The life insurer’s Value of New Business (VNB) jumped 130 per cent to Rs 882 crore and the VNB margin soared 665 basis points to 30.4 per cent during the reporting period
Mumbai:
SBI Life on Thursday reported an 18 per cent growth in net profit at Rs 263 crore in the April-June quarter notwithstanding heavy losses from investments negating the robust premium growth.
The life insurer’s Value of New Business (VNB) jumped 130 per cent to Rs 882 crore and the VNB margin soared 665 basis points to 30.4 per cent during the reporting period.
The life insurer’s gross written premium (GWP) has grown by 35 per cent to Rs 11,350 crore in Q1 FY 23 mainly due to 83 per cent growth in First Year Premium (FYP) and 14 per cent growth in renewal premium in Q1 FY 23
SBI Life has gone for additional reserve of Rs 290 crore towards COVID-19 pandemic as at June 30, 2022.
The largest private sector life insurer said in a statement that its net premium income rose to Rs 11,036 crore in the reporting quarter from Rs 8,312.5 crore a year ago. But this was shadowed by the massive Rs 6,405.7 crore loss the company booked from its investments as against Rs 7,409.9 crore of net gains in the year-ago period.
Of the total premium, first premium rose nearly four-fold to Rs 343.7 crore from Rs 119 crore a year, while renewal premium rose to Rs 127.74 crore from Rs 122.5 crore and single premium rose to Rs 36.11 crore from Rs 20.18 crore.
Overall new business premium, which shows the success of its products, stood at Rs 5,591 crore at the end of June as against Rs 3,345 crore in the year-ago quarter. Regular premium has increased 83 per cent over the corresponding quarter.
SBI Life continues to enjoy market leadership in individual new business premium with a market share of 24.5 per cent and Asset Under Management (AUM) of Rs 3,430 crore. Its annualised premium equivalent grew 80 per cent to Rs 2,905 crore,
Its new business premium from protection products rose 63 per cent to Rs 695 crore, of which new individual protection premium registered a growth of 55 per cent to Rs 203 crore, taking the total live individual new business premium to Rs 3,430 crore, up 87 per cent over the corresponding quarter of FY21.
The solvency ratio continues to remain robust at 2.21 as against the regulatory requirement of 1.50.
Total AUM grew 13 per cent to Rs 2,62,349 crore from Rs 2,31,559 crore, with the debt-equity ratio of 73:27.