SBI Life Insurance Company's standalone net profit dropped 17.71% to Rs 246.62 crore on a 92.01% surge in income from investments (net) to Rs 10,734.43 crore in Q2 September 2021 over Q2 September 2020.
Net premium income jumped 14.02% to Rs 14,660.64 crore in Q2 FY22 as compared to Rs 12,857.95 crore in Q2 FY21.
On a half-yearly basis, profit after tax (PAT) stood at Rs 470 crore for H1 FY22. Value of New Business (VoNB) jumped 64% Y-o-Y (year-on-year) to Rs 1,220 crore in H1 FY22. VoNB margin increased by 300 bps to 21.8% in H1 FY22 from 18.8% in H1 FY21. An additional reserve of 270 crore towards COVID-19 pandemic has been kept as at 30 September 2021. The company has made provision of Rs 116 crore (including interest) with respect IRDAI order as on 11 January 2017 directing refund of administration expenses to members of group insurance policy for Super Suraksha' product.
The 13th month persistency (based on premium considering Single Premium and Fully Paid-up policies & group business where persistency is measurable) stood at 87.66% in H1 FY22 as against 85.92% in H1 FY21. Strong growth in 13th month persistency (based on premium considering Regular Premium/ Limited Premium payment under individual category) by 155 bps to 84.72% for H1 FY22 as compared to 83.17% in H1 FY21 due to our focus on improving the quality of business and customer retention.
Asset under Management (AuM) grew 31% from Rs 1,86,360 crore as on 30 September 2020 to Rs 2,44,180 crore as on 30 September 2021 with debt-equity mix of 70:30. Over 95% of the debt investments are in AAA and Sovereign instruments. Total investment income (net of diminution provision and write-off) of Rs 1,86,900 crore in H1 FY22 comprised of Rs 1,81,700 crore in policyholders portfolio and 520 crore in shareholders portfolio. Investment income has increased by 28% mainly due to profit on sale or redemption of investments.
SBI Life Insurance Company has written-off investment receivables of Rs 29 crore for Non-Convertible Debentures (NCDs) of DHFL on settlement as per the resolution plan. The company has already made 100% NPA provision of Rs 53 crore in FY20 due to default in interest and principal repayment of DHFL NCDs.
The company's net worth increased 13% to Rs 10,910 crore as on 30 September 2021 from Rs 9,660 crore as on 30 September 2020. Strong solvency ratio as on 30 September 2021 of 2.12 as against the regulatory requirement of 1.50.
SBI Life Insurance Company is one of the leading life Insurance companies in India. The company has strong distribution network of 2,00,190 trained insurance professionals consisting of agents, CIFs and SPs along with widespread operations with 947 offices across country. The company has achieved private market leadership in Individual Rated Premium of Rs 4,990 crore with 23.6% private market share in H1 FY22.
Shares of SBI Life Insurance Company rose 1.05% to close at Rs 1,183.95 on BSE.
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