INVESTOR DAY 2018 Group Insurance & Takaful

Transcription

1 INVESTOR DAY 2018 Group Insurance & Takaful Presenters: Mr. Kamaludin Ahmad Group CEO, Etiqa Insurance & Takaful Mr. Lee Hin Sze Group CFO, Etiqa Insurance & Takaful 7 November 2018

2 KEY INITIATIVES OVER THE LAST 5 YEARS

3 Etiqa is keeping its focus simple FEBA Fast Claims Easy to be Dealing With Best Advice 3

4 What we have done for the last 5 years DIGITALISATION BUSINESS DEVELOPMENT CUSTOMER EXPERIENCE Applications programming Interface (API) Bancassurance Transformation Close & Regular Monitoring of Initiatives Fast & Easy Video assisted claims Etiqa Apps Revamping E-Channels Regional Growth Life / Family Takaful Agency Transformation New Innovative Products Etiqa Partner Portal Data mining & analytics Quest for Fire & PA Business Growing Long Term Sustainable Value in Life/ Family Brand Ambassadors 4

5 THE RESULTS

6 Our Achievements No 1 in Malaysia Combined General Insurance/ Takaful General Takaful Business Bancassurance / Bancatakaful Online Insurance/Takaful Fastest growing insurance company in Malaysia (across all segments YTD 2018, Life Insurance, Family Takaful, General Insurance, General Takaful) Strong agency force +8,000 (Insurance & Takaful agents) 27 branches/sales service centres FY2017 RM4.0b Net Adjusted Premium RM6.2b Topline RM34.5b Total Assets RM1.0b Profit RM81.0m Value of New Business Highest rated insurance & Takaful entities in Malaysia ELIB: A- (Fitch) AAA (RAM) EGIB, EGTB, EFTB: A- (Fitch) EIPL: A- (Fitch) +930 Wide Bancassurance network Maybank branches (Malaysia, Singapore, Philippines & Indonesia) & 3 rd Party Bank partners (in Malaysia) 6

7 Continuously Delivering Healthy Revenue A rising trend for gross premium and profit before tax (PBT) since the inception of the MAHB Group, registering CAGR of 15% and 21% respectively. In 2015, the PBT was affected by adverse equity market performance. while maintaining expense discipline Overheads in Million 6.0% % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Net Adjusted Premium in Million 10.6% 2,700 2,942 3,219 3,589 4,

8 LIFE & FAMILY TAKAFUL: KEY FOCUS AREAS

9 Growing Market Share Competitor 2 Competitor 1 9

10 New Business Profit Margin Life/Family COMBINED LIFE/FAMILY 25.0% 20.0% 15.0% Life/Family: NBP against Time (Profit Margin Growth) 20.9% 18.3% 16.9% 17.3% 18.4% 16.3% 14.4% 15.1% 15.2% 11.3% 12.0% 16.9% 14.3% 19.2% 17.8% 16.5% 12.3% 16.3% 15.8% 10.0% 8.0% 6.0% 5.0% 0.0% 3.0% -0.5% 0.9% -5.0% Q Q Q Q Q Q2 ELIB +EFTB NBP 16.9% 17.3% 14.4% 11.3% 12.0% 14.3% 17.8% 16.3% Banca NBP 16.3% 20.9% 18.4% 15.1% 15.2% 16.9% 19.2% 16.5% Agency NBP 18.3% 8.0% 3.0% -0.5% 0.9% 6.0% 12.3% 15.8% ELIB +EFTB NBP Banca NBP Agency NBP Improvement due to better profit margin products 10

11 Our Life Agency business recorded high growth INDUSTRY UPDATES Life Agency registered New Business Premium growth of 63% (Q2 FY2018 vs. Q2 FY2017) in a modest market environment - industry growth contracted by 3%. OUTCOME FROM APPROVED FOCUS STRATEGY, Q VS. Q2 2018: 30% increase in higher case size 28% in increased agents productivity, from 7.1 to 9.1 cases Launched new/enhanced regular premium investment-linked products, i.e. MaxiLink, MegaLink and Elite Medic Plus 32% increase in no. of manpower, from 728 to 962 YoY Achieved product portfolio mix: Investment-Linked 76% : Ordinary- Linked 24% 11

12 Regular premium new business Our Banca Transformation Banca Regular Premium Journey Y1P Year 1 Persistency SR/SRX Smart Retirement Smart Retirement Xtra SC/SCX Smart Cash / Smart Cash Xtra PVS Premier Value Saver Edu - Education 12

13 Our Banca Transformation: The Results 1H18: Banca Etiqa is #1 on Overall Life/Family New Business Annual Premium Equivalent, +40% YoY Banca Etiqa is #1 on Regular Premium/Contribution, +44% YoY Market Share Growth Life APE 21% (#1) Life Family APE 40% vs 8% (industry) RP/RC 22% (#1) RP/RC 44% vs 7% (industry) Life Market Share (New Business) data from LIAM as at 1H18 (YoY) Source: Family Market Share (New Business) data from MTA ISM as at Jun 18 (YoY) Life Family NB APE: 100% RP + 10% SP + 10% Credit APE Annualised Premium Equivalent NB New Business RP/ RC Regular Premium/Contribution 13

14 Market Share & Ranking for Life & Family Overtook competitors 1 & 2 and improved to 4 th ranking for Life & Family (Adjusted New Business) RM'million Market Share (%) 2,500 2,000 1,500 1, RM'million Market Share (%) 1, % 7.4% 8.0% -15.5% -9.5% 7.6% 7.6% Life & Family - Rolling 12 Months Market Share & Growth Trends (New Business Premium/Contribution) -4.7% 7.6% % 8.4% % 8.9% % 9.9% 1, % 42.1% 5.7% 7.4% 5.6% 5.0% 6.7% 10.5% 1, % 1,212 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun-18 Annualised (Regular) Prem/Contr -IL Annualised (Regular) Prem/Contr - OL Single & Group Prem/Contr Etiqa Growth rate (%) Industry Growth Rate (%) 4.0% 5.5% 72 Life & Family - Rolling 12 Months Market Share & Growth Trends (Adjusted New Business Premium/Contribution) 15.2% 16.7% 15.2% 11.1% 10.6% 13.5% 5.5% 5.5% 5.7% % 10.1% 9.5% 6.0% % 7.1% % 7.6% % 3.3% 2.2% 2.2% 8.1% Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun Growth Rate 50.0% 0.0% -50.0% % % Growth Rate 50.0% 0.0% -50.0% % % Etiqa vs Industry ROLLING 12 MONTHS % Share Rank Jul Jun 2018 SPLY Current SPLY Current New Business 8.4% 11.2% Adjusted New Business 5.7% 8.1% Single - OL & IL 25.6% 32.4% Group 3.7% 4.2% Single & Group 11.3% 14.3% Annualised (Regular) - OL 10.3% 12.1% Annualised (Regular) - IL 2.2% 5.4% Annualised (Regular) 5.0% 7.3% Etiqa Life & Family: New Business, 42.1% growth YoY; Adjusted New Business, 45.0% growth YoY 40.6% growth in Single & Group Premium/Contribution supported by higher production from Maybank Bancassurance through Single Premium Nationwide Campaign, as well as higher production from LPPSA business through Agency and higher number of submission and loan disbursement through Bancassurance. 46.2% growth in Regular Premium/Contribution contributed by higher average case size, intermediaries productivity supported by IA model coupled with higher persistency from Bancassurance. Industry Life & Family: New Business, 6.7% growth YoY; Adjusted New Business, 2.2% growth YoY The top 3 players in New Business collectively recorded 2.3% growth. The top 3 players in Adjusted New Business collectively recorded negative growth of -0.3%. 11.4% growth in Single & Group Premium/Contribution (particularly in Group). 1.1% growth in Annualised (Regular) Premium/Contribution (lowest as compared to the last 8 periods). 100% Annualised (Regular) Prem/Contr -IL 100% Annualised (Regular) Prem/Contr - OL 10% Single & Group Prem/Contr Etiqa Growth rate (%) Industry Growth Rate (%) Source: LIAM/ISM Statistical Bulletin Note: i. Adjusted Premium/Contribution is defined as 10% Single & Group Premium/Contribution and 100% of other premiums/contributions ii. OL Ordinary Life; IL Investment Linked 14

15 GENERAL INSURANCE/TAKAFUL: KEY FOCUS AREAS

16 Our Strategic Business Lines have shown continuous growth Fire and Personal Accident (PA) have continuously outperformed the market growth. We have progressed to become the market leader in PA business. FIRE PA Competitor 3 Competitor 2 Competitor Competitor

17 It is our mantra to become the fastest.. INSTANT WINDSCREEN PAYMENT IN 15 MINUTES (BNM TAT 7 working days) FAST & EASY PA CLAIMS FOR OUTPATIENT & HOSPITAL ALLOWANCE CAR ACCIDENT REPAIR APPROVAL WITHIN 30 MINUTES FAST & EASY CLAIMS ADVANCED FOR SME (CAPSME) (BNM TAT 7 working days and easiest Simply WhatsApp to No forms, no documents 24-hours approval 17

18 We are the first to introduce video-assisted claims E-CLEVA: Video assist claims - Fast claims from days to minutes Available for Customers via Claims Careline For fast-track claims like windscreen, minor car accident & home damage Have successfully tried it out on more than 40 Customers Average settlement time of 15 Minutes, compared to Days previously HOW IT WORKS? A video link will be sent to Customer s smartphone via text message. The live video would enable Customers to show their damages in real time, for further assessment. Once assessed, Offer Letter would pop up. Customers can sign in on their smartphone screens and payment would be instantly credited via M2e. 18

19 Increased competition seen over the last few years with tariff liberalisation also contributing to this Detariffication: The Challenges Premiums have been impacted by a decline in Agency and Bancassurance This is partly due to a conscious strategy to focus on more profitable segments in the market through Model Loss Ratio And partly attributed to strong competition in pricing for some motor franchises 19

20 Improving Model Loss Ratio Trends Etiqa s Model Loss Ratio by Month 73.0% 72.3% 72.2% 72.0% 71.6% 71.7% 71.9% 71.6% 71.5% 71.4% 71.0% 70.7% 70.4% 70.0% 71.0% 70.2% 71.7% 71.4% 71.3% 70.7% 70.8% 70.6% 70.4% 70.5% 69.6% 69.7% 69.0% 69.1% 69.2% 68.0% 67.0% Overall, Etiqa s Model Loss Ratio has improved and we continue to focus on a ROE of 12% for the Motor business 20

21 Market Share & Ranking for General Net Written Premium / Contribution Maintained ranking for General Net Written Premium/Contribution RM'million Market Share (%) 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, % 2.7% General - Rolling 12 Months Market Share & Growth Trends (Net Written Premium/Contribution) 2.3% 2.6% 2.3% 2.8% 2.5% 3.0% 3.0% -1.1% -1.0% -2.1% -2.0% -1.1% -0.9% 0.6% 10.3% 10.1% 10.0% 10.0% 9.8% 9.8% 9.7% 9.7% ,074 1,060 1,058 1,052 1,040 1,023 1,014 1,021 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Growth Rate 20.0% 0.0% -20.0% -40.0% -60.0% -80.0% % ROLLING 12 MONTHS % Share Rank Jul Jun 2018 SPLY Current SPLY Current Net Written 10.0% 9.7% Personal Accident 15.7% 17.3% Fire 8.0% 8.9% MAT 4.3% 4.3% MISC 1.9% 1.8% Motor 11.9% 11.2% Motor MISC MAT Fire Personal Accident Etiqa Growth rate (%) Industry Growth Rate (%) Etiqa vs Industry Etiqa General (Net Written), 0.6% growth YoY 3.4% growth in MAT supported by higher business retention from Regional Distribution. 15.3% growth in Fire contributed by higher production mainly from Agency and Bancassurance. 3.7% growth in Miscellaneous attributed to higher production from Agency. 5.7% growth in Personal Accident contributed by higher production from Agency, Enterprise Corporate and E-Channel. Industry General (Net Written), 3.0% growth YoY 0.2% reduction from top 5 players (46.9% of market share). Growth in all classes of business except Personal Accident. Source: ISM Statistical Bulletin 21

22 DIGITALISATION & OMNI-CHANNELS

23 E-Channel continues to grow despite new entrants eroding the market share 2017 GENERAL TAKAFUL 87.5% 2017 GENERAL INSURANCE 33.0% Legend: Etiqa s Market Share Remaining Market Share Note: Baseline Estimation According To Malaysia Internet Insurance & Takaful Industry - 12 months Performance Report Source: ISM Stastistical Bulletin; General Insurance & Takaful 23

24 We revamped our Sales Portals to be more Customer-centric 24

25 We ramped up our Marketing efforts via online Driving Etiqa s Brand Association with Fast & Easy #DEMI Nationwide Campaign in Growing PA Business AWAL ASHAARI TV PERSONALITY & ENTREPRENEUR 3.5 MIL FOLLOWERS 1.8 MIL FANS 1 st Etiqa video to cross 1 Million views Views rates are 62% higher vs. 39% Engagement rates are 500% higher vs. Industry Bancassurance s PA showed 79%* strong growth by branches leveraging on Card Replacement, Account Opening & ASB Cross Sell as touch points, boosted by the launching of #DEMI Campaign. Note: *From January 2018 until 1-7 May 2018 : Launching of #Demi on 29 March 2018 & went nationwide on 23 April 2018 onwards. 25

26 We Continue To Innovate Our Online Channel Continuously improve Etiqa Online Infosite accessibility and capability by improving the UI/UX Application Programming Interface (API) to facilitate motor renewal via M2U and 3rd party partners ACTION PLAN Inclusion of road tax renewal as part of the overall online renewal process Improve the system hygiene, i.e. fast loading speed, low system downtime and low system error / bugs Continuously improve the online sales funnel to increase conversion rate Recruit more online business partners to drive sales 26

27 IMPACT OF SPLITTING

28 We became 4 in 2018 BEFORE SUMMARY OF TRANSITION TO 1-JAN-18 ETIQA INSURANCE BERHAD (EIB) AFTER ETIQA GENERAL INSURANCE BERHAD (EGIB) Legend: ETIQA LIFE INSURANCE BERHAD (ELIB) MAHB MAHB New Company License Application Conversion from Existing Company License ETIQA TAKAFUL BERHAD (ETB) ETIQA FAMILY TAKAFUL BERHAD (EFTB) ETIQA GENERAL TAKAFUL BERHAD (EGTB) Prior to 1-Jan-18 1-Jan-18 Insurance / Takaful License EIB ETB ELIB EGTB Composite Composite None None Paid up RM152m RM400m RM1 RM1 Shareholder Y Y Y Y Life / Family Y Y N N General Y Y N N Headcount Closing EIB Composite ETB Composite No headcount ELIB Non Insurance No headcount EGTB Non Takaful Opening EGIB EFTB ELIB EGTB Insurance / Takaful License General Insurance Family Life General Takaful Paid up RM169.8m RM400m RM100m RM870m Shareholder Y Y Y Y Life / Family General Transferred to ELIB Y Y Y N Transferred to EGTB Headcount N Y 28

29 MOVING FORWARD

30 What we want to become in the future ACHIEVEMENTS Fastest growing Insurance Company across all 4 entities YTD 2018 #1 General Takaful operator in Malaysia #1 Bancassurance company in Malaysia #1 Online Insurer in Malaysia #1 Local Insurer in Malaysia Providing Advice that puts the Customer s Interest First Driving Technology across the Organisation ETIQA Creating a Fast & Easy Customer Experience Keep only our Highly Effective People AMBITIONS Preferred Partner to Banks #2 Family Takaful Operator Mid tier Insurance Agency Towards RM1bn E-channel sales Deliver new solutions within 2 weeks MEDIUM TERM FOCUS More Profitable General segments (Fire & PA) Growing Long Term Sustainable Value in Life/Family (Regular Premium) 30

31 THE END

32 APPENDIX

33 Group Insurance & Takaful Structure OPERATING ENTITIES 100% Brand name was launched in November 2007 DISTRIBUTION Etiqa offers all types of Insurance and Takaful plans through multi-channel distribution Bancassurance Agents Direct Retail Distribution Direct Marketing Enterprise Corporate Regional Distribution E-Channel AGEAS INSURANCE INTERNATIONAL 30.95% 69.05% MAYBANK AGEAS HOLDINGS BERHAD 100% Etiqa Life Insurance Berhad (ELIB) 100% Etiqa General Insurance Berhad (EGIB) 100% Etiqa Family Takaful Berhad (EFTB) 100% Etiqa General Takaful Berhad (EGTB) 100% Etiqa Insurance Pte Ltd (EIPL Singapore) ETIQA INTERNATIONAL HOLDINGS SDN BHD (EIHSB) 68.31% 75.0% 28.36% 25.0% MATRKECP ASIANLIFE & GENERAL ASSURANCE CORP. PT TRANSPACIFIC MUTUALCAPITA PT ASURANSI ASOKA MAS (ASOKA) 33

34 The Leading ASEAN Insurance and Takaful Provider Our focus is to grow the business in ASEAN Countries, leveraging on the high growth prospect and the Group s strong base in the region. 1 WHY ASEAN 2 TARGET COUNTRIES High growth region Maybank Group has strong base High population Stable and growing financial industry Established political situation and friendly regulation 3 PREFERRED CHANNELS Singapore Established Etiqa Insurance Ptd Ltd. ( EIPL ) a dual licensed insurance company (Life and Non-Life). Expanded into Life segment and transferred the existing Non-Life Business into EIPL. Philippines Ventured into Life & Non-Life Insurance via controlling stake of 68.3% in AsianLife General Assurance ( ALGA ), a composite insurance company. Indonesia Ventured into Non-Life Insurance segment via acquisition of 75% stake in PT Asuransi Asoka Mas ( Asoka ). The plan is to establish bancassurance business with Maybank Indonesia Group by tapping on its vast distribution network. Explore the potential to venture into Non-Life Shariah and Life Segment COMPLETED COMPLETED NON-LIFE: COMPLETED Bancassurance Online Direct Marketing 34

35 We Are A Diversified Entity GROSS PREMIUM By Line of Business 1H2018 against 1H2017 GROSS PREMIUM By Channel 1H2018 against 1H2017 LIFE/FAMILY BUSINESS MIX 1H2018 against 1H2017 GENERAL BUSINESS MIX 1H2018 against 1H

36 A balanced portfolio for each segment GROSS PREMIUM By Line of Business FY2017 against FY2016 GROSS PREMIUM By Channel FY2017 against FY2016 Conventional: 56.9% (2016: 55.9%) Takaful: 43.1% (2016: 44.1%) LIFE/FAMILY BUSINESS MIX FY2017 against FY2016 GENERAL BUSINESS MIX FY2017 against FY

37 Our Top Line and Market Share Note: Gross Premium, Profit Before Tax and Total Assets are presented at EIHSB level 37