August8 , 2022

SBI Life Q1: SBI Life Q1 Results: Profit rises 18% YoY to Rs 263 crore, meets estimates

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SBI Life on Thursday reported a 17.78 per cent year-on-year (YoY) rise in net profit at Rs 262.85 crore for the June quarter compared with Rs 223.16 crore in the corresponding quarter last year.

Gross written premium (GWP) for the quarter rose 35 per cent YoY to roughly Rs 11,350 crore in the June quarter, mainly due to 83 per cent growth in first-year premium (FYP) and 14 per cent growth in renewal premium.

An ET NOW poll of analysts had anticipated the profit figure at Rs 260 crore.

New business premium (NBP) grew 67 per cent to roughly Rs 5,590 crore in the June quarter, driven by strong growth. Protection NBP increased 63 per cent to Rs 700 crore from Rs 430 crore YoY, thanks to 55 per cent growth in individual protection business at Rs 200 crore and 66 per cent growth in group protection business at Rs 500 crore.

The annual premium equivalent (APE) grew 80 per cent to Rs 2,900 crore. Value of new business (VNB) was up 130 per cent YoY to Rs 8,800 crore. VNB margin expanded 665 basis points to 30.4 per cent.

The company said it maintained its leadership position in individual rated premium of Rs 2,580 crore, with 24 per cent private market share in June quarter. The company said it has a strong distribution network of 222,957 trained insurance professionals along with widespread operations with 970 offices, said its APE channel mix for the June quarter comprised 63 per cent of the bancassurance channel 26 per cent agency channel and 11 per cent other channels.

NBP of the agency channel increased 50 per cent to Rs 940 crore, and NBP of the Banca channel climbed 94 per cent YoY to Rs 2,900 crore.

The total cost ratio for the quarter came in at 11.2 per cent compared with 10.5 per cent in the year-ago quarter. The commission ratio came in at 4.6 per cent against 3.2 per cent YoY, while operating expense stood at 6.6 per cent against 7.2 per cent YoY. SBI Life said its 13th-month persistency stood at 88.71 per cent in Q1FY23 against 88.37 per cent YoY, adding that 25th month and 49th-month persistency improved by 339 and 403 basis points, respectively, due to our focus on improving the quality of business and customer retention.

Overall, the asset under management rose 13 per cent to Rs 2,62,350 crore from Rs 2,31,560 crore YoY, with debt-equity mix of 73:27. Over 97 per cent of the debt investments were in AAA and Sovereign instruments, SBI Life said in a BSE filing.

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