SBI Life Insurance on Thursday reported 13.44 per cent year-on-year rise in profit at Rs 381.21 crore for the quarter ended March 31. The insurer had posted a profit of Rs 336.05 crore in the corresponding quarter last year.
The life insurer’s profit after tax increased by 21 per cent to Rs 11.5 billion in FY 2018.
The renewal premium of the company grew at 32.3 per cent to Rs 143.9 billion in FY 2018.
The company’s Value of New Business (VoNB) for FY 2018 was Rs 13.9 billion and the VoNB margin increased from 15.4 per cent in FY 2017 to 16.2 per cent in FY 2018.
The company’s premium earned (gross premium less premium on reinsurance ceded) increased by 20.7 per cent from Rs 208.5 billion in FY 2017 to Rs 251.6 billion in FY 2018 primarily due to increase in retail new business premium by 30.0 per cent from Rs 64.7 billion in FY 2017 to Rs 84.1 billion in FY 2018 and also due to increase in renewal premium from retail business by 35.3 per cent from Rs 99.2 billion in FY 2017 to Rs 134.2 billion in FY 2018.
The company’s Assets under management(AUM) have increased by 19 per cent from Rs 977.4 billion as of March 31, 2017 to Rs 1,162.6 billion as of March 31, 2018.
As of March 31, 2018, the life insurer’s AUM was Rs 1,162.6 billion, of which equities constituted 23 per cent, government securities constituted 45 per cent, corporate bonds 25 per cent and other securities 7 per cent. The company has debt –equity mix of 77:23. Over 90% of the debt investments are in AAA rated and sovereign instruments
The company’s total investment income has decreased by Rs 8.0 billion from Rs 97.0 billion in FY 2017 to Rs 89.0 billion in FY 2018. The total investment income of Rs 89.0 billion in FY 2018 comprised of Rs 39.7 billion under unit linked portfolio, Rs 44.8 billion under traditional portfolio and Rs 4.5 billion under shareholder portfolio.
Total investment income under unit linked portfolio has decreased by Rs 15.5 billion from Rs 55.3 billion in FY 2017 to Rs 39.7 billion in FY 2018 due to fair value change. Fair value change has decreased by Rs 22.05 billion from a gain of Rs 15.2 billion in FY 2017 to a loss of Rs 6.8 billion in FY 2018. This is offset with the corresponding decrease in unit-linked liability (fund reserves) as it is pass through to linked policyholders’.
The company’s pay out on claims and benefits increased by 22.6% from Rs 95.5 billion FY 2017 to Rs 117.1 billion in FY 2018 primarily on account of increase in withdrawals by Rs 11.3 billion and increase in survival benefit by Rs 5.1 billion in FY 2018 as compared to FY 2017.
The life insurer’s 13th month persistency stood at 83.03% for FY2018 as compared to 81.07% for FY 2017
The Company’s net worth increased by 17.6per cent from Rs 55.5 billion as at March 31, 2017 to Rs ` 65.3 billion as at March 31, 2018. The solvency ratio was at 2.06 as against the regulatory requirement of 1.50.
Earlier in the session, shares of SBI Life scaled fresh all-time high of Rs 770.95. However, the scrip later closed 0.43 per cent down at Rs 762.35.