SBI Life Insurance Q4 Results: Profit Rises, Beats Estimates

SBI Life Insurance Co.’s fourth-quarter profit rose year-on-year, beating estimates.

Yearly Highlights

• The after-tax profit rose 14% to Rs 1,721 crore.

• Value of new business grew 37% to Rs 5,070 crore.

• VNB margin expanded to 30.1% from 25.9%.

• Annualised premium equivalent rose 18%.

• Persistency ratios for the 13th month improved to 85.52% from 85.18%, and for the 61st month, it rose to 55.60% from 49.48%.

• Operating expense ratio remained unchanged at 5.1%, while commission ratio rose to 4.5% from 3.7%. Thus, overall cost ratio was up 9.6% from 8.8%.

• Assets under management increased 15% to Rs 3 lakh crore.

• Return on equity grew marginally to 14% against 13.7% a year ago.

• The share of par in the APE product mix was 6% from 5%, while that from non-par rose to 39% from 29%. Share of ULIP declined to 55% from 66%.

Overall new business premiums grew by 16% to Rs 29,590 crore in FY23, aided by growth in regular premium business by 17%.

The company reported a growth in protection segment new business premium by 19% to Rs 3,640 crore in FY23, due to 6% growth in individual protection and 25% growth in group protection.

"The company has maintained its leadership position in individual rated premium of Rs 15,220 crore, with 22.3% private market share in FY23," the exchange filing said.

Shares of SBI Life ended 1.12% higher on Wednesday, as compared with a 0.28% rise in the benchmark BSE Sensex.