NTUC Income AR 2019

10 HERE FOR SURE LIFE INSURANCE In 2019, Income received $3.6 billion in total gross life and health insurance premiums and weighted new business premiums recorded a strong growth at 11% year on year. GENERAL INSURANCE Overall, the general insurance business generated $368 million in earned premiums in 2019, which was 7.9% higher than the previous year. Motor insurance remained the key contributor of the general insurance business, closing the year 8.5% higher than 2018 at $262.8 million. We were once again Singapore’s top motor insurer as we grew our market share by premium and vehicle count to 24.5% and 27.0% respectively. We also saw an upswing across our non-motor business with our commercial and personal lines of business recording a 10.2% and 4.5% growth respectively compared to last year. SHAREHOLDERS Taking into account the positive financial results for the year, the Directors have proposed a dividend of 6.0% for the financial year ended 31 December 2019. To celebrate 50 years of Income making insurance accessible in Singapore this year, we are also declaring a special dividend to mark our Golden Jubilee. OUR FINANCIAL STRENGTH AND CORPORATE GOVERNANCE Our financial strength is reflected by our strong credit ratings of AA- by Standard & Poor’s, which we have held since 2009. It underscores our strong competitive position and diversified business mix. In 2019, Income maintained a healthy capital adequacy ratio of 283%. We have also embedded a strong risk and compliance culture at Income where we uphold the highest standards of corporate governance, transparency and disclosure as we strive for excellence as a high performing organisation. IMPROVING ACCESSIBILITY BY BROADENING REACH & CHOICE As customers increasingly lead digital-first lifestyles, Income must adapt to remain relevant to our customers so that we continue to make insurance accessible, affordable and sustainable in Singapore. In May last year, Income launched Online Life and askSage, our life insurance portal and digital adviser for life insurance respectively, to offer customers the widest option of life insurance online. The integrated proposition is powerful because, for the first time, customers are supported with digital assets that help them fact-find, carry out financial review and needs analysis, as well as, identify, compare and purchase insurance products seamlessly. Especially for digital natives who primarily prefer online engagements, this online proposition is significant in extending their access to life insurance and closing the protection gap in Singapore. Online Life and askSage also mark a milestone in Income’s push to digitalise its core business lines across life, health and general insurance so as to offer customer choice and flexibility when engaging with Income. Understanding that insurance can be complex at times and that it is essential that customers are supported by value- added high-touch advisory by Income financial advisers, we expanded and rejuvenated our distribution footprint. Not only do Online Life and askSage support insurance access through seamless online-to-offline consumer touch-points, Income also embarked on innovations such as, the Personalised Adviser Store, to grow our strength as a digital sales force to engage customers more effectively and meaningfully. Even as we sharpen our digital capabilities and offerings, Income extended and complemented its traditional touch points which include tied agents, retail consultants and other licensed financial advisers, with the launch of its wholly-owned financial advisory (FA) firm, Infinitum, last year. The setting up of Infinitum through the acquisition of smaller but well-established FA firms was a unique opportunity for us to consolidate and tap economies of scale and a wealth of experience in the FA industry to strengthen Income’s customer touch-points. EMBARKING ON STRATEGIC PARTNERSHIPS TO AUGMENT GROWTH Income launched a joint venture (JV), Davita Singapore, with Davita and NTUC Health in March 2019 to operate kidney dialysis centres in Singapore. The collaboration was an industry first, bringing together one of the world’s largest healthcare providers in renal care, a community care provider and a local insurer to offer value-based and outcome-driven renal disease management in DIRECTORS’ REPORT