SBI Life Insurance Q2 Results: Net Premium Growth Drives Profit

SBI Life Insurance Co.’s second-quarter profit rose supported by a growth in net premiums.

Half-Yearly Highlights

• The after-tax profit rose 36% to Rs 640 crore.

• Value of new business grew 53% to Rs 2,120 crore.

• VNB margin expanded to 31% from 24.7%.

• The embedded value rose 20% over last year at Rs 42,410 crore.

• Annualised premium equivalent rose 22%.

• Overall revenue fell 22% due to a decline in investment income.

• Of gross written premiums, new business premium grew 27%, while renewal premium increased 16%.

• Persistency ratio on premium basis improved across all cohorts.

• Operating expense ratio improved by 20 basis points to 5.6%, while commission ratio rose to 4.5% from 3.6%. Thus, overall cost ratio was up at 10.2% from 9.5%.

• Assets under management increased 16% to Rs 2.8 lakh crore.

• Return on equity grew to 10.7% against 8.8% a year ago.

The company has set aside an additional reserve of Rs 290 crore towards Covid-19 pandemic, as of Sept. 30, 2022.

Shares of SBI Life ended the day's trading 2.21% higher compared with a 0.81% rise in the benchmark BSE Sensex.