Its net premium income jumped 22.6% to Rs 24,848, driven by a near 20% rise in premiums from old policies that were renewed
Mumbai:SBI Life Insurance, the second largest life insurer next to Life Insurance Corporation, reported a 7% fall in second-quarter profit on Friday, hurt by higher operating expenses and commissions paid to boost sales amid intensifying competition in the sector.
The insurer’s net profit fell to Rs 495 crore ($56.3 million) for the quarter ended September 30 from Rs 529 crore a year earlier.
Its net premium income jumped 22.6% to Rs 24,848, driven by a near 20% rise in premiums from old policies that were renewed.
Insurance demand has remained strong India, bolstered by rising financial awareness.
However, competition has also increased, resulting in insurers paying higher commissions to agents to drive sales.
SBI Life’s expenses, which include operating costs and commissions paid, rose 28% to 27.59 billion rupees.
Rising costs outweighed gains from policy renewals and weighed on the company’s profit.