ageas SA/NV (AGS) Earnings Call Transcript & Summary

Good afternoon to you all, and welcome to our second deep dive on Ageas in Asia. During the first session in December, we focused on our collaboration in typing life insurance. And it is, of course, the main or the biggest contributor to our Asian results in terms of both inflows and net profit, but it is far from being the only one. There are 2 other partnerships that have remained quite under the radar in our conversations with you, but they certainly deserve that you take a closer look at them. I'm talking about Thailand and Malaysia. They are -- they represented in our 2021 results around EUR 130 million of net profit, and they've been contributing to our free cash flow already for several years. Luisa and K.K, the Ageas representatives in our local JVs will give you more insights on our current operations and the future potential of the partnerships. After a short break, we will then pass to Philippe for the 2021 update on t{hUHe metrics we introduced during our December deep dive on Taiping Life. And the last topic of the day will be addressed by Christophe and it's on capital generation related to our JVs. We will end today's deep dive with your cues and hopefully questions for either one of our speakers, just put them in the chat, and we'll tackle them to the extent possible to the Q&A session at the end. But first things first, over to Luisa.

Good afternoon. I am Luisa Evaristo, and I'm delighted to be here to the [ Ageas ]. Myself, I am based in Malaysia in the capacity of Chief Risk Officer of Etiqa Insurance and Takaful since 2014. I am also the Ageas Asia Country Manager for the countries covered by this partnership between Ageas and Maybank. Prior to coming to Asia, my professional experience entities. In the past, I led and managed the implementation of all pillars of Solvency II across the group Ageas covering the fully own participations as well as majority stake participation. And throughout my 28 years of experience within Ageas, I have performed the level and at corporate level, doing initiatives from valuation and advisory on employee benefits for life business on Non-Life Insurance with P&L and without P&L responsibilities. Going to our Malaysia joint venture, I must say that it is a very diverse for commercial lines and retail lines, on life and Non-Life, employee benefits for traditional insurance as well as Islamic insurance, which I was mentioning Takaful. Etiqa has four individual licensed insurance companies, which are in Peninsula, Malaysia, a life insurer and one combined license insurance company in Singapore, EIPL, Etiqa Insurance Private Limited. All these companies are under the financial holding Maybank Ageas Holdings Berhad. Ageas has value to the organization throughout support framework, support the realization of the strategy. And that is then supported by Ageas group experts based in Europe or in Asia and which is then coordinated by the Country Manager in close collaboration with the business -- the local business. In addition, Ageas also has assigned to the operations on a day-to-day basis. Myself is group CRO at [ holding ], I report to the local group CEO. And I am covering all the entities based in Malaysia and in Singapore. In this capacity, I have oversight over the activities and assurance that companies are achieving a proper risk management balance aligned with the risk appetite that is set by the Board. In this role, I work, as I mentioned before, very closely with the CEOs, executive teams and the Board stepping forward from this crisis and the emerging risk landscape, take decisions providing top management with perspective with scenarios and with guidance on strategic business risks when to take them and for which expected financial, organizational health and reputational rewards. Closely involved in the transformation and digitalization of the business, covering in a holistic manner, the risks, including cyber risk, technology, fraud, [ people ], model, compliance risk and also wider external risks, including climate risk and geopolitical risks. We also have a head of customer advocacy that covers all the entities based in Malaysia and which focused on customer management. So it is a centric customer approach that manages all the related processes and approaches supported by a very strong Net Promoter Score analysis and reporting to the management as well as a discussion of all the necessary the actions that will enable as to provide a fast and easy experience to our customers. The CRO in EIPL reports also to the CEO in EIPL and performs the same key risk role, also influencing and advising the business aligned with a set risk appetite and strategies established locally aligned with the group insurance and Takaful also respecting the frameworks and local regulatory requirements. In addition to these executive roles, Ageas as representation at Board level for all the 7 subsidiaries of Maybank Ageas Holdings based in Malaysia and in Singapore. Ageas leaders are nonexecutive Board directors at entity board level as well as at its [indiscernible] board technical committees such as risk board committees, audit, board committees and the IT development committees. Exclusion made to the Audit Committee of the subsidiary in Singapore. And Maybank is the main distributor of insurance products and services as Etiqa ranks first position in bancaassurance since several years in Malaysia. In addition to the sales distribution, Maybank cascades to the operation standards and best practices that are then localized by Etiqa Insurance and Takaful. Maybank is also the center of expertise for many other functions and provides great support on operational areas common to insurance and banking, for example, IT and human capital. Going now to the partnership overview between Maybank and Ageas, it was the oldest partnership in Asia with more than 20 years of existence, while Ageas was looking for an opportunity in Malaysia, Maybank, which is the largest Southeast Asian Bank had bought a small insurer and was looking for a partner to complement them with insurance expertise and bank -- and increase -- sorry, and increase the bancassurance model, make the bancassurance model implemented. It has been really a successful partnership as we became the #1 insurer for Non-Life business and the #4 insurance with, respectively, 15% and 12% market share. So together, we launched the bancassurance operating model and business, which remains leading today in the market. And this business still offers a strong potential of growth for the years to come. If we look at the GDP of Malaysia, it was MYR 1.5 million, around USD 347 billion at the end of 2021. It has been growing by 3% year-on-year. And 2020 -- from 2020, it has shrunk actually 5.6%. The forecast for 2022 is to have a growth of the GDP between 5% to 6%. There is also enormous potential to penetrate because today, the premiums as a percentage of the GDP in Malaysia stands at around 4% in life and 1.5% in Non-Life resulting in a total of 5.5% penetration rate overall in a combined basis. To give you a comparison, the world average amounts to 7.4% and 9% in the OECD, so there is still a significant growth potential just by increasing the penetration rate. In terms of Life Insurance and Takaful, penetration rate is around 56%, meaning that almost half of the population is still today without a life or family Takaful coverage. In addition to the business potential of collaboration with Maybank is also enormous. Maybank a sizable customer database with overall around 22 million customers, [ 2.2 ] branches and 46,000 employees, while Etiqa which has an exclusive bank distribution agreement with Maybank has over 4.5 million customers. Since 2014, as I mentioned before, our collaboration was expanded to Singapore with an exclusive distribution agreement with Maybank, focusing mostly on Non-Life business. All insurance services and products are sold in both countries under the Etiqa brand, which has been strengthening over the years. Maybank Ageas operating companies are financially strong as we can see over there, and resilient being rated by Fitch with A rating. And in particular, our general insurance Berhad business in Malaysia has been rated by AM Best, A-. Our rating is higher than the country rating as you can see in our slides in Malaysia. Through the years, Ageas and Maybank support has evolved from being deeply involved in the companies to provide oversight and support. Business in Malaysia and in Singapore remained growing successfully and expanding its coverage via digital and online, as I'm going to speak after being EIPL, an example of the digital growth beyond bancassurance. This graph shows that since 2016, we have consistently and stably growing across all the business lines on the basis of CAGR from 2016 to 2021 and starting from the bottom to the top right. In orange at the bottom, we have the life insurance and family business, which overall CAGR, sorry, in 2020 -- sorry, where the overall CAGR is 20%, while the industry was 9.2%. Etiqa, regular premium business CAGR was 18.4% and versus the industry, which was 9.2%. Etiqa investment-linked regular premium was 45% while the industry was 7%, which demonstrates that we have been growing higher than the industry. If we look now at the yellow bars, we have then the general insurance and general Takaful which also has been growing above the industry. So the CAGR was 4.8% overall, while the industry was 4.5%. And in particular, for Etiqa business, CAGR was 7.3%, while the industry was 6.8% fire and on motor where we had a CAGR of 6% versus industry, which was around 5.8%. And more recently, in 2020 and 2021, if we look now at the dark purple color, with our strong online presence and digital capabilities. Our life Singapore has grown significantly and got well positioned as a digital market leader when market dynamics was changing, amid the COVID crisis situation. We have been there growing in products which are short pay and low margin, distributed throughout a strategic partnership with [indiscernible]. Going forward in this business, our ambition is to transition to enhance margin and capital efficiency products like investment-linked products, protection and participating business as well as to grow the Non-Life business, which as you can see on the light purple color has been rather constant over the years. Overall, we may say that inflows have been resilient despite the cold as Etiqa managed to leverage its strong digital capabilities and continue engaging with customers despite the challenges that were brought by the pandemic. As mentioned previously, the increasing trends recorded by the technical liabilities demonstrate that over the years, we have been always growing steadily. And despite the challenges of COVID, our CAGR was around 10%. Our premium inflow has tripled over the past 6 years, as you may see in this slide, this has been mostly contributed by the new business, which has significantly increased. Focusing, in particular, recently into more premium of single products which were sold digitally as it was easier during 2019, 2020 and 2021 to sell digitally the single premium or short pay products throughout our digital sales and our partnership in Singapore, as explained before. going back to our Malaysia business and now focusing on the Life products. How are we distributed. We have 1/3 of our Life product mix that comes from risk products, so protection products, mortgage and credit insurance, term insurance, hospitalization and medical covers as well as group insurance, then 1/3 of our Life business is contributed by the unit-linked products. And the remaining of the business comes from nonparticipating savings as well as participating savings that include also annuity business and RIAS as well as employee benefits business. We rank #2 in Takaful Insurance, which represents 48% of our Life inflows. Overall, we rank #4 when we combine Life and Non-Life altogether. If I try to focus now on the Takaful business, so the Takaful business is an Islamic insurance, which if I try to define to you it corresponds to an arrangement, which is based on a mutual assistance where Takaful participants agree to contribute to a common and providing mutual financial support to participants or their beneficiaries on the occurrence of pre-agreed events as stated in the contract and subject to Sharia principles and requirements. What are the Sharia principles? Let me give you just a few examples. So we need to validate that certain investments comply with the requirements. So for investments that are not allowed or permitted like, for example, equity investment on Hacol manufactures we cannot have those assets backing our liabilities. Also on our Takaful products, we have to apply a different terminology that terminology used, for example, regarding an insured person, we refer in the Takaful certificates as a participant. The insurer is referred as the Takaful operator. The premiums are reflected as contributions. And life insurance is family Takaful, as I've been mentioning before. The contribution is subject to a specific charge, wakalah fee, to cover expenses, including commissions of the Takaful operator, with the remainder of the contribution to cover claims or reserves of future claims for family contracts with a survival type benefit. The remainder of the contribution is then split to cover claims and investments. The fees are split in a predefined way contractually, and claims profits and investment income is shared according to the predefined proportions and criteria between participants and the Takaful operator. Claims losses are then funded by the reserves, filing which the operator makes an interest-free loan redeemable from future profits. If we look now at our Life distribution, we are largely distributing our products in Banca and as you can see, more than the market, higher than the market, the market around 40% is bank distribution. And this is obviously linked to the fact that we have very strong ties with Maybank. And Maybank being the biggest bank, we distribute significantly products throughout them. The core products distributed are protection, credit insurance, banking, mortgages, participating business, investment-linked business including [indiscernible] and non-participating business. If we look then at the 37% of nonbank, it actually consists of products that are distributed by agency around 27% and group employee benefits, which represents the remaining 8%. We rank the eighth position in Singapore against our peers, which is really a successful story. And in 2021, we were #2 in Life Digital Insurance. Our main products are participating business and Universal Life products as well as traditional non-par products. And back at 2021, really at year-end, we started introducing investment-linked products. Our focus is on expanding the product suite and roll out enhanced margin investment-linked products and cross-sell more protection products throughout the portfolio. Rebuilding our power franchise and product offering to optimize and intensify the bancassurance channel sales throughout Maybank is another focus that we have for the coming years, capitalizing on the Maybank Singapore strength, such as auto loan market share and also targeting to penetrate on the high net worth segment, providing legacy solutions and the range of protection products. Going to the distribution across the channels, you can see that actually in Singapore, we are rather diversified. We have the exclusive Banca Life distribution through Maybank with a strong parental support being part of the same banking group. Digital, as you can see, actually marks a higher distribution compared to the market. We have really big portion of business that is sold throughout digital because digital continues being a cornerstone of our strategy since the establishment of Tiq by Etiqa 2018. As I mentioned before, with our strong online presence and digital capabilities, EIPL is really well positioned as a market leader when market dynamics changes. Online channel is expected to continue to grow exponentially in the coming years. With the increased acceptance of online distribution for Life and GI products which in Singapore is very much supported by the regulator, who is very keen to promote fintech and other technological advancements such as open banking or open insurance. They also create their projects that are regulatory sandboxes to develop digital banks and digital insurer licenses. Digital is really a key differentiator and fully aligned with the Impact24. If we go now to the Malaysia Non-Life business, you can see that we are a clear leader in both total general Takaful and insurance is very significant. It has very significant market shares. We have 44% in general Takaful and 14% overall for insurance and general Takaful. We are a leading company on retail business, a market leader for personal accidents with a market share of 21% and while we rank second position on Fire and Motor sales with a market share of 13%. We have the largest portfolio for commercial lines in the Malaysia market, and if we look at our peers to give you an indication, Alliance ranks #1 on motor. And Lonpac is actually our peer that ranks #1 on fire. The general insurance market has been over the past years rather flat as a result of the pandemic that we have been experiencing recently. If we now look at the breakdown of the products, you see that our main business line is motor. The market in Malaysia is submitted the tariff and deviations from the tariff required regulator approval. If we look now at the breakdown per channel, you're going to see that we are much more diversified than the market. For Etiqa, agency remains the main contributor. If we look at the market, it is heavily reliant on agents. In Etiqa we have there a strong additional distribution of our business throughout brokers, banker and a more stronger online presence comparatively with the market. Let me give you an overview of the challenges and opportunities that we have been experiencing and we are experiencing as market volatility and economic development, slow recovery and impact on investments as well as profitability has been something that has been touching the insurance business. So if we look at the challenges, obviously, we have the digitalization. We can say that it is actually an opportunity as digital services increased usage is seeing the expectation of our users and policyholders towards having services fully available as reason. As such, our products and services need to be available at all times and digitally to make sure that we can penetrate and enable a better customer satisfaction. Etiqa has been transforming its operations supported on data analytics to enable a fast and easy customer experience, really targeting the growth drivers of personalization in Malaysia and the speed of innovation in Singapore, as I mentioned before. We have been managing around 22 digital initiatives to make sure that we are ready and that we can achieve the expectation of our customers. Then giving you a highlight of sustainability, which is an area where we have been very much focused. We started by creating awareness. And meanwhile, now, we have been really fastly evolving and developing our journey, having formulated our sustainability covenants as well as identified our sustainability ambitions over the past year. In this, we are taking guidance from both Maybank and Ageas to ensure that our sustainability efforts are aligned with our shareholders. Key initiatives that we have been developing in sustainability relates to identifying our Etiqa's carbon footprint, developing and formulating internally ESG benchmarks for our investments and developing ESG products and services, including our drive less and save more motor insurance add-on that encourages less driving. Then what we have also been experiencing as a challenge is the intensified competition, the entrance of new players and market disruptors. Again, with our strong digital and innovative capabilities, we keep on rolling out tools and services, as I mentioned before, very much supported on data analytics and technological tools and applications to make sure that we remain attractive and that we support our intermediaries and business partners. Throughout the past years, COVID has introduced a new normal, we have been experiencing their successive movement control orders. And we have faced major challenges such as the closure of agency offices as well as car sales that dropped, shows rooms that were not in operations, travel insurance which also was no longer needed because there was no traveling happening and customers that have been much more cautious. However, this has led towards an opportunity as we have been focusing on enabling the reach out to our customers digitally and still being able to grow and provide them the services that were key to them while launching innovative products, as I mentioned before, drive less, save more which are completely aligned with the experience that the customer is having. Once they drive less, they can then get and enjoy refund of their premium as they have not been taking the risk of driving. If I now focus on the alignment of our strategy with Impact24 in Ageas for Malaysia. Our ambition is to be the largest Asian owned insurance and Takaful by 2025 and become the #1 digital insurer. What are our growth engine? We want to unlock our full potential being the bank preferred partner. We have been developing platforms to enable our agents to sell motor, and this is being extended to other lines digitally supporting our intermediaries. We are building and expanding our footprint as I mentioned before, targeting to be the #1 digital insurance of choice in ASEAN. And then we are launching some leverage platforms like all things auto, which covers all services beyond claims on motor. And we are also with another platform to support life and family partner distribution. So Etiqa Partner Portal, which provides the necessary dashboards. If we move then to Singapore. Singapore also have the ambition to be top 5 life insurer to grow in GI, as I referred and became top 10 -- also be the #1 digital insurer. And while we are trying to grow and bring these engines forward, we are unlocking our potential of the core by intensifying the lines that we already sell today with efficiency improvements and introducing more cross-selling and upselling of different products. On the other hand, we are building and expanding our footprint with advisory channel, achieving there -- the scale we need to grow the general insurance business. And then what are the leverage platforms that we have? I referred also before, we launched Tiq in 2018, and we have the Dash and the AMBER platform, which is providing retirement services and support to the needs of the population. At the same time, we are expanding on a adjacent business beyond the core. As I also referred at the beginning of this presentation, we want to really expand on protection business, and we are launching and growing or targeting to grow now on investment-linked business. If I now give you just an indication of our results. So you see that we have been, over the years, very much aligned on the local and IFRS net results. It has been steadily slightly growing over the years, giving a return on equity between 10% to 12%, so a profitable business. And then with payout ratio throughout the dividend contribution to the different shareholders, which has been, over the years, always paid, reflecting the profitability and which demonstrates a payout ratio of around 36%. And after showing you our stable and solid dividend contribution, I end my presentation. Thank you very much.

Well, we thank you, Luisa, for interesting insights in not only the Malaysian but also the Singapore insurance sector and the way Etiqa navigates in it. So thank you very much. And now over to KK and his story on Thailand.

Hello, and good afternoon. I'm KK, and I'll be giving you an overview of the Ageas operations in Thailand today. First of all, a little introduction on myself. I have 20 years of industry experience, 10 years at NTL, appointed Chief Bancassurance Officer in 2014. I'm also the Country Manager Thailand for Ageas and previously held various senior roles in other insurance companies across Asia as well as in retail banking for a bank in Mainland China. I have an engineering background with a master's degree from the Massachusetts Institute of Technology. On the governance structure in the Thai operations. Apart from representation on the boards of both Muang Thai Life and Muang Thai insurance, which is a Non-Life company. Ageas is present in all committees, except audit in MTI. MTI is a listed company on the Stock Exchange of Thailand. So only independent directors are represented there. Ageas has memberships in all operating executive committees. Ageas entered Thailand in 2004 in a joint venture with the Lamsam family who founded the Muang Thai insurance businesses. So it was a market with tremendous growth potential and still is today, The population of Thailand today is about 70 million. GDP is just slightly over USD 500 billion. The group forecast for 2022 is somewhere around 3%. Insurance penetration is still low with premium to GDP ratio of 3.7%. From another perspective, there are 20 million policies in force as at 2020 relative to the population of 70 million. So market penetration is thus around 30%. Accounting for people holding more than one policy, the actual market penetration is far lower. The Muang Thai brand is one of the most reputable brands in Thailand, with strong financial standing. MTL is rated BBB+ by S&P and A- Fitch compared to BBB+, which is the credit rating for Thailand as a country. To illustrate the standing in the industry, MTL has been awarded for 15 consecutive years as Life Insurance Company of the Year, first place since 2006 for outstanding management by the Thai Office of Insurance Commission, OIC. It has also been named Micro Insurance Company of the year for 8 consecutive years since 2013 by the OIC for its participation in the promotion of micro insurance policies. This is a couple out of the many awards and recognition Muang Thai has garnered over the years. The economic interest of Ageas in MTL is 31% and NTI 15%. The strategic support from Ageas constitutes one of the MTLs unique competitive ages over peers. MTL Is guided by Ageas' strategic direction in relation to technical and operations support by Board representation and management participation in MTL. And Ageas also provides technical expertise, including channel development, digital and data analytics initiatives and complex product development. On market share, MTL ranks #3 in new business premium with a share of 15%, while MTL ranks #5 with a share of about 6% with over 50% of its portfolio in Motor. One of the key distribution partners is KASIKORNBANK or KBANK, the third largest bank in Thailand by total assets. It has more than 18 million customers, 860 branches and 19,000 staff. KBANK is also a shareholder in MTL and NTI. MTL's goal is to become a regional company. It is ready to expand beyond its borders in Thailand to the international market, initially the CLMV markets, namely Cambodia, Laos, Myanmar and Vietnam. Thailand is a good staging platform from which to launch the insurance within the CLMV markets due to its proximity and similarities in culture. I will now touch briefly on MTL's operations in Cambodia, Vietnam and Laos. You will find MTL adopting the Ageas entry strategy model in these markets. which is teaming up in joint venture with a strong bank partner with local knowledge and a wide branch network to tap the market. Cambodia, the population is $17 million. The premiums to GDP ratio is less than 1% compared to about 4% in Thailand. The low penetration in Cambodia presents a huge opportunity for MTL. MTL has formed a 49 to 51 joint venture with its partner Canadia Investment Holdings, the holding company of Canadia Bank, Cambodia's second largest bank. Key products sold is credit protection from the bank channel with a focus now expanding to regular premium products. It started in 2016 with OniBank insurance. And beginning 2020, the joint venture has begun building a new agency channel to expand its distribution footprint. Vietnam, MB Ageas Life or MBAL for short. Now Ageas and MTL jointly entered the market in Vietnam in 2016. Ageas holds 29% of the company. Muang Thai Life, 10%; and Military Bank, 61%. Now MBAL ranked 6 in terms of new business premium with about 7% market share. Military Bank is a leading private sector bank in Vietnam, ranked 6 largest by assets among all banks in Vietnam. We have excellent brand recognition in the market. It has an extensive network of 101 branches, offering comprehensive life insurance products and services for over 1.4 million customers. Laos, The population is 7 million. The joint venture is between the Muang Thai Group and the ST Group of Laos. The ST Group is a Laos conglomerate that owns a bank and it holds 70% while the Muang Thai Group holds the remaining 30%. Key products include credit life and motor, and it adopts a multichannel distribution strategy, involving agency, bank, direct and broker. Here, you can find an overview of the gross inflows in Thailand since 2016. As you can see, the bulk of the products sold in Thailand are life products representing more than 80% of the inflows. Hence, we will focus on MTL during this deep dive session going forward. The bulk of the life gross inflows is the renewal premiums. Despite a healthy persistency experience of 85%, there is a drop in renewal premiums. This drop is due to the paid-up policies, which I will now try to explain to you what paid-up policies are all about. Paid-up policies is a term used locally to the note policies that have just completed their premium payment period but for which the policies continue to be in force. For example, a premium payment term of 6 years for a product with a policy term of 15 years. As such, Upon reaching the end of the premium payment period, the policies will no longer contribute to the renewal year premiums and because such policies, paid-up policies. Such products with shorter premium payment term when compared to the policy coverage terms are very popular in Thailand. On the new business regular premiums in recent years for MTL, there has been a refocus towards portfolio quality instead of volumes, driven also by the low interest rate environment and impending IFRS 17 implementation. There has been a deliberate deemphasis across all channels on selling endowment products that typically have a higher average case size but also low margin, while emphasizing more whole of life protection and health products that are much more profitable, but typically are also smaller in case size. On new business single premium, the bulk of which is credit protection, which is a very profitable portfolio. Looking at the overall trend, the COVID in 2020 and 2021 pose severe challenges on the new business front. Nonetheless, there was greatest customer sensitivity to health and protection insurance. And consequently, this led to an enhanced product mix for MTL. For 2021, the value of new business was the highest that MTL has achieved in the last few years. Moving on to distribution and product mix of MTL. On distribution, the main distribution channel is the banking channel through KBANK, while the industry is more agency-driven. Now bancassurance through KBank commenced a new 10-year exclusive distribution agreement on the first of January 2022. It is an integrated model. and the new agreement will tilt sales towards achieving higher value of new business through protection and health, riders and unit link and to capture growth through raising the percentage Banca share of wallet. Digital channels will increasingly play a more vital, visible role. While KBANK sells exclusively for MTL, MTL is not bound exclusively to KBANK. In 2020, MTL established a 10-year deal, exclusive bancassurance deal with [ Alish ] Bank with 80 branches nationwide and also has distribution partnerships with a couple of other smaller banks. Agency key focus remains on recruitment and productivity improvement. MTL currently has about 15,000 agents and sales and advisory skills training is ongoing to further develop the agency force while building on the numbers through active recruitment. On the affinity partnerships under others, MTL continues to explore new distribution and marketing relationships to grow its distribution capabilities. Today, it has a diversified relationship with various partners such as e-commerce platforms, consumer finance and leasing companies. Now on the products. The product strategy is to offer a comprehensive range of products covering all types of ordinary life, riders, investment linked, mortgage as well as group insurance. Currently, it has market share ranking within the top 3 for mortgage and credit life, endowment and whole of life that often includes the health and critical illness riders. I'll now just give you an overview of the 3 categories of products that Muang Thai is within the top 3 ranking. Now first of all, mortgage and credit life. These are single premium level of reducing term insurance products covering loan borrowers with embedded rider benefits such as total permanent disability and critical illness. Loan tenor varies from 3 to 10 years in the case of SME loans, or up to 30 years for housing loans. However, the insurance premium is always collected upfront as a single premium payment to avoid any issues and persistency. Whole of life. These are protection products where benefits are payable upon death or maturity or throughout the contract as periodic cash bonus. These products are often attached with riders, which are additional coverage such as health reimbursement and critical illness among others. Endowment. These are life insurance policies that cover the life of the insured that were helping the insured to save regularly over a specific period of time. The insured gets a lump sum amount on policy maturity upon survival of the policy term. Just note that in this instance, the endowment portfolio of 25% is artificially inflated as under industry definition in Thailand, protection products with policy maturity terminating at 90 years or below have to be classified as endowment, and MTL has a sizable volume of such products. For example, for the bancassurance channel, we -- the top selling product is actually the whole of life, 84, where the term of the product matures at age 80. Moving on now to the challenges facing the insurance industry in Thailand. The challenges to the industry due to COVID, low interest rate environment and impending IFRS 17 implementation are not unique to just Thailand. The slower growth in new business due to the macroeconomic factors and physical and social restrictions and challenges in customer servicing as a result of social distancing and lockdown are but just a few. To counter these challenges, MTL has expanded the product suite so to digital channels. It has accelerated the shift towards non-guaranteed and protection products, including investment link. And it is also more actively monitoring and managing the investment portfolio to mitigate the risk. On the servicing side, the challenges have enabled MTL to also accelerate the implementation of automated processes in new business, claims and point of sales and also launching video call service to reduce the need for physical visits by customers and the adoption of digital sales services on MTL Click line, a social messaging app and interactive voice response. Now MTL Click is an MTL cell servicing app, and to date, some close to 700,000 downloads have been done. And self servicing today also accounts for about approximately 30% of all aftersales service transactions. On the corporate front, the high vaccination rate among the popular is enabling the borders to be increasingly opened with less restrictions and entry requirements. This will see a high influx of foreign tourists, helping to boost the local economy, which is so heavily reliant on the services sector. On the IFRS 17, the tentative effective date of implementation in Thailand is first of January 2024. However, a further delay is slightly and being discussed by the industry. This will be some 2 years after the implementation in Europe, and learnings can obviously be gleaned from the experience of others that have gone before. Aside from the current challenges, there exists also many opportunities for MTL. Now first of all, on the distribution partnership with KBANK. The 4% bancassurance penetration into KBANK's, a growing customer base of currently 18 million customers presents growth opportunities. For example, on the high net worth segment, while it has relatively higher penetration levels, the Banca share of wallet of its top-tier clients is relatively low at just 6%. Now raising this percentage share of wallet by 1% could increase MTL's premium by -- MTL's annual new business premium by approximately [ CNY 70 billion ]. So this is about 4x MTL's bancassurance new business premium. The strategy is, therefore, to better align the products with the bank's customers. On health and aging society, in response to the growing customer awareness and demand for health and critical illness insurance during the COVID pandemic. MTL has been expanding its product offering to match the needs across as many segments as possible. It is also working on developing a pricing concept where premiums will be dynamic based on the customers' exercise data and health checkup. At the same time, MTL is also exploring opportunities in senior care facilities and hospitals. On digital banking landscape and the digital platforms. One of KBANK's growth strategies is to democratize our investment and insurance. This is leveraging the digital banking platform and using analytics to offer the right products that fit the segment. The middle income and mass segments are currently largely untapped and underinsured where the cost of the traditional service model is too high. The strategy, therefore, is to develop small bite-size insurance products straightforward, no field conditions that can be easily decided upon and conveniently purchased and paid online via an automated journey to be able to serve at scale and achieve cost efficiency. Now translating MTL's growth initiatives onto the Ageas' Impact24 strategy. The ambition of MTL is to be the customers' trusted lifetime partner to innovative life, health and investment solutions by putting customers at the heart of everything we do. There is alignment with the Impact24 strategy. There is clear focus in bringing the core to full potential to initiatives in bancassurance agency and operating efficiency improvement as well as acceleration of protection. Leveraging the digital platforms as well as expanding to adjacent businesses beyond the core. Now the next slide, Life technical liabilities. The Life technical liabilities have increased with a compounded annual growth rate of more than 10% showing gradual increases annually. Now the figure in 2019 over here is distorted by foreign exchange between the Thai baht and euro. Local result and IFRS net results are closely aligned. The exception is 2020 related to impairments taken in but not in local tire accounting in Q1 of 2020, where the index Stock Exchange of Thailand loss of some 29% in that particular quarter. And we want to note that 95% of the net result is actually related to MTL. Now I shall end by highlighting our investment return in the Thai operations. The initial investment was EUR 61 million at our share. In total, so far, we have invested EUR 85 million while we have received EUR 162 million of cash, comprising dividends and a capital gain in 2009, giving a net positive or some EUR 18 million meaning that we have recouped our investment and more. With that, I conclude the Thailand deep-dive introduction, and we'll be happy to take your questions. Thank you.