SBI Life Insurance Q4 Results: Profit Rises, Beats Estimates
The private insurer’s profit rose 16% year-on-year to Rs 777 crore in the quarter ended March, according to its exchange filing.
SBI Life Insurance Co.’s fourth-quarter profit rose year-on-year, beating estimates.
The private insurer’s profit surged 16% year-on-year to Rs 777 crore in the quarter ended March, according to its exchange filing. That compares with the Rs 677 crore profit estimated by a consensus of analysts tracked by Bloomberg.
Sequentially, the bottom line expanded 1.6 times.
The company earned a net premium of Rs 19,897 crore, which is a 14% increase over a year earlier.
SBI Life Q4 FY23 Highlights (YoY)
Revenue rose 6% to Rs 22,805 crore, as against an estimate of Rs 28,998 crore.
Of the gross premiums, new business premium—first-year plus single premium—rose 21%, while renewal premium increased 10%.
The 13th month persistency ratio (or customer retention) on premium basis fell to 84.35% from 85.01%, while the 61st month persistency ratio rose to 57.65% from 51.13%.
Solvency ratio, which measures the extent to which assets cover commitments for future liabilities, rose to 2.15 from 2.05. The minimum regulatory requirement is 1.50.
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.
