Life Insurance Industry Results January to December 217 Media Conference 9 February 218
$million 1,4 Weighted Single Premium is based on 1% of Single Premium Weighted Annual Premium is based on 1% of Annual Premium with adjustment for premium payment terms of less than 1 years New Business (Individual Life & Health) Total Weighted Premium Weighted basis YTD Q4 16 YTD Q4 17 Q4 16 Q4 17 % change from corresponding period in 216 YTD Q4 17 Q4 17 Single Premium $1,25.1m $1,463.9m $294.2m $563.2m 43% 91% Linked $226.1m $395.4m $67.3m $173.8m 75% 158% Non-linked $799.m $1,68.5m $226.9m $389.4m 34% 72% Annual Premium $2,261.1m $2,624.3m $661.1m $777.3m 16% 18% Total $3,286.2m $4,88.2m $955.3m $1,34.5m 24% 4% 1,2 1, 8 6 4 2 682.1 187.3 28.6 466.2 562.8 575.4 661.1 529.7 65. 712.3 777.3 YTD: Year to date 955.3 844.9 88.2 811. 254.6 25.6 21.2 39.6 244.7 31.5 31.6 36.6 871. 22.3 45.7 1,65.7 31.6 51.8 1,34.5 49.8 72.4 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Weighted Single Premium (Non-CPF) Weighted Single Premium (CPF) Weighted Annual Premium 2
YTD Q4 15 ($2,998m) $831m 28% 53% $579m 19% New Business (Individual Life & Health) Total Weighted Premium YTD Q4 16 ($3,286m) By Fund $1,19m 34% 52% $464m 14% YTD Q4 17 ($4,88m) $1,465m 36% 46% $739m 18% $1,588m $17m 6% 94% $1,713m Linked Participating Non-Participating By Insurer Classification $19m 3% 97% $1,884m $11m 2% 98% $2,828m Normal $3,177m Defined Market Segments $3,987m Defined Market Segments (DMS): Insurers registered with MAS under Defined Market Segments are allowed to only conduct non-cpf business and are subject to a minimum policy size. 3
New Business (Individual Life & Health) By Distribution Channel YTD Q4 15 YTD Q4 16 YTD Q4 17 # % # % # % Total Weighted Premium $2,998m $3,286m $4,88m Tied Representatives $1,21m 4% $1,217m 37% $1,545m 38% Bank Representatives $1,98m 37% $1,253m 38% $1,58m 37% FA Representatives $587m 19% $675m 21% $793m 19% Others* $112m 4% $141m 4% $242m 6% Number of Policies 1,44,882 1,14,574 1,266,169 Tied Representatives 629,789 6% 653,69 57% 78,861 56% Bank Representatives 125,485 12% 133,24 12% 152,464 12% FA Representatives 123,911 12% 172,764 15% 217,135 17% Others* 165,697 16% 18,916 16% 187,79 15% Total Sum Assured $11.2b $116.6b $13.5b Tied Representatives $5.b 49% $53.8b 46% $56.7b 44% Bank Representatives $19.4b 19% $22.6b 19% $24.7b 19% FA Representatives $28.1b 28% $35.8b 31% $42.2b 32% Others* $3.7b 4% $4.4b 4% $6.9b 5% * Products sold without intermediaries e.g. ElderShield 4
New Business (Individual Life & Health) Total Sum Assured $million 12% 14, 12, 1, 11,225 116,636 13,49 8, 6, 4, 2, YTD Dec'15 Dec'16 Dec'17 5
Total Premium: No. of Lives: 227,851 234,177 $33m 14% 86% Individual Health Insurance Number of Lives Covered and Total Premium New Business YTD Q4 16 YTD Q4 17 $241m (Q1-$47m Q2-$56m Q3-$69m Q4-$69m) $374m (Q1-$66m Q2-$88m Q3-$14m Q4-$116m) 91% $33m 9% $28m IP and Riders $341m Other Medical Plans and Riders In-Force Business As at Q4 16 Q4 17 Total Premium $1,416m $1,693m No. of Lives 2.89m 2.96m An Integrated Plan (IP) comprises two parts: Part 1 is MediShield Life, run by the CPF Board to cover Class B2/C wards in public hospitals; Part 2 is an additional private insurance coverage, run by private insurers, typically to cover Class A/B1 wards in public hospitals or private hospitals. With effect from 1 January 216, MediShield Life premiums are excluded. 6
No. of Policies: Total Weighted Premium: 6,3 31% 69% New Business (Products Providing Regular Payouts from Retirement Age) Number of Policies and Total Weighted Premium YTD Q4 16 YTD Q4 17 2,297 25,775 $163m $212m No. of Policies 7,794 3% 7% 13,997 17,981 $37m 23% 77% Total Weighted Premium $49m 23% 77% $126m Single Premium $163m Annual Premium 7
Group Life & Health In-Force $million 11% 1,2 1,34.7 1,54.5 982.5 1, 981.7 972.3 978.7 8 1,78.1 1,9.8 6 4 2 As at 664.8 664. 671.3 682.7 735.5 755.3 776. 788. 316.9 318.5 31. 296. 299.2 299.2 32.1 32.8 Q1 16 Q216 Q316 Q416 Q1 17 Q2 17 Q3 17 Q4 17 A&H Life Life Accident & Health 8
Individual Policy Claims Payout & Maturity Number of Policies and Amount Amount ($million) 5 Claims Payout NOP 2,5 Amount ($million) 4, Maturity NOP 6, 45 4 35 3 25 2 15 1 5 2,4 1,923 1,839 1,79 1,893 1,858 1,887 1,947 1,443 1,539 1,53 1,416 1,463 1,38 1,669 1,668 217 212 25 216 212 228 217 227 94 1 93 96 16 1 116 119 123 112 112 12 16 128 11 18 2, 1,5 1, 5 3, 2, 1, 36,322 37,756 37,97 35,468 1,294 1,271 1,34 1,326 1,183 1,21 32,689 29,299 29,756 27,834 1,28 1,522 5, 4, 3, 2, 1, Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Death & TPD (Amount) Critical Illness (Amount) Amount NOP Death & TPD (NOP) Critical Illness (NOP) TPD: Total & Permanent Disability NOP: Number of Policies 9
Forfeiture & Surrender Rates % 3 Forfeiture Rates % 3 Surrender Rates 2 1.52 1.39 1.35 1.31 1.6 1.57 1.54 1.51 2 1.81 1.78 1.79 1.77 1.77 1.81 1.75 1.73 1 1 YTD Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Forfeiture Rate = (YTD Forfeitures * 4 / No. of Qtrs Elapsed) / [YTD NB +NB1+NB2+ NB3] NB1 = New Biz for Reporting Year 1 NB2 = New Biz for Reporting Year 2 NB3 = NB in Q3 to Q4 of Reporting Year 3 if Q=1 = NB in Q3 to Q4 of Reporting Year 3 if Q=2 = NB in Q4 of Reporting Year 3 if Q=3 = if Q=4 YTD Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Surrender Rate = (YTD Surrender * 4 / Q) / [IF4 * (1 Q / 4) + IF3 *(Q / 4)] Q = No. of Qtrs Elapsed IF3 = Annual Premium in Force, Year of Reporting 3 IF4 = Annual Premium in Force, Year of Reporting 4 Forfeiture policies are policies terminated before any cash values have been accumulated 1
Total Assets $million 2, 15, 12% 194,294* 188,248 182,427 173,142 173,13 163,776 167,227 27,298 27,676 29,281 29,51 31,122 32,67 32,888 1, 136,478 139,551 143,861 143,53 151,35 156,181 161,46 5, As at Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Non-linked Fund Linked Fund * Preliminary Source: Monetary Authority of Singapore 11
Manpower Number of Employees & Tied Representatives No. of Tied Representatives 16, 15, Tied Reps 14,669 14,42 14,793 No. of Employees 1, 9, 14, 13, 12, Employees 6,371 6,663 7,429 8, 7, 11, 6, 1, As at Dec'15 Dec'16 Dec'17 5, No. of Tied Representatives No. of Employees 12
Life Insurance Industry Results January to December 217 Questions & Answers
Term used Single premium (SP) policy Annual premium (AP) policy Total weighted premium Weighted single premium Weighted annual premium Linked fund Participating fund Non-participating fund Normal insurer Defined market segment (DMS) insurer Tied representative Bank distribution / representative FA representative Sum assured Integrated plan (IP) Rider Forfeiture Surrender What it means A policy where the customer is required to pay only a one-time premium. A policy where the customer is required to pay premiums on a regular frequency over a period of time. A way to measure growth of the life insurance industry by taking into account fluctuations in the total premium from single premium business, which is sensitive to market conditions: Total weighted premium = Total weighted single premium + Total weighted annual premium 1% of the amount of single premium. 1% of the amount of annual premium. However, where the premium payment obligation is less than 1 years, an adjustment is made. For example, an annual premium policy with a 7-year premium payment obligation will be reflected at 7% of the amount of annual premium. A fund that pools together premiums paid under investment-linked policies, and invests in a portfolio of assets to achieve the fund's objective. The fund may be managed by the insurer or external fund manager(s). The price of each unit in a fund depends on how the investments of the fund perform. A policyholder may sell his units to take advantage of price gains. A fund that pools together premiums paid under participating policies. A policyholder receives a share of the investment profit made by the life insurer in the form of a "bonus" or "dividend". Bonuses or dividends are not guaranteed as it depends on how the fund's investments are performing, how many policy claims are drawn from the fund and management expenses incurred. A fund that pools together premiums paid under non-participating policies. A policyholder is not entitled to any profits that the fund may make. An insurer registered with MAS to serve the retail market. An insurer registered with MAS to only conduct non-cpf business and with certain policy size condition. A person who represents one life insurer, and can advise on the products of this company. A person who represents one bank, and can advise on the products of one or more life insurers with which the bank has a distribution agreement. A person who represents one Financial Adviser (FA) firm, and can advise on the products of the several life insurers with which the FA firm has distribution agreements. Amount of death benefit. It comprises two parts: Part 1 is MediShield Life, run by the CPF Board to cover Class B2/C wards in public hospitals; Part 2 is an additional private insurance coverage, run by private insurers, typically to cover Class A/B1 wards in public hospitals or private hospitals. An extra benefit that can be bought on top of the basic policy. Policies terminated before any cash value has accumulated. Policies terminated after having acquired some cash value. Commonly, it takes two to three years for cash value to accumulate.