Earnings Review
SBI Life Jul-Sept PAT up 39% YoY to INR 5.29 bln
This story was originally published at 17:31 IST on 23 October 2024
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--SBI Life Jul-Sept net profit INR 5.29 bln
--SBI Life Jul-Sept net profit INR 5.29 bln vs INR 3.80 bln
--SBI Life Apr-Sept net profit INR 10.49 bln vs INR 7.61 bln
--SBI Life Jul-Sept net premium income INR 202.66 bln vs INR 200.50 bln
--SBI Life Apr-Sept net premium income INR 353.72 bln vs INR 331.54 bln
--SBI Life 13th month persistency at 84.16% Sept 30 vs 83.61% a qtr ago
--SBI Life: Solvency ratio at 2.04 times as on Sept 30
By Kshipra Petkar
MUMBAI – SBI Life Insurance Co. Ltd. reported a net profit of INR 5.29 billion for the Jul-Sept quarter, up 39.3% on year. Sequentially, it was up merely 2%. For the half year ended September, the net profit was at INR 10.49 billion, up from INR 7.61 billion reported a year ago.
The net premium income of the life insurance company grew slightly to INR 202.66 billion from INR 200.50 billion reported a year ago. Sequentially, the net premium income was up 34.16%.
Within gross premiums, renewable premiums and first year premiums saw some pick up, while single premiums were down on year as well on a sequential basis.
First year premiums were up 6.1% on year at INR 49.16 billion and the renewal premiums were up 15.8% on year to 117.21 billion in the reporting quarter. Single premiums fell over 30% on year to INR 37.76 billion.
For the half year ended September, the value of new business, a measure of profitability of the new business written in a period, increased 2% on year to INR 24.2 billion and the value of new business margin stood at 26.8%, lower compared with 28.6% a year ago.
The annualised premium equivalent, a measure of new business written by a company, grew 9% on year to INR 90.3 billion. This was due to a rise in unit-linked insurance plans, which were up 24% on year to INR 57.2 billion in the half year ended September.
Annualised premium equivalent channel mix for Apr-Sept comprises bancassurance channel 59%, agency channel 31% and other channels 10%.
In Apr-Sept, the new business premiums fell 3% on year to INR 157.3 billion. Within this, the protection business fell 14% on year to 17.2 bln rupees, annuity premiums fell 17% on year to INR 23.8 billion and group savings fell 36% on year to INR 26.1 billion.
As of Sept. 30, the insurer's 13th-month persistency ratio, a measure of customer stickiness, improved to 84.16% from 83.32% a year ago.
The company's total assets under management increased 27% on year to INR 4.39 trillion as of Sept. 30. The company had a debt-equity mix of 60:40 at the end of September, of which over 95% of the debt investments were in AAA-rated and sovereign instruments.
As of Sept. 30, the solvency ratio was at 2.04 times, against the regulatory requirement of 1.5 times. End
Edited by Akul Nishant Akhoury
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