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Informist, Friday, Jan. 17, 2025

 

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--SBI Life Oct-Dec net profit INR 5.51 bln 
--SBI Life Oct-Dec net profit INR 5.51 bln vs INR 3.22 bln year ago 
--SBI Life Oct-Dec net premium income INR 248.28 bln vs INR 223.16 bln YoY 
--SBI Life Apr-Dec net profit INR 16.00 bln vs INR 10.83 bln year ago 
--SBI Life Apr-Dec net premium income INR 601.99 bln vs INR 554.71 bln YoY 
--SBI Life: Solvency ratio at 2.04 times as on Dec 31 
--SBI Life 13th month persistency at 82.67% as on Dec 31 
--SBI Life: New business premium at INR 262.6 bln Apr-Dec, up 1% YoY 
--SBI Life: Renewal premium at INR 347.3 bln Apr-Dec, up 15% YoY 
--SBI Life's gross written premium at INR 609.8 bln, up 9% on year
--SBI Life AUM at INR 4.42 tln as on Dec 31, up 19% on year 
--SBI Life: Value of new business INR 42.9 bln Apr-Dec, up 6% YoY 
--SBI Life: Apr-Dec value of new business margin at 26.9% vs 28.1% yr ago 

 

By Kshipra Petkar
 

MUMBAI – SBI Life Insurance Co. Ltd has reported a net profit of INR 5.51 billion, up 71.2% on year for the quarter ended December. Sequentially, the bottom line was up 4%. The rise in profits was mainly on the back of a fall in expenses for the life insurer.

 

The total expenses of the company fell over 50% on year to INR 181.95 billion, mainly driven by the fall in change in actuarial liability. The change in actuarial liability fell 88.3% on year to INR 29.08 billion for Oct-Dec. 

 

The net premium income for the quarter ended December was up 11.3% on year at INR 248.28 billion. However, the total income of the life insurer fell over 50% on year to INR 185.42 billion for the reporting quarter, mainly due to losses seen on the investment portfolio. Sequentially, it was lower by 53.7%.

 

For the nine months ended December, the net business premium was INR 262.6 billion, marginally higher than INR 260 billion reported a year ago. The gross written premiums were up 9% on year at INR 609.8 billion for Oct-Dec. The rise in the gross written premiums was mainly due to growth in the new business regular premiums and a 15% on-year growth in renewal premiums in Apr-Dec.

 

The individual new business premiums were up 12% on year at INR 198.6 billion and the individual rated premiums were up 14% on year at INR 145.5 billion for the nine months ended December. The protection new business premium was INR 27.9 billion in Apr-Dec. The annualised premium equivalent was up 11% on year at INR 159.7 billion for Apr-Dec. The life insurer's bancassurance channel stood at 63%, the agency channel at 28% and other channels at 9% for this period.

 

The life insurer has increased the share of unit-linked insurance products in the product mix, and lowered the share of participating and non-participating products. As of Dec. 31, the share of unit-linked insurance products in the total product mix rose to 67% from 61% a year ago, the share of non-participating plans came down to 29% from 35% a year ago, and the share of participating products remained unchanged at 4%.

 

The life insurance company's private market share, based on individual rated premiums, fell marginally to 25.3% as on Dec. 31 from 26.5% a year ago. The value of new businesses for the company increased 6% on year to INR 42.9 billion for Apr-Dec and the new business margin moderated to 26.9% from 28.1%.

 

The 13th month persistency ratio, which determines customer stickiness, stood at 82.67% on a premium basis as of Dec. 31 and at 74.61% on a policy basis. Robust solvency ratio of 2.04, as of Dec. 31, as against the regulatory requirement of 1.50, indicating a strong financial position of the company.

 

The assets under management grew 19% on year to INR 4.42 trillion as of Dec. 31, with debt-equity mix of 61:39. The life insurer said in a release that 94% of the debt investments are in 'AAA' and sovereign instruments.

 

On Friday, shares of SBI Life Insurance Co. closed 1.8% higher at INR 1,540.50 on the National Stock Exchange.  End

 

Edited by Tanima Banerjee