banca channel has
increased by 18% to ` 88.2 billion in H1 FY 24 as compared to same period last year.
Cost Efficiency
Total Cost ratio for H1 FY 24 is 10.0% vis-à-vis 10.2% for H1 FY 23
Commission ratio for H1 FY 24 is 4.6% vis-à-vis 4.5% for H1 FY 23
Operating Expense ratio for H1 FY 24 is 5.4% vis-à-vis 5.6% in H1 FY 23
Profitability
Profit after Tax (PAT) grew by 19% to ` 7.6 billion for H1 FY 24.
VoNB increased by 12% to ` 23.6 billion for H1 FY 24.
VoNB margin stands at 28.6% in H1 FY 24.
Persistency
Strong growth in 49th month and 61st month persistency (based on premium considering Regular Premium/
Limited Premium payment under individual category) in H1 FY 24 by 92 bps and 509 bps respectively
due to our focus on improving the quality of business and customer retention.
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% from ` 122.1 billion as on September 30, 2022 to ` 139.7
billion as on September 30, 2023.
Robust solvency ratio of 2.12 as on September 30, 2023 as against the regulatory requirement of 1.50
indicating strong financial position of the Company.
Definitions, abbreviations and explanatory notes
New Business Premium (NBP): Insurance premium that is due in the first policy year of a life insurance
contract or a single lump sum payment from the policyholder.
Annualized Premium Equivalent (APE): The sum of annualized first year premiums on regular premium policies, and 10% of single premiums, written by the Company during the fiscal year from both retail and group customers.
Individual New Business Premium: Insurance premium that is due in the first policy year of an individual
life insurance contract.
Individual Rated Premium (IRP): New business premiums written by the Company under individual
products and weighted at the rate of 10% for single premiums.
Renewal Premium: Life insurance premiums falling due in the years subsequent to the first year of the
policy.
Embedded Value: The measure of the consolidated value of shareholders’ interest in the covered life
insurance business, which is all life insurance business written by the Company since inception and inforce as on the valuation date (including lapsed business which have the potential of getting revived). The Embedded Value of the Company has been determined on the basis of the Indian Embedded Value (IEV) Methodology calculated as per APS 10 set forth by the Institute of Actuaries of India (IAI).
Value of New Business (VoNB): VoNB is the present value of expected future earnings from new policies written during a specified period and it reflects the additional value to shareholders expected to be generated through the activity of writing new policies during a specified period.
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 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 is computed as sum of share capital and reserves including share premium, share application money and fair value change account net of debit balance in profit and loss account.
About SBI Life Insurance
SBI Life Insurance (‘SBI Life’ / ‘The Company’), one of the most trusted life insurance companies in India, was incorporated in October 2000 and is registered with the Insurance Regulatory and Development Authority of India (IRDAI) in March 2001.
Serving millions of families across India, SBI Life’s diverse range of products caters to individuals as well as group customers through Protection, Pension, Savings and Health solutions.
Driven by ‘Customer-First’ approach, SBI Life places great emphasis on maintaining world class operating efficiency and providing hassle-free claim settlement experience to its customers by following high ethical standards of service. Additionally, SBI Life is committed to enhance digital experiences for its customers, distributors and employees alike.
SBI Life strives to make insurance accessible to all, with its extensive presence across the country through its 1,011 offices, 23,998 employees, a large and productive network of about 236,978 agents, 73 corporate agents and 14 bancassurance partners with more than 41,000 partner branches, 148 brokers and other insurance marketing firms.
In addition to doing what’s right for the customers, the company is also committed to provide a healthy and flexible work environment for its employees to excel personally and professionally.
SBI Life strongly encourages a culture of giving back to the society and has made substantial contribution in the areas of child education, healthcare, disaster relief and environmental upgrade. In 2022-23, the Company touched over 1.1 lakh direct beneficiaries through various CSR interventions.
Listed on the Bombay Stock Exchange ('BSE') and the National Stock Exchange ('NSE'), the company has an authorized capital of ` 20.0 billion and a paid up capital of ` 10.0 billion. The AuM is ` 3,451.5 billion.
For more information, please visit our website-www.sbilife.co.in and connect with us on Facebook, Twitter, YouTube, Instagram, and Linkedin.
(Numbers & data mentioned above are for the period ended September 30, 2023)
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 involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the actual growth in demand for insurance and other financial products and services in the countries that we operate or where a material number of our customers reside, our ability to successfully implement our strategy, including our use of the Internet and other technology our exploration of merger and acquisition opportunities, our ability to integrate mergers or acquisitions into our operations and manage the risks associated with such acquisitions to achieve our strategic and financial objectives, our growth and expansion in domestic and overseas markets, technological changes, our ability to market new products, the outcome of any legal, tax or regulatory proceedings in India and in other jurisdictions we are or become a party to, the future impact of new accounting standards, our ability to implement our dividend policy, the impact of changes in insurance regulations and other regulatory changes in India and other jurisdictions on us. SBI Life Insurance Company Limited undertakes no obligation to update forward looking statements to reflect events or circumstances after the date thereof.
This release does not constitute an offer of securities.
For investor queries please call Sangramjit Sarangi at + 91 22 6191 0281 or email investorrelations@sbilife.co.in
For further press queries please call Santosh Setty at +91-22-6191 0034 / Minakshi Mishra at +91-22-6191 0140 or email santosh.setty@sbilife.co.in / minakshi.mishra@sbilife.co.in
(`1 billion (bn) = ` 100 crore; `1 trillion = ` 1 lakh crore)
Investor Presentation Performance Update I September 2023
Contents 1
Key Indicators & Highlights
3
Focus areas and
initiatives
5
Annexure
2
Company Performance
4
Macro Economic Indicators & Industry Overview
2
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Resilient business model creating long term value
Trained Human Capital
3.1 lacs insurance personnel, focus on need based selling
Technological Innovation
99.1%
individual applications submitted digitally
Diverse Distribution
1,011 offices with strong distribution channels
Financial Strength
2.12 times
Solvency ratio
Customer Centricity
Over 18.7mn new lives with Sum assured ~ ` 3,649bn
Sustainable Value Accretion
` 23.6bn value of new business generated
Numbers as on Sep 2023
Driven by strong brand, solid governance and committed employees
3
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Highlights for 1H FY24
New Business Premium
New Business APE
Profit after Tax
` in billion
Growth +24%
CAGR 24%
` 162.6
Growth +21%
CAGR 17%
` 82.6
Renewal Premium
Individual Rated Premium
Growth +17%
CAGR 21%
` 174.7
Growth +17%
CAGR 16%
` 70.6
Growth +19%
CAGR 5%
` 7.6
Value of New Business & Margin
Growth +12%
VonB Margin 28.6%
`
`
` 23.6
Gross Written Premium
Protection & Annuity Share
Embedded Value
Growth +21%
CAGR 22%
` 337.3
Growth +36%
CAGR 47%
` 48.6
Growth +21%
ROEV* 20.2%
` 512.6
`
CAGR numbers are calculated for a period of 5 years from Sep’18 to Sep’23. Numbers are rounded off to nearest one decimal* ROEV is annualized and represents returns for H1 FY24
4
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
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
Private
SBI Life
11%
18%
20%
11%
17%
24%
8%
21%
22%
(13%)
14%
24%
Industry
Private
SBI Life
11%
18%
24%
10%
15%
22%
10%
21%
34%
8%
11%
20%
Individual Rated Premium
Individual Policies
7Yr CAGR
5Yr CAGR
3Yr CAGR
Growth
7Yr CAGR
5Yr CAGR
3Yr CAGR
Growth
Industry
Private
SBI Life
12%
16%
19%
10%
13%
16%
15%
21%
29%
8%
13%
17%
Industry
Private
SBI Life
2%
6%
9%
0.3%
4%
10%
9%
8%
18%
(0.03%)
9%
6%
Well responded to all business cycle and pushed high quality development
5
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Continues to deliver on long term growth vision
` in billion
in million
GWP
502.5
587.6
673.2
279.7
337.3
296.3
81.3
125.0
FY 21
333.0
89.6
165.0
FY22
377.3
86.8
209.1
FY23
148.8
46.3
84.6
174.7
61.0
101.7
Individual Policies
2.2
1.7
1.9
0.9
6%
1.0
21%
17%
32%
20%
H1 FY23
H1 FY24
FY 21
FY22
FY23
H1 FY23
H1 FY24
SBIL Market Share Individual Rated New Business Premium1
SBIL Market Share Individual Policies1
Period
H1 FY24
3Yr Gain
5Yr Gain
Private
27.3%
383bps
270bps
Industry
16.2%
445bps
382bps
Period
H1 FY24
3Yr Gain
5Yr Gain
Private
26.7%
622bps
613bps
Industry
8.4%
178bps
305bps
1 Based on Life Insurance Council data; Components may not add up to total due to rounding-off.
6
Strong growth in Individual New Business aids to gain in Market share
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Stable distribution mix and driving balanced product mix
Channel Mix
NBP
Individual NBP
` in billion
206.2
254.6
295.9
130.9
162.6
27%
17%
56%
29%
18%
53%
21%
19%
60%
25%
18%
57%
26%
19%
54%
125.0
7%
28%
165.0
8%
27%
209.1
10%
23%
84.6
9%
24%
101.7
12%
23%
65%
65%
67%
67%
65%
FY 21
FY22
FY23
Banca
Agency
H1 FY23 Others
H1 FY24
FY 21
FY22
FY23
Banca
Agency
H1 FY23 Others
H1 FY24
Segment Mix
NBP
Individual NBP
12%
42%
54%
5%
FY 21
12%
45%
52%
3%
FY22 Non-par
Par
12%
38%
59%
3%
FY23
12%
33%
64%
3%
12%
34%
64%
3%
H1 FY23
H1 FY24
ULIP
NBP - Protection share
Components may not add up to total due to rounding-off
6%
6%
68%
69%
24% 8%
FY 21
27% 5% FY22 Non-par
Par
5%
53%
42%
5% FY23
ULIP
5%
51%
44%
4%
54%
42%
5% H1 FY23 Ind NBP - Protection share
4% H1 FY24
7
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Unparalleled distribution reach
Bancassurance
Agency
Institutional Alliance
Direct & Corporates
Pillars of distribution network
▪ 27,000+ SBI & RRB Bank
Branches
▪ 2,36,900+ Agents – 33%
growth over Sep’22
▪ 34% NBP share in Total
▪ 30% NBP share in Private
Industry2
market2
▪ `57 Lacs SBI Productivity per branch1 with 58k+ CIFs
▪ 59% share in NOPs with 3%
growth & 8% growth in Protection business
▪ 99.5% business sourced
digitally
▪ `2.1 lacs Agent Productivity1
▪ 34% share in NOPs
▪ 99.7% business sourced
digitally with 3.6mn uploads on Smart advisor
▪ 14,000+
Partner Branches
▪ 148 Brokers
▪ 8,800+
Specialized Persons
▪ 15% growth in policies
▪ 73 Corporate Agents
▪ 69% growth NPS augmentation
▪ Top 3 in Industry in fund
business
▪ Call Centers - Dedicated call center for website sales & servicing
▪ Multi linguistic website in 9 languages to make buying easy
▪ Lead Management
ecosystem – Assignment, Nurturing & Monitoring
1.Productivity per branch/agent is based on Individual NBP 2. Based on public disclosures for Q1 FY24 All growth/drop numbers are with respect to Sep FY24 over Sep FY23. Components may not add up to total due to rounding-off.
8
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Product portfolio
` in billion
FY23
H1 FY23
H1 FY24
FY 21
105.7
9.7
10.5
85.5
24.6
7.4
17.2
30.2
45.7
FY22
137.8
7.7
17.0
113.2
30.5
9.4
21.1
34.7
51.5
206.2
254.6
Individual Savings
73.0
Product Mix1
Savings
- Par
- Non Par
- ULIP
Protection
- Individual
- Group
Annuity
Group Savings
Total NBP
35.4
157.5
9.5
36.7
111.4
36.4
10.0
26.4
49.7
52.3
295.9
5.9
64.0
4.2
16.9
43.0
16.0
4.3
11.6
19.8
31.1
73.0
4.3
14.2
54.5
20.0
4.3
15.7
28.6
41.0
130.9
162.6
Y-o-Y Growth
14%
3%
(16%)
27%
25%
(1%)
34%
45%
32%
24%
Mix H1 FY24
45%
3%
9%
33%
12%
3%
10%
18%
25%
100%
Protection
20.0
Annuity
28.6
H1 FY19
H1 FY24
H1 FY19
H1 FY24
Focus on balance product mix - long term value generation
1.2
H1 FY19
H1 FY24
1.New business premium basis; Components may not add up to total due to rounding-off
9
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Wide product offerings
Child Education
36
8%
Care free Retirement
55
10%
Financial Security
37
27%
Protection
37
26%
The product list is only indicative & not exhaustive
Wealth Creation
38
29%
Average Age
% share in policies
10
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
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%
9.6%
10.2%
5.6%
10.0%
5.4%
5.1%
5.1%
4.8%
100%
80%
60%
40%
20%
0%
20.0
15.0
10.0
5.0
-
14.6
15.1
17.2
6.4
7.6
FY 21
FY22
FY23 Opex ratio
H1 FY23
H1 FY24
FY 21
FY22
FY23
H1 FY23
H1 FY24
Solvency : Cushioned to support future growth prospects
Networth : Zero debt company with healthy reserves
2.15
2.15
2.05
2.19
2.12
104.0
116.2
130.2
122.1
139.7
FY 21
FY22
FY23
H1 FY23
H1 FY24
FY 21
FY22
FY23
H1 FY23
H1 FY24
1. Total cost ratio is operating expenses including commission, provision for doubtful debts and bad debts written off divided by Gross Written Premium; Components may not add up to total due to rounding-off
11
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Strong focus on customer service
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%
Persistency1
55.6%
52.5%
57.5%
49.5%
13th Month
25th Month
37th Month
49th Month
61st Month
FY 22
FY23
H1 FY23
H1 FY24
Surrender Ratio2
Unfair Business Practice3
3.9%
4.6%
5.1%
4.3%
6.1%
0.06%
0.07%
0.08%
0.10%
0.03%
FY 21
FY22
FY23
H1 FY23
H1 FY24
FY 21
FY22
FY23
H1 FY23
H1 FY24
1. The persistency ratios are calculated as per IRDAI circular no. IRDAI/F&A/CIR/MISC/256/09/2021 dated September 30, 2021. Regular Premium & Limited Premium Paying Term policies of only Individual Segment.
Ratios for 12M are calculated using policies issued 1st September to 31st August period of the relevant years
2. Surrender ratio-individual linked products (Surrender/Average AuM). 3. Number of grievances with respect to unfair business practice as compared to policies issued in the same period.
12
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Indian Embedded Value
` in billion
EVOP ` 44.4 billion
ROEV 20.2%
23.6
19.7
1.1
7.6
0.1
460.4
512.6
IEV as on Mar'23
VoNB
Unwinding
Operating Experience Variance
Economic Assumption Change & Variance
Capital / Dividends / ESOPs
IEV as on Sep'23
The methodology, assumptions and the results have been reviewed by Willis Towers Watson Actuarial Advisory LLP
13
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Value of New Business Movement
` in billion
VoNB margin stands at 28.6%
VoNB Margin
31.0%
-
4.4
(2.4%)
(2.0)
0.9%
0.7
(0.9%)
(0.7)
21.2
28.6%
23.6
H1 FY23
Impact of Business Volume
New Business Mix & Profile *
Change in Operating Assumptions
Change in Economic Assumptions #
H1 FY24
The methodology, assumptions and the results have been reviewed by Willis Towers Watson Actuarial Advisory LLP
*Impact of change mainly in Business mix and profile (Age, Term, Channel etc.); # Risk free rate change
14
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Asset under Management
` in billion
AuM – Linked | Non Linked
Composition of Asset under Management
2,209
2,674
3,073
2,826
3,451
88:12
47%
90:10
47%
92:8
47%
92:8
47%
92:8
46%
59:41
53%
54:46
53%
52:48
53%
53:47
53%
48:52
54%
FY 21
FY 22
FY 23
H1 FY23
H1 FY24
Linked
Non - Linked
Debt:Equity
Investment performance1
12.8%
12.4%
11.5%
11.3%
11.7%
11.3%
11.3%
11.9%
11.5%
12.9%
Equity pension II
Equity Elite II
Equity Optimiser
Top 300
Growth
Fund
Benchmark
1. 5 year CAGR as on September; Components may not add up to total due to rounding-off.
3%
2%
32%
` 3,451bn
28%
1%
Equity
Government securities
Fixed deposits
Debentures and bonds
Money market instruments
34%
Others
95% (debt investments) AAA & Sovereign
0.04% (debt investments) Below AA
22% AUM Growth
68:32 Debt Equity Ratio
15
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Key Focus Areas
❖ 1,011 offices (39% in rural & semi urban areas) & 40k+ branches
of distributors
❖ 34 individual & 9 group products to cater different needs of the
customer
Widespread distribution network & product suite to cater different needs
❖ 4.8mn times customers served using WhatsApp services
❖ TMT at home through Paddle TMT
❖ 640k+ Insta PIWC & 447k+ Audio PIWC
❖ 9.8 lacs policies issued, growth of 6%
Disciplined Business Focus
Customer Engagement
❖ 0.8mn+ Queries resolved through call centre
❖ 2.6 lacs individual protection policies sold digitally
❖ Customer Grievances – 6 per 10,000 policies.
Leveraging Best in class operating ratios
Use of analytics -enabling better customer engagement
❖ 96% Renewal Premium - collected through Digital Mode
Operational Efficiencies
Digital Capabilities
❖ Focus on cutting edge technology for enabling business
❖ Video MER – for enhanced convenience
❖ 191 activities live with Robotic Process Automation (RPA)
❖ Real Time Integration - with TPA for faster transmission of
medical reports
❖ One of the lowest cost ratios in the industry
❖ 40k+ Death Claims settled – ease to customers for document
submissions
❖ Surrender Prevention tools for personalized outputs
❖ Digital submission of Claims documents, e-MHR.
Harnessing technology in strengthening business
❖ Account Aggregator - FIU & FIP
MER – Medical Examination Reports;; MHR – Moral Hazard Report; PIWC – Pre Issuance Welcome Call
16
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Digital @ SBI Life
Digital Ecosystem
Digital & Distributor Enablers
Simplified Customer Journey
Becoming a digital-first organisation
Performance
Processes
Product Improvements
Stakeholder-Centric
• Providing insurance cover to remotest areas,
• Elasticity to handle high volumes and
• Faster product rollouts
• Providing appropriate insurance
resulting in increased penetration
peak demand
(presence in 29 states & 6 union territories with
• Providing MIS to help in decision-
32% policies sold in rural areas for H1 FY24)
making and enable regulatory reporting
• Best in class digital tools for better risk
requirements
• Expanded product offerings
•
Lower TAT
• Better servicing
assessment and risk management
• Data Analytics enabling cross sell,
upsell and customer retention
• AI & Machine learning aiding to provide
efficient customer solutions
solutions with enriched experience
• Enabling hybrid work environment
• Supporting 23,998 employees and
300K+ distributors
• Faster integration with partners
17
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Digital Ecosystem
Flexibility
Robustness
Agility
•
•
•
914 varied product features built in PMS
21 products in group policy system
45 functionalities
• Strategic collaborations (YONO branch portal, Yes Bank, Insurance Dekho etc.)
• Adopting new
technology and products
Customer at the core
• Stronger digital capabilities with 40+ digital apps and 7 reporting and analytics tools
• Robust cybersecurity
practices
• Supporting double digit growth of NBP and renewal premiums
• Efficient service requests.
•
•
24*7 connectivity for WFH
140 active training Modules in Eshiksha
• Digital onboarding.
Scalability
People-oriented
770
BITSIGHT SCORE
Servicing 63.1mn
Inforce Lives
1200
Concurrent sessions and more than 1.5 lac report views/ downloads
137k+
Hours Training on Eshiksha
8
Refiled products rolled out from April to Sep'23
99%
Digital adoption for sourcing new business
Resulting in increased efficiency, increased productivity, lower cost and improved customer experience
18
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Digital Enablers
Centralised IT Service Management, Digital Onboarding Workflow, IT Asset Management and IT Compliance Management
One view dashboard for critical application monitoring (Uptime, performance and transactions)
Single email domain across company with tamper proof email archival system.
Unified Email System with compliance archival
IT Service desk & Central IT monitoring system
Protection of Personal identifiable Information of customer. Compliance requirement of Digital Personal Data Protection Act
Data Loss Prevention with data classification
Key metrics
100%
customer emails enquiries handled by email bot
2.4mn
Queries handled through bot
Protection of IT Assets from zero day, ransomware and unknown threat and attacks.
EDR and XDR for proactive threat protection
IT Enablers
Enterprise Service BUS and API
Common Service platform for consumption by multiple application with secure and scalable way.
500+
TASKS (RPA)
Data Center & Disaster Recovery center
25+
self servicing facilities for customers
18mn
URL for servicing
SDWAN for branch network
Latest WAN technology to bring visibility, remediation and automation to improve productivity of branches
Secure Code Review and Github
Secure by Design principle to ensure applications are designed with security framework.
Application Controlled Infrastructure at Datacenter
Cutting edge Switching technology with lowest latency over network to deliver best performance of application.
134
Process automated
10+
Live automated modules across operational processes for risk mitigation
19
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Distributor Enablers
Establishing a robust distributor ecosystem
80+ new reports on Aaram Nxt and Aasaan
Launched Mconnect PWA and Revamp
Integrated Mconnect with campaign products and NASA
1
Initiatives
7
2
6
3
5
4
EIA dashboard in smart advisor
Digi LM recruitment – Multilingual
Seamless new partner Integration
Smart advisor updates IA account details
Key metrics
93% KPI reports delivered – accessible anytime, anywhere
More then 9 new features integrated making need based selling seamless
Campaign self updates at finger tips
Grievance Redressal for IA through Smart advisor
Launched Personalized Website for more than 42,000 LMs Pan India
Predictive Analytics - 30 live data models across policy life cycle aiding support to distributors
Aasan BI
PWA - Progressive Web Application ; NASA - Need Analysis and Suitability Analysis
20
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Simplified Customer Journey
Prospecting Executing a focused strategy to evolve it into a need-based customer-centric process.
Onboarding Enhancing the process for greater efficiency, accessibility, and a seamless experience.
Underwriting & Issuance Improving accuracy and efficiency of underwriting and policy issuance through the usage of data-driven decision- making and risk assessment.
429k+ Clicks/Inquiries SBI Life Website
104% Growth in Yono lives
574k Downloads Paisa Genie
147k+ Bitly (Upsell/ Cross leads generated)
6 Partner Apps
2.1mn Unique customers in Smart Care
126k+ Active user & 1.2mn proposals in Mconnect
5k+ Login count in NPS Parivartan
510k+ Downloads with 3.6mn+ uploads in Smart Advisor
91% Growth in Online Selling
4.2mn Cases issued in NB Workflow
1.3mn Transaction in Ingenium
38mn Transactions in RENOVA
17.5mn Lives with growth of 185% in BaNCS
1.8mn Portal/CMI
Outcome
69%
Digital KYC
<10 mins
Customer On-Boarding process
60%
Insta PIWC
74%
E - IA
21
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Simplified Customer Journey
Policy Servicing Dual benefits of offering personlised services while also streamlining internal processes.
Renewals Automating tasks, whilst utilising data and insights to optimise our renewal strategy.
Claim Payouts Accelerating claims settlements, enhancing transparency, while up- holding data security.
1.7mn+ Whats app Registration
1.1mn Servicing request handled through CRM
162k+ Smart Care Registration
616k Pay service transactions
65% Cases revived through Revival Workflow
2.6mn Renewal receipt on Whats app
525k+ Ipay requisitions
432k Apex
7.6mn Service requests (e-kyc, CIBIL, data vault, etc)
62+mn Transactions on Bots
524k IVRS self service option
282K+ Esampark requests handled
1.1mn Claim transactions in Ingenium
817k+ Epravah requisitions
Outcome
7%
25%
77%
50%
Reduction in medial Issuance TAT
Reduction in Non medial Issuance TAT
0-2 Days Individual Issuance
Automated Underwriting
22
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
India Life Insurance - Structural Growth Drivers in Place
Composition of Population1
India’s share of urban population2
Life Insurance DensityUS$3
6.6%
49.3%
18.0%
26.2%
2020
8.6%
52.4%
16.1%
23.0%
2030
13.8%
54.2%
13.6%
18.5%
2050
0-14yrs
15-24yrs
25-64yrs
65+yrs
52.8%
5414
46.4%
40.1%
34.9%
30.9%
2010
2020
2030
2040
2050
Singapore South Korea
Thailand
India
China
Indonesia
1971
246
69
253
48
Advantage India • Over the next decade, Swiss re forecast that premiums will grow by an annual average of 9% in real terms. •
India is one of the fastest growing insurance markets in the world. It is the 9th largest country globally in terms of life premium volume and is expected to be 5th largest by 2032.
• One of the highest young population nations with median age of 28 years • Rising share of urbanisation – Growth in urban population at 2.4% CAGR between FY 15 and FY 20
Combination of a high share of working population, rapid urbanization, rising affluence and focus on financial inclusion
to propel the growth of Indian life insurance sector
1. United Nations, Department of Economic and Social Affairs, World Population Prospects 2019 2. World Urban Prospects 2018 3. Swiss re sigma No.4/2022
23
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Life Insurance – Significant Under Penetration versus other Markets
Premium as % of GDP – 20211
Protection gap highest amongst peers2
Sum Assured as % of GDP3,4
Underpenetrated Insurance Market
7.5%
5.8%
3.9%
3.2%
2.1%
1.1%
83%
76%
71%
70%
332%
55%
55%
252% 251%
153% 143%
127%
85%
Singapore
South Korea
Malaysia
India
China
Indonesia
India
Indonesia Thailand
China
South Korea
Singapore
Singapore
Japan
US
Malaysia Thailand S.Korea
India
•
•
•
10th largest in insurance market worldwide and 2nd largest in Emerging markets with $126,974mn in total premium business as on 2021
Total premium grew at annual average of 7.5% between FY15– FY21 & is expected to grow at an average of 9% per annum
India continues to be under penetrated as compared to countries like China, Thailand and Korea
1. Swiss Re, sigma No 4/2022 2. Swiss Re, “Closing Asia’s Mortality Protection Gap 2020” 3. As of FY2020 (for USA & Japan as of FY2018) 4. McKinsey estimates
24
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Protection – the next growth driver
Addressable Population1
Mortality Protection Gap (in US$ trillion)1
Scope of Protection business
Population of India 1320 Mn
Bank Accounts 1050 Mn
PAN Card 440 Mn
Tax Return 59 Mn
MF Investor 21 Mn
Insured 6 Mn
35.6
26.8
16.5
8.5
5.5
2009
2014
2019
2025e
2030e
•
•
•
Low penetration levels as compared to the addressable population
Increase in disposable income coupled with pandemic-induced awareness of protection products will increase penetration level
Swiss Re estimates protection gap to rise from US$ 16.5 trillion in 2019 to US$ 35.6 trillion in 2030
1. Phillip Capital Report ‘Life Insurance’ 2020
25
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Retirement solutions - Annuities
Pension Assets/GDP ratio1 (2021)
Ageing Population2
Life Expectancy at 603
Scope of Annuities business
213.3%
152.6%
72.2%
59.8%
5.8%
Netherlands
USA
Japan
Hongkong
India
9%
62%
29%
2015
19%
62%
19%
2050
Age < 15 yrs
Age 15-59 yrs
Age 60+ yrs
22
19
22
20
17
18
2000-05
2011-12
2030E
Male
Female
• With the advancement of medical science, life expectancy has improved rapidly over the last few decades and demand for pension
based products will increase with the rise in life expectancy
•
•
Regulatory tailwinds like increase in commutation of pension corpus from 33.3% earlier to 60% will only benefit insurance sector
NPS contributes a significant portion of the retirement corpus in India and they are on track for a period of consistent high growth
over the next decade
1. Global Pension Assets Study, 2022 2. UN World Population Report 3. Ministry of Statistics and Programme implementation, Crisil, PFRDA, Census of India
26
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
India’s Growth Prospects & Financialization of Savings
Increasing in Financial Savings
6.7%
5.0%
4.3%
Fastest growing G20 Economy3 Average annual real GDP growth
3.0%
2.6%
2.4%
2.0%
1.9%
1.8%
1.7%
India
Indonesia China
Saudi Arabia
Australia
Turkey
Canada Mexico
South Korea
South Africa
Household Savings Composition1
59%
60%
61%
59%
41%
40%
FY17
FY18 Financial savings
39%
FY19
41%
FY20
Physical Savings
47%
53%
FY21
Average annual real GDP growth of 6.7% in the 10 years to 2032
55%
45%
FY16
•
•
•
Share of Life Insurance in Financial Savings1
7%
26%
17%
18%
7%
25%
3%
3%
37%
37%
17%
19%
10%
16%
16%
21%
11%
13%
2%
40%
18%
17%
9%
14%
6%
27%
17%
23%
13%
13%
F Y 1 8
F Y 1 9
F Y 2 0
F Y 2 1
F Y 2 2
Mutual Funds Bank Deposits Life Insurance Funds Provident & Pension Funds (Including PPF) Small Savings (Excluding PPF) Others
Household financial saving has improved to 7.6% of GNDI2 in 2019-20, after touching the low of 6.4% in 2018-19
Financial savings of Indian households may more than double in next 5 years
1. Reserve Bank of India, Handbook of Statistics 2. GNDI – Gross National Disposable Income 3. Swiss Re Report
27
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Industry Composition
Product portfolio1
Industry
13%
13%
11%
10%
11%
87%
87%
89%
90%
89%
Private Players
44%
56%
38%
34%
29%
29%
Higher ULIP contribution
62%
66%
71%
71%
among private players, though
traditional products forms the
major share of new business
FY 18
FY 19
FY 20
FY 21
FY 22
FY 18
FY 19
Channel mix2
Traditional
ULIP
FY 20 Traditional
FY 21
FY 22
ULIP
9%
25%
11%
27%
Industry
12%
28%
13%
29%
13%
32%
15%
33%
66%
62%
60%
58%
55%
53%
Private Players
18%
20%
23%
22%
22%
24%
54%
54%
53%
55%
55%
53%
Banca channel continues to be
the largest contributor for
private players although Direct
channel has gained momentum
28%
26%
25%
23%
23%
23%
in the past years
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
FY 18
FY 19
FY 20
FY 21
FY 22
FY 23
Agency
Banca
Others
Agency
Banca
Others
1. New business premium basis 2. Individual new business premium basis Source: Life Insurance Council, Public disclosures Components may not add up to total due to rounding-off.
28
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Annualised Premium Equivalent (APE)
` in billion
Segment
Individual Savings
- Par
- Non Par
- ULIP
Protection
- Individual
- Group
Annuity
Group Savings
APE
Channel
Bancassurance
Agency
Others
APE
FY 23
H1 FY 23
H1 FY 24
FY 21
94.6
9.7
10.7
74.2
12.0
7.3
4.7
3.0
4.9
FY 22
118.7
7.5
17.1
94.1
15.3
9.2
6.2
3.5
5.5
139.8
9.5
37.5
92.9
17.8
9.8
8.0
5.0
5.6
55.3
4.1
17.5
33.7
7.7
4.2
3.5
2.0
3.2
114.5
143.0
168.1
68.3
Y-o-Y Growth
17%
3%
(18%)
37%
39%
-
87%
45%
30%
21%
Mix (H1 FY24)
78%
5%
17%
56%
13%
5%
8%
3%
5%
64.7
4.3
14.4
46.1
10.7
4.2
6.5
2.9
4.2
82.6
FY 21
FY 22
FY 23
H1 FY 23
H1 FY 24
Y-o-Y Growth
Mix (H1 FY24)
72.3
30.3
11.9
90.2
37.1
15.7
114.5
143.0
108.3
43.2
16.7
168.1
43.1
17.3
7.9
68.3
49.9
21.4
11.3
82.6
16%
24%
44%
21%
60%
26%
14%
Components may not add up to total due to rounding-off
29
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Individual Annualised Premium Equivalent (APE)
Channel
Segment
FY 21
FY 22
FY 23
H1 FY 23
H1 FY 24
` in billion
Y-o-Y Growth
Mix (H1 FY24)
Participating
2.8
Non Participating
13.7
Bancassurance
Unit Linked
Total
Participating
Non Participating
Unit Linked
Total
Participating
Non Participating
Unit Linked
Total
52.6
69.1
5.9
3.7
20.6
30.2
1.0
1.8
1.0
3.8
Agency
Others
1.9
19.7
65.8
87.4
4.4
5.5
26.8
36.8
1.2
2.9
1.4
5.5
3.4
31.1
69.7
104.2
4.8
15.4
22.0
42.3
1.2
4.8
1.2
7.2
1.6
14.4
25.4
41.3
2.1
7.1
7.9
17.1
0.5
1.9
0.4
2.8
1.6
12.7
33.1
47.4
2.1
6.1
12.4
20.6
0.5
2.3
0.6
3.4
4%
(12%)
30%
15%
1%
(14%)
57%
20%
6%
20%
48%
22%
2%
18%
46%
66%
3%
9%
17%
29%
1%
3%
1%
5%
Components may not add up to total due to rounding-off
30
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Sensitivity Analysis
Scenario
Reference Rate +100 bps
Reference Rate -100 bps
Decrease in Equity Value 10%
Proportionate change in lapse rate +10%
Proportionate change in lapse rate -10%
Mortality / Morbidity +10%
Mortality / Morbidity -10%
Maintenance Expense +10%
Maintenance Expense -10%
Mass Lapse for ULIPs in the year after the surrender penalty period of 25%(1)
Mass Lapse for ULIPs in the year after the surrender penalty period of 50% (1)
Tax Rate Change to 25% on Normal Tax basis
Change in VoNB %
Change in IEV %
(1.0%)
1.0%
(0.2%)
(3.0%)
3.7%
(5.1%)
5.1%
(1.7%)
1.7%
(6.3%)
(14.1%)
(8.5%)
(3.7%)
3.4%
(1.6%)
(1.0%)
1.2%
(1.9%)
1.9%
(0.6%)
0.6%
(2.5%)
(5.5%)
(5.2%)
1. Mass lapse sensitivity (of 25% or 50%) for ULIP business is applied at the end of surrender penalty period as defined by APS 10.
31
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Customer Age and Policy Term
Average customer age in years
Average policy term in years
Par
36
Par
19
Protection
37
Protection
13
ULIP
Non Par - Others
40
40
ULIP
13
Non Par - Others
29
Overall
39
Overall
17
1. Age and term for individual products for Sep 23.
32
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Revenue and Profit & Loss A/c
Annexure
` in billion
Particulars
Premium earned
Premium on reinsurance ceded
Net premium earned
Investment income1
Other income
Total income (A)
Commission paid
Operating and other expenses2
Provision for tax – policyholders’
Claims/benefits paid (net)3
Change in actuarial liability4
Total expenses (B)
Profit before tax (A-B)
Provision for tax – shareholders’
Profit after tax
FY22
587.6
(3.3)
584.3
245.2
0.5
830.0
21.6
39.0
1.3
313.4
439.1
814.4
15.6
0.5
15.1
FY23
673.2
(7.3)
665.8
140.4
0.5
806.8
30.6
42.7
1.5
302.9
411.5
789.2
17.6
0.4
17.2
H1 FY23
H1 FY24
279.7
(4.6)
275.1
50.2
0.2
325.5
12.6
19.6
0.8
128.1
157.9
319.0
6.5
0.1
6.4
337.3
(5.8)
331.5
235.3
0.2
567.1
15.6
22.6
0.8
171.5
348.8
559.3
7.8
0.2
7.6
1. Net of Provision for diminution in the value of investment and provision for standard and non-standard assets. Includes provision for doubtful debts (including write off) and GST on charges. 2. Inclusive of interim bonus and terminal bonus. 3. 4. Includes movement in fund for future appropriation. Components may not add up to total due to rounding-off.
33
Key Indicators & Highlights
Balance Sheet
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
` in billion
Particulars
SOURCES OF FUNDS
Share Capital
Reserves and Surplus
Credit/(Debit) Fair Value Change Account
Sub-Total
Credit/(Debit) Fair Value Change Account
Policy Liabilities
Provision for Linked Liabilities (includes change in fair value)
Funds for Discontinued Policies
Funds for Future Appropriation
Total Liabilities
APPLICATION OF FUNDS
Investments
-Shareholders
-Policyholders
-Assets held to cover Linked Liabilities
Loans
Fixed assets
Net Current Assets
Total Assets
Components may not add up to total due to rounding-off
FY22
10.0
104.2
2.0
116.2
32.1
1,097.6
1,344.5
81.7
9.9
2,682.1
100.8
1,121.3
1,426.3
3.6
5.3
24.9
2,682.1
FY23
10.0
119.2
0.9
130.2
20.4
1,301.3
1,535.9
96.6
11.4
3,095.9
112.1
1,298.7
1,632.6
3.9
5.2
43.4
H1 FY24
10.0
127.0
2.7
139.7
30.6
1,425.6
1,747.1
106.1
15.3
3,464.4
127.1
1,441.4
1,853.2
3.6
5.4
33.6
3,095.9
3,464.4
34
Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Environment, Social & Governance :
Energy Management
Water Management
Recycle & Reuse
Other Initiatives
• Corporate office building is a Green Building; certified by Indian Green Building Council (IGBC) to comply with efficient use of natural resources and minimal waste generation
• Over 1250 Virtual servers created on 80 Host Servers resulting in power saving
• Drinking Water of previous office day collected from Staff Water Bottles - re-used to water the garden plants. 500 litres of water per month re-used
• Incorporated Rainwater Harvesting system - usage for cooling towers of air conditioning
• 240 kgs per month paper waste generated (old newspapers) - used for making envelopes
• 1850 kgs of E-waste
recycled
• 250 kgs of Wet Food Waste per month - converted into compost by Eco Composter Machine installed in HO
• 99% new business proposals logged digitally
• 94% renewal premium collected digitally. Renewal premium intimations & receipts sent digitally
• Creation of dense forest of 19,000 native plants with Miyawaki Technic
The data pertains to FY 23
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Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Environment, Social & Governance : Social
Employee wellness & people practices
Skill Development
Customer Centricity
Social Inclusion
• Work from Home policy
• Health check-up programmes & wellness sessions at pan-India level
• Employee engagement survey & Townhalls
• Performance appraisals & feedbacks. AIM (All ideas matter) for idea generation from employees
• Diversity and Inclusion ~ 19.04% women employees; increased by 41%
• Project Shakti to improve gender mix – 35% women advisors
• 136 modules created to enhance
knowledge and skills
• 94% CIFs & 92% Agents imparted training
• TISS LEAPVAULT CLO Awards 2022 - Best Induction Training Program
• 46 new e-learning courses launched. 49.3hr of learning in classrooms and 11.3hr of learning digitally.
• Training for smooth onboarding of sales and non sales employees – SAARTHI, UDAAN , SRIJAN.
• POSH Policy - Zero tolerance for sexual harassment
• Friday Pathshala – training on every Friday for all employees.
The data pertains to FY 23
• Customer Surveys (Net Promoter Score - 59) & awareness programs
• CSR policy & Corporate Social Responsibility Committee with clear roles and responsibilities
• Grievances of customers reduced (15 per 10,000 policies)
• CSR activities covering healthcare, education & environment
• Website & customer communication in vernacular languages
• 110k+ CSR beneficiaries; 36+CSR partners. CSR spend in FY23 `226 Mn +
• ISO 10002-2018 Certification (On customer satisfaction management system)
• 700k+ policies issued in rural areas & 1.1mn lives covered in social sector
• Next-generation digital technologies like Artificial Intelligence (AI), Machine Learning, Data Analytics
• Insurance Awareness Campaigns
• Micro Insurance products & PMJJBY for financial inclusion
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Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Environment, Social & Governance :
Board Governance & Diversity
Risk Management & Business Continuity framework
Information Security framework
Code of Conduct & Regulatory framework
• >60% Independent Directors on Board ensuring independence in governance
• Women Director on Board
• 8 committees chaired by Independent Director
• Diverse Board structure
• Well defined roles, responsibilities & accountability
• Board Evaluation process & results – driven action plan
• Risk management practices aligned to ISO 31000:2018 standard covering all departments & functions at Corporate Office, Central Processing Centre, Regional & Branch Offices.
• Formulated risk appetite statements & carry out ICAAP (Internal Capital Adequacy Assessment)
• Business continuity practices are ISO 22301:2019 certified
• Internal & External Audit certified by ISO 22301:2012
• Aligned to ISO 27001 – ISMS
Sustenance
• Acceptable Usage practices, technical aspects of IS, Secure coding practices, secure configuration practices
• IS requirements for SBIL for outsourced vendors
• Robust Information & Cyber Security Policy to ensure data security & protects from cyber threats
• Firewall, anti-malware solutions, E-mail security & filtering in place
The data pertains to FY 23
• Well defined Code of Conduct &
Ethics for employees
• Governed by various policies like Anti money laundering & CFT, POSH, Insider Trading Policy, Whistle Blower, Sales quality, Fraud Prevention, protection of policyholders interest, to ensure best practices
• Operational processes certified by ISO 9001-2015
• Stewardship Policy – Engagement with investee companies; voting policy & Disclosures.
• 15% of AUM invested in infrastructure & housing
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Key Indicators & Highlights
Abbreviations
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
Term
Description
Term
Description
GWP
Gross Written Premium
Opex
Operating Expenses (excluding commission)
NBP
NOP
APE
IRP
AuM
New Business Premium
CAGR
Compounded Annual Growth Rate
Number of Policies
GDP
Gross Domestic Product
Annualized Premium Equivalent
INR (`)
Indian Rupees
Individual Rated Premium
USD ($)
United States’ Currency
Assets Under Management
TAT
Turn Around Time
Banca
Bancassurance
ULIP
Unit Linked Insurance Plan
Traditional Segment
Traditional Channel
Other than Unit Linked Insurance Plan
Bancassurance + Agency
PAR
Participating
VoNB
Value of New Business
NON PAR
Non-Participating
VoNB Margin
Value of New Business Margin
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Key Indicators & Highlights
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
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 of a life insurance contract or a single lump sum payment from the policyholder.
⚫ Individual Rated Premium (IRP): New business premiums written by the Company under individual products and weighted at the rate of 10.00% for single premiums.
⚫ Renewal Premium: Life insurance premiums falling due in the years subsequent to the first year of the policy.
⚫ Gross Written Premium (GWP): The total premium written by the Company before deductions for reinsurance ceded.
⚫ Institutional Alliance: Business partners comprising of Corporate Agents, Brokers, IMF, CSC & POSP
⚫ Value of New Business (VoNB): Value of New Business is the present value of expected future earnings from new policies written during a specified period and it
reflects the additional value to shareholders expected to be generated through the activity of writing new policies during a specified period.
⚫ 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.
⚫ Embedded Value (EV):Embedded Value is the sum of the net asset value and present value of future profits of a life insurance company.
⚫ Embedded Value Operating Profit (EVOP):EVOP is a measure of the increase in the EV during any given period due to matters that can be influenced by management
⚫ Return on Embedded Value (RoEV): RoEVis the ratio of EVOP for any given period to the EV at the beginning of that period
⚫ 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.
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Key Indicators & Highlights
Disclaimer
Company Performance
Focus areas and initiatives
Macro Economic Indicators & Industry Overview
Annexure
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 prospectus or an offer document under any applicable law.
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 forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our strategy, our growth and expansion in business, the impact of any acquisitions, technological implementation and changes, the actual growth in demand for insurance products and services, investment income, cash flow projections, our exposure to market risks, policies and actions of regulatory authorities; impact of competition; experience with regard to mortality and morbidity trends, lapse rates and policy renewal rates; the impact of changes in capital, solvency or accounting standards, tax and other legislations and regulations in the jurisdictions as well as other. We undertake no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. Past performance is not a reliable indication of future performance.
The assumptions, estimates and judgments used in the calculations are evaluated internally where applicable and have been externally reviewed. They represent the best estimate based on the company’s experience and knowledge of relevant facts and circumstances. While the management believes that such assumptions, estimates and judgments to be reasonable; the actual experience could differ from those assumed whereby the results may be materially different from those shown herein. The recipients of this presentation should carry their own due diligence in respect of the information contained in the presentation.
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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 Website – www.sbilife.co.in
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