1Q14

1Q/2014 Performance Update
May 12, 2014
Premium Growth - All Type
1Q14
First Year Premium
%YoY
%QoQ
+199.69%
+656.90%
+47.54%
+97.81%
+103.84%
+231.59%
Renewal Year Premium
Total Premium
Source: Thai Life Association and The Company
26,997
TP
(Million Baht)
12,251
13,244
9,216
RYP
8,497
8,142
8,304
4,920
1Q13
7,908
1,308
2,358
6,194
1,948
2Q13
3Q13
4Q13
Industry
Industry
14,746
6,139
FYP
1Q14
1Q14
%YoY
%QoQ
First Year Premium
+32.06%
+38.36%
Renewal Year Premium
+18.72%
+2.72%
+23.38%
+13.69%
Total Premium
2
Premium Growth - Bancassurance
1Q14
First Year Premium
Renewal Year Premium
Total Premium
%YoY
%QoQ
+212.57%
+1,271.82%
+68.68%
+271.02%
+133.53%
+562.63%
Source: Thai Life Association and The Company
22,854
(Million Baht)
9,068
TP
9,787
RYP
6,160
5,333
5,376
13,786
3,449
4,411
5,208
952
3,389
1,944
2,444
1,005
1Q13
2Q13
3Q13
4Q13
Industry
FYP
1Q14
1Q14
%YoY
%QoQ
First Year Premium
+40.71%
+76.56%
Renewal Year Premium
+37.63%
+47.08%
+39.15%
+60.39%
Total Premium
3
Premium Growth - Agency
1Q14
%YoY
First Year Premium
+112.16%
-1.70%
+8.62%
-24.85%
+23.24%
-20.29%
Renewal Year Premium
Total Premium
2,951
Source: Thai Life Association and The Company
%QoQ
4,562
3,637
TP
2,933
2,783
(Million Baht)
3,663
2,753
2,535
2,479
2,572
416
304
361
1Q13
2Q13
3Q13
Industry
First Year Premium
Renewal Year Premium
Total Premium
RYP
899
884
FYP
4Q13
1Q14
1Q14
%YoY
%QoQ
+15.23%
+38.56%
+8.41%
-17.83%
+22.80%
-5.88%
4
Product Mix
Agent Channel
FYP (%Growth)
1Q14
Regular Endowment
Whole Life
Single Premium
Total
Bancassurance
Endowment
Credit Life
Total
Proportion (%)
1Q14
1Q13
50.14
36.41
51.54
(34.09)
14.99
48.32
380,569
48.61
0.14
112.55
100.00
100.00
FYP (%Growth)
1Q14
Proportion (%)
1Q14
1Q13
229.24
96.37
91.59
35.17
3.63
8.41
212.91
100.00
100.00
5
Product Mix
Total
Endowment
FYP (%Growth)
1Q14
Total
Endowment
Life Protection
Group Employee
Others
Total
1Q13
96.02
90.39
35.17
3.40
7.53
(22.10)
0.49
1.87
40.67
0.10
0.21
199.69
100.00
100.00
Others
Total
1Q14
218.35
Life Protection
Group Employee
Proportion (%)
TP (%Growth)
1Q14
Proportion (%)
1Q14
1Q13
110.23
96.23
93.44
35.14
1.86
2.80
3.84
1.80
3.53
10.13
0.12
0.22
104.15
100.00
100.00
6
Channel Distribution
First Year Premium
Renewal Year Premium
93%
Total Premium
74%
78%
85%
71%
49%
41%
10%
22%
13%
17%
6%
1%
4%
9%
Agent
Banc
13%
13%
2%
Others
7
Agency Force
Persons
750
TNQA : Thailand National Quality Awards
IQA : International Quality Awards
20,100
17,403
600
18,100
16,100
450
14,100
13,085
10,100
298
KTAL 93
OLIC 450
8,100
7,550
150
MTL 65
12,100
341
300
No. of TNQA of Industry 2012
AIA 1,002
6,100
113
77
2,409
49
43
4,100
2,100
BLA 599
100
0
TLI 791
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q14
TNQA
IQA
Active Agents
Registered Agents
Note : Active agent’s definition was changed in 2013
Persons
Single License
600
482
505
500
400
253
300
200
84
105
112
2010
1Q11
2Q11
145
186
205
2011
1Q12
298
320
3Q12
2012
= 72% of Target
Target 2014
Single License 700 persons
100
0
3Q11
2Q12
2013
1Q14
8
Premium Collection
Ordinary
Ordinary (%)
91
92
92
90
91
90
92
94
94
93
96
86
1Q14
2013
2012
2011
AIA
92
90
92
89
AZAY
89
88
87
91
TLI
87
88
92
85
SCBLife
86
86
88
84
MTL
86
82
90
91
KTAL
82
89
92
85
OLIC
78
75
84
91
Industry
88
88
90
88
1Q14
2013
2012
2011
KTA L
88
88
90
82
TLI
88
86
91
85
A IA
88
86
88
85
A ZAY
87
86
85
89
SCBLife
86
85
87
85
MTL
85
82
90
90
OLIC
79
77
82
85
Industry
87
86
88
86
All Type
88
90
90
89
90
91
91
93
93
93
86
96
A ll Type (%)
Source : The Thai Life Assurance Association
9
Performance Highlights – 1Q2014
Net Profit Movement
+288
Interest
Income
-102
+56.34
Dividend
&
Cap gains
Underwriting
Profit
17.65%
Opt.
Expenses
+43
Other
1,096 MB
922 MB
Net Profit
1Q2013
-25
+18.88%
Return on Equity
Net Profit
1Q2014
18.92%
10
Performance Highlights – 1Q2014
Shareholders’ Equity Movement
1,096
693
16
22,264
MB
24,069
MB
+1,805 MB
Equity
31 Dec 13
1Q14
Profit
Fair Value
gains
Others
Equity
31 Mar 14
11
Financial Position
Unit : MB
1Q14
%
2013
%
Chg. (MB)
Total Assets
196,908
100.00
172,235
100.00
24,673
Investment
187,764
95.36
165,983
96.37
21,782
336
0.17
327
0.19
9
premium receivable
4,107
2.09
1,840
1.07
2,267
Accrued Investment
2,498
1.27
1,863
1.08
636
Others
2,202
1.12
2,223
1.29
-21
Total Liabilities
172,839
100.00
148,905
100.00
23,934
Policy & Premium Reserve
160,235
92.71
137,638
92.43
22,598
424
0.25
400
0.27
25
7,405
4.28
7,380
4.96
25
214
0.12
299
0.20
-85
Others
4,560
2.64
3,188
2.14
1,372
Equity
24,069
13.93
14.95
1,805
Net premises + equipment
Unpaid Benefits
Other Insurance Liabilities
Employee Benefits
22,264
12
Shareholders Equity
Unit : MB
1Q14
2013
2012
24,069
22,264
19,465
Paid-up Capital
1,212
1,212
1,205
Share Premium
2,847
2,846
2,759
Unrealized gain (loss)
5,084
4,391
5,153
14,843
13,747
10,283
82
67
64
160,235
137,638
112,337
244%
268%
Total Equity
Retain earnings
Others
Life Policy Reserve
Solvency Ratio (RBC)
223%
13
Assets & Investment Assets
ROI
93
91
95
94
96
96
96
96
+25,739
MB
95
196,908
200,000
171,168
180,000
Avg. Total Asset growth:
160,000
+26.21%
Avg. Total Inv.Asset growth: +26.63%
140,000
120,000
100,000
44,410
80,000
60,000
40,000
5,092
20,000
0
Investment Assets
Total Assets
Investment assets / Total assets
14
Investments - Allocation
Unit Trust 3.36% Loans 2.11%
Unit Trust 3.19% Loans 1.93%
Stocks 7.29%
Stocks 7.80%
Bond
Debenture 22.11%
Bond
Debenture 23.87%
57.79%
63.50%
Short Term
Short Term
1.12%
5.93%
2013
Bond (Avg. Life 16.53 yrs)
Debenture (Avg. Life 8.46 yrs)
Bond
66.97%
1Q14
G-Bond
CB & TB
SOE
Foreign
BBB+ to A+
75.32%
7.39%
16.23%
1.07%
AAA
AA- to
AA+
A- to A+
Foreign
A+ to AA-
11.76%
14.52%
32.32%
41.40%
Foreign
Investment
% on
inv. assets
Fixed income
8.62
Unit trust
0.96
Total
9.58
Duration 31 Mar 14 =9.83 vs 8.82 at end of 31 Dec 13
15
Investments
8.3
ROI
5.5
5.6
5.8
6.4
5.8
6.7
7.0
6.9
5.5
6.5
5.3
4.8
5.4
5.5
5.1
5.0
4.8
4.7
187,764
2.3
28,590
ROI - Accounting
ROI - MTM equity
16
Investments - Income Breakdown
9.82
4.96
5.10
4.59
3.64
3.33
ROI
5.30
2.2
6.51
4.78
Cap Gains
Dividend
Interest
ROI before AP-Accounting
ROI before AP-MTM equity
17
Expenses - Reserve & Benefit Paid
Quarterly
76.3
Yearly
64.5
65.1
83.9
47.8
52.1
59.4
60.2
65.1
67.0
Reserve: Net Premium
90.29
Reserve: Net Premium
65.1
93.29
95.21
94.62
94.56
Baht
94.62
96.56
Million
Million
Baht
87.58
84.88
87.18
85.50
88.53
Benefit Paid
Reserve
= Reserve& Benefit Paid : Net Premium
18
Expenses - OPEX/Investment vs ROI
MB
MB
%
550
7
5.0
5.3
5.5
6
1,800
8.5
6.5
7.2
6.0
6.4
7.1
6.8
6.6
5.7
4.7
4.3
4.5
4.5
OPEX
5 1,400
3.6
4
400
1.9
3
2
1,000
600
1
250
0
1Q13
2Q13
3Q13
Operating expenses
%
3.9
3.7
3.9
4Q13
1Q14
% on Net Premium
3.5
3.3
6
Operating expenses
10
%
% on Net Premium
3.3 3.3 2.5 3.3 3.6 3.8 3.9 3.8
1.4 1.6 1.7 2.2 2.8
8
6
4
Spread
200
4
2
2
0
0
1Q13
2Q13
Adjusted OPEX/Inv. Assets
3Q13
4Q13
Net ROI
1Q14
% Spread
Adjusted OPEX/Inv. Assets
Net ROI
Spread (RHS)
19
Net Income
Net Income
Tax Rate
%
35
%YoY
1Q134
Net Income
%QoQ
18.88
Comprehensive
Income
21.13
-22.21
29.4
30
513.96
25.7 24.8
+17.64% YoY
25
-47.52% YoY
20
27.4 26.9
24.8
22.1
21.8
17.5
16.1
15
6,895
4,381
3,724
2,299
1,453
1,101
922
512
1Q13
2Q13
520
3Q13
Net Income
905
3,618
35
25
20
1Q14
31 28
30
1,789
1,096
291
4Q13
ROE
%
2012
Comprehensive Income
2013
22
24 25
23
23
21 19
15
15
10
20
Underwriting Income Analysis
Unit : MB
Net Premium
Inc. Policy Reserve
% of net premium
Benefits Payment
% of net premium
Commissions & Brokerages
% of net premium
Sales Promotion Expenses
Total Underwriting Exp.
Underwriting Income
% of net premium
1Q14
1Q13
%YoY
2013
26,729
12,994
105.70
38,513
34,121
12.87
22,432
9,919
126.15
25,076
22,866
9.66
83.92%
76.33%
65.11%
67.01%
3,378
2,362
10,851
7,942
12.64%
18.18%
28.18%
23.28%
1,025
878
2,705
2,758
3.84%
6.76%
7.02%
8.08%
115
112
2.49
352
334
5.32
26,957
13,278
103.01
39,015
33,917
15.03
-228
-284
19.83
-501
204
-345.83
-0.85%
-2.19%
-1.30%
0.60%
43.00
16.74
2012
%YoY
36.63
-1.92
21
Operating Performance
1Q14
1Q13
272
223
21.74
737
572
28.96
1,754
1,466
19.62
6,373
5,190
22.80
66
216
-69.47
592
481
22.96
2,091
1,905
9.77
7,702
6,243
23.38
-12
-14
-18.40
-54
-58
-5.47
9
7
25.54
39
20
98.38
2,089
1,898
10.04
7,687
6,205
23.88
ROI
4.78%
5.29%
4.98%
5.10%
Total Income on Und. & Inv.
1,861
1,614
15.30
7,186
6,409
12.13
424
432
-1.71
1,720
1,522
13.05
1.59%
3.32%
-52.11
4.47%
4.46%
Operating Profit
1,436
1,182
21.51
5,465
4,887
11.84
Earnings before tax
1,307
1,105
18.26
5,311
4,764
11.48
211
183
15.11
930
1,041
-10.59
16.12%
16.56%
17.52%
21.84%
Net Income
1,096
922
18.88
4,381
3,724
17.24
Comprehensive Income
1,789
2,299
-74.25
3,618
6,895
-34.52
0.90
0.76
3.62
3.09
22
Dividends
Interest & Discount Received
Capital Gain on Securities
Total Investment Inc
Advanced Premium Exp.
Others
Net Inv. Income & Other Inc.
Operating Expenses
% of Net Premium
Income Tax
% income tax rate
EPS
%YoY
2013
2012
%YoY
Operating Highlights
Asset
MB
Expense Ratio & Spread
%
220,000
202,000
184,000
166,000
148,000
130,000
112,000
94,000
76,000
58,000
40,000
22,000
4,000
10
8
1.2 1.6 1.7 2.2
2.8 3.2
3.3 2.5
%
6
3.3 3.6 3.8 3.9 3.8 3.3
2
6
-2
4
-6
2
0
Investment Assets
Total Assets
Adjusted OPEX/Inv. Assets
Underwriting Profit
MB
6
3.5
5,000
3.9
13
Net ROI
Spread (RHS)
Net Profit
MB
%
1,350
1,000
-10
12
15
24
23
%
28
23 20
19
40
20
4
4,000
2
3,000
-20
0
2,000
-40
-2
1,000
-4
0
0
650
3.0
1.0
300
0.6
0.6
-60
-50
-400
(1.1)
(0.8)
(2.2)(1.6)(1.5)
(1.6)
Uwriting Profits
% to Net Premium
(0.9)
(1.3)
-80
-100
Net Profit
Note : * Adjusted deferred tax
ROE
23
Capital Adequacy Ratio: CAR (As of Mar 2014)
20
18
16
140%
OIC
minimum
12
8
13.76 13.50
12.68 12.28
11.73
10.73
9.16
9.16
8.92
8.81
8.82 8.26
8.13
7.31 7.08 7.19 7.58 7.56
6
requirement
4
125%
(Aug 16, 2011 - Dec 31, 2012)
By Law
14.80 14.39 14.74 14.28
14
10
(Start Jan 1, 2013)
17.12
15.63
2
202% 197% 222%
252%
238%
274% 268% 265% 243%
266%
244% 223%
0
2010 3Q11 2011 1Q12 2Q12 3Q12 2012 1Q13 2Q13 3Q13 4Q13 1Q14
Duration of Assests
Duration of Liabilities
CAR
100%
Capital requirement
24
Market Ranking
Jan – Dec 2013
Ranking - Ordinary Premium 1Q14
First Year Premium
Company
MB
Company
MB
BLA
14,162
36.68
218.59
BLA
25,999
22.48
110.12
MTL
8,529
22.09
56.62
AIA
22,917
19.82
2.88
SCBLife
3,393
8.79
78.87
MTL
18,412
15.92
38.30
TLI
2,991
7.75
16.91
TLI
12,416
10.74
13.15
AIA
2,964
7.68
(16.17)
SCBLife
10,620
9.18
26.79
KTAL
2,588
6.70
8.44
KTAL
8,714
7.54
17.21
PLT
1,370
3.55
143.92
AZAY
5,297
4.58
9.81
AZAY
996
2.58
1.18
PLT
2,701
2.34
71.81
FWD
400
1.04
(17.57)
FWD
2,530
2.19
5.54
SEIC
387
1.00
336.42
TLA
1,642
1.42
(31.12)
38,604
100.00
50.03
115,633
100.00
27.53
Industry
Share (% )
Total Premium
% YoY
Industry
Share (% )
% YoY
Source: The Thai Life Assurance Association (Incl. Single Premium)
26
Ranking - All Type Premium 1Q14
First Year Premium
Company
MB
Company
MB
BLA
14,746
29.13
199.74
BLA
26,997
19.97
104.15
MTL
9,473
18.71
45.89
AIA
26,662
19.72
2.21
AIA
6,007
11.87
(11.67)
MTL
19,951
14.76
34.26
SCBLife
4,444
8.78
6.65
TLI
13,876
10.27
14.34
KTAL
3,924
7.75
21.86
SCBLife
12,250
9.06
9.33
TLI
3,602
7.12
18.27
KTAL
10,980
8.12
26.64
PLT
2,354
4.65
224.26
AZAY
6,404
4.74
12.85
AZAY
1,528
3.02
17.34
PLT
3,715
2.75
109.70
TCLife
870
1.72
57.89
OLIC
3,182
2.35
(5.53)
SEIC
732
1.45
43.95
FWD
2,821
2.09
7.16
50,623
100.00
31.82
Industry
135,173
100.00
23.27
Industry
Share (% )
Total Premium
% YoY
Share (% )
% YoY
Source: The Thai Life Assurance Association (Incl. Single Premium)
27
Ranking - Bancassurance 1Q14
First Year Premium
Company
BLA
MB
Share (% )
13,785
Total Premium
% YoY
Company
MB
Share (% )
% YoY
42.03
212.55
BLA
22,853
34.64
133.52
MTL
13,730
20.81
27.33
SCB Life
10,484
15.89
9.15
KTAL
6,595
10.00
28.19
MTL
6,504
19.83
21.42
SCB Life
4,088
12.46
6.41
KTAL
2,444
7.45
20.19
PLT
2,194
6.69
254.63
PLT
3,154
4.78
144.11
AIA
1,000
3.05
(6.45)
TLI
1,975
2.99
22.42
TLI
900
2.74
(0.32)
AZAY
1,676
2.54
25.58
AZAY
511
1.56
26.84
TLA
1,639
2.48
(48.96)
DLA
473
1.44
9,117
FWD
1,459
2.21
12.47
FWD
429
1.31
(22.33)
AIA
1,199
1.82
(8.33)
32,800
100.00
40.71
65,979
100.00
39.15
Industry
Industry
Source: The Thai Life Assurance Association (Incl. Single Premium)
28
Ranking - Agent 1Q14
First Year Premium
Company
MB
Share (% )
Total Premium
% YoY
Company
MB
Share (% )
% YoY
AIA
4,181
20.06
(13.84)
AIA
24,134
36.12
2.61
MTL
2,728
13.09
207.37
TLI
11,737
17.57
13.18
TLI
2,640
12.67
26.59
MTL
5,383
8.06
61.40
KTAL
1,039
4.99
7.70
KTAL
3,822
5.72
16.95
BLA
889
4.27
112.76
BLA
3,643
5.45
23.37
SEIC
597
2.87
21.17
AZAY
3,142
4.70
1.03
OLIC
572
2.75
(30.57)
OLIC
2,992
4.48
(6.08)
AZAY
398
1.91
(22.20)
SEIC
1,271
1.90
29.68
SCB Life
235
1.13
29.34
FWD
1,091
1.63
(5.14)
TMLTH
119
0.57
23.54
SCB Life
885
1.32
12.83
20,841
100.00
15.23
Industry
66,822
100.00
27.38
Industry
Source: The Thai Life Assurance Association (Incl. Single Premium)
29
Ranking - Credit Life (SP) 1Q14
1Q14
Company
MB
AIA
1,391
18.56
(19.23)
SCBLife
990
13.21
PLT
933
KTAL
876
Share (% )
2013
% YoY
% FYP
Company
MB
Share (% ) % YoY
% FYP
23.16
SCBLife
7,417
21.51
15.26
40.68
(52.51)
22.28
AIA
5,948
17.25
36.34
22.13
12.45
476.11
39.64
MTL
3,705
10.74
(1.24)
13.42
11.69
38.80
22.32
KTAL
3,413
9.90
35.64
23.36
MTL
778
10.38
(5.67)
8.21
PLT
2,616
7.59 324.75
43.74
DLA
530
7.07
(19.66)
83.25
DLA
2,519
7.30
225
74.74
BLA
501
6.68
35.47
3.40
BLA
1,834
5.32
29.19
17.41
TLI
374
4.99
11.93
10.38
TLI
1,530
4.44
12.69
10.36
TCLife
374
4.99
116.43
42.92
SEIC
1,500
4.35
32.64
72.43
SEIC
329
4.40
3.01
45.01
FWD
1,284
3.72 323.92
32.92
7,494
100.00
(9.50)
14.80
Industry
Industry
34,486
100.00
29.78
23.28
Source: The Thai Life Assurance Association
30
Market Penetration - Thailand & Regional
Thailand Source: The Thai Life Assurance Association , Dept. of Provincial Administration, Bureau of Saving and Investment Policy
Number of Policy per Population (%)
17
2004
18
2005
19
2006
21
2007
Regional 2012
22
2008
24
2009
25
2010
27
2011
29
2012
Total Premium per GDP (%)
31
31
3.44
2013
2M14
2.33
2.35
2.21
2004
2005
2006
2.38
2.44
2007
2008
2.87
2.93
2009
2010
3.72
3.12
2011
2012
2013
Source: Swiss Re, sigma No. 3/2013
Premium per capita (US$)
Premium per GDP (%)
4,025
31
Market Penetration - Thailand
Sum insured per GDP (%)
Sum insured per Population (Bht)
Note : * Sum Assured (Inforced) as of May 2013
Sum insured per Household (Bht)
Source: The Thai Life Assurance Association , Dept. of Provincial Administration, Bureau of Saving and Investment Policy
32
32
2013 Embedded Value &
Value of New Business
Reviewed By Ernst & Young Co., Ltd.
Embedded Value &
Value of One year New Business
Unit : MB
2013
2012
Embedded value
32,641
30,610
EV / Share (Baht)
26.94
25.40
Value of one year's new business
1,862
1,910
Value of one year's new business /
Share (Baht)
1.54
1.59
Number of shares (million shares)
1,212
1,205
(%)+-
+6.64%
-2.51%
Remark : Risk discount rate 10% , Return on Investment assumption = 5%
Note : Reviewed by Ernst & Young Office Co., Ltd.
34
Q&A
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