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SBI Life corrects after Q3 PAT drops 40% YoY

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Capital Market
Last Updated : Jan 22 2021 | 3:16 PM IST

SBI Life Insurance Company slipped 1.17% to Rs 868.35 after life insurer's net profit declined by 40.3% to Rs 232.85 crore on a 68.3% rise in total income to Rs 26,551.90 crore in Q3 FY21 over Q3 FY20.

While the company's net premium income improved by 17.7% to Rs 13,766.49 crore, net income from investments surged to Rs 12,776.91 crore in Q3 December 2020 over Q3 December 2019.

Profit before tax in Q3 FY21 stood at Rs 233.08 crore, down by 40.9% from Rs 394.91 crore in Q3 FY20. Tax provisions declined by 95.5% year-on-year (YoY) to Rs 0.23 crore.

Value of New Business (VoNB) fell by 2% to Rs 1450 crore in the nine months ended in December 2020 (9M FY21) from Rs 1470 crore in the nine months ended in December 2019 (9M FY20). New business margin stood at 19.3% in 9M FY21 as compared to 18.3% in 9M FY20.

The company's operating expense ratio fell to 5.1% in 9M FY21 from 6% in 9M FY20. Commission ratio decreased to 3.4% in 9M FY21 from 4% in 9M FY20.

The company's net worth increased by 19% to Rs 10,130 crore as on 31 December 2020 from Rs 8,480 crore as on 31 December 2019. The solvency ratio as on 31 December 2020 was at 2.34 as against the regulatory requirement of 1.50.

Assets under Management (AuM) has grown by 28% to Rs 2,09,500 crore as on 31 December 2020 from Rs 1,64,190 crore as on 31 December 2019 with debt-equity mix of 73:27 and more than 90% of the debt investments are in AAA and Sovereign instruments.

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SBI Life Insurance Company is one of the leading life Insurance companies in India. The company has distribution network of 224,223 trained insurance professionals consisting of agents, CIFs and SPs along with 947 offices across country.

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First Published: Jan 22 2021 | 2:52 PM IST

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