Despite Covid-19 pandemic and lockdown hindrances, SBI Life, the life insurance subsidiary of the State Bank of India,has seen its net profit rising by five per cent year-on-year to Rs 390 crore in the June quarter.

The listed life insurer,though has seen its new business premium falling by three per cent y-o-y to Rs 3060 crore,has increased its gross premium income by 14 per cent y-o-y to Rs 7640 crore in Q1 FY 2021 mainly due to strong growth in renewal premium that has expanded by 30 per cent y-o-y to Rs 4580 crore in the reporting quarter.

According to the company,the value of its new business (VoNB) decreased by 29 per cent to Rs 2400 crore y-o-y in Q1 FY 2021 while VoNB margin increased by 80 bps from 17.9per cent y-o-y  in Q1 FY2020 to 18.7 per cent  in Q1FY 2021. The company's VoNB decreased by 31 per cent  y-oy to Rs 2600 crore in  Q1 FY 2021 (with effective tax rate) and the comoany;s VoNB margin increased from 19.9 per cent y-o-y  in Q1 FY 2020 to 20.1 per cent in Q1 FY 2021 (with effective tax rate).

The company's asset under management has grown by 19 per cent y-o-y to Rs1,75,350 crore in June quarter.with debt-equity mix of 76:24. Over 90  per cent of the debt investments are in AAA and Sovereign instruments.

The company’s net worth increased by 17 per cent to Rs 93,100 crorte  as on June 30, 2020.It has a strong solvency ratio 2.39 in June quarter as against the regulatory requirement of 1.50.

The company has achieved market leadership 23.9 per cent in private sector life insurance market share in Q1 FY 2021.

The company's  individual new business premium from non- par segment has increased by 50 per cent y-o-y  to Rs 4200 crore  in Q1 FY 2021.

SBI Life has a 13th month persistency of 81.55 per cent in Q1 FY 2021 as compared to 84.46 per cent in Q1 FY 2020.The comoany has seen a strong growth in 61st month persistency of 63.14 per cent in Q1 FY 2021 as compared 56.27 per cent in Q1FY 2020.

The company's new business premium channel mix for Q1 FY 2021 is-bancassurance channel 41 per cent  agency channel 14 per cent , and other channels 45 per cent..

SBI Life also has a large and productive agent network comprising of 137,000 agents, as on June 30, 2020. The company’s other distribution channels include direct sales and sales through corporate agents, brokers, insurance marketing firms and other intermediaries.

As on June 30, 2020, the Company has a widespread network of 940 offices across the country.