SBI Life said it registered a growth of 9 per cent in the value of new business (VoNB) to Rs 5,550 crore in FY24.VoNB is the present value of expected future earnings from new policies written during a specified period.
Mumbai:
SBI Life Insurance, the second largest life insurer in the country, on Friday reported 4 per cent rise in net profit at Rs 811 crore for the fourth quarter ended March 2024 as value of new business grew modestly.
The life insurer had posted a net profit of Rs 777 crore in the year-ago quarter.
Total income during January-March FY24 rose to Rs 37,567 crore from Rs 22,805 crore in the same period of FY23, SBI Life said in a regulatory filing.
Net premium income in Q4FY24 stood at Rs 25,116 crore as against Rs 19,897 crore in the year-ago period.
For the full year 2023-24, the company’s net profit grew 10 per cent to Rs 1,890 crore from Rs 1,720 crore in the previous year.
Gross written premium (GWP) of the life insurer was at Rs 81,400 crore, up 21 per cent in FY 24, with a renewal premium of Rs 43,193 crore, showing a growth of 14 per cent during the reporting year.
The embedded value of the life insurer has risen by 27 per cent to Rs 58,260 crore during the year.
Total income during the year rose to Rs 1,32,631 crore from Rs 81,598 crore a year ago.
VoNB(value of new business) Margin of the insurer has fallen from 30 1 per ent in FY 23 to 28.1 per cent in FY24.
However, it has registered a growth of 9 per cent in the VoNB to Rs 5,550 crore in FY24.
VoNB is the present value of expected future earnings from new policies written during a specified period. It reflects the additional value expected to be generated through the writing of new policies during a specified period.
SBI Life’s assets under management (AUM) grew 27 per cent to Rs 3.8 lakh crore as of March 31, 2024, it said.
The company’s net worth increased by 15 per cent from Rs 13,020 crore billion as on March 31, 2023 to
Rs 14,910 crore as on March 31, 2024. It has a robust solvency ratio of 1.96 as on March 31, 2024 as against the regulatory requirement of 1.50
indicating strong financial position of the company.
However, solvency ratio of the insurer declined to 196 per cent from 215 per cent in the previous fiscal.
Solvency margin represents the additional capital that an insurer must maintain to cover potential claims beyond their expected liabilities.
This serves as a financial safety net, ensuring their ability to settle all claims even in the most challenging circumstances.